Statement of Financial Position
| Statement of Financial Position, Classified (USD $) | ||
| In Millions | Mar. 31, 2009
Unaudited | Dec. 31, 2008
|
| Assets, Current [Abstract] | ||
| Cash and Cash Equivalents, at Carrying Value | $1,145 | $1,368 |
| Short-term Investments | 989 | 435 |
| Accounts and Other Receivables | 231 | 209 |
| Inventories of Parts and Supplies, At Cost | 171 | 203 |
| Deferred Tax Assets, Net, Current | 365 | 365 |
| Prepaid Expenses and Other Current Assets | 95 | 73 |
| Assets, Current, Total | 2,996 | 2,653 |
| Property, Plant and Equipment, Net [Abstract] | ||
| Property, Plant and Equipment, Net | 10,813 | 11,040 |
| Flight Equipment | 13,650 | 13,722 |
| Ground Property and Equipment | 1,798 | 1,769 |
| Deposits on Flight Equipment Purchase Contracts | 333 | 380 |
| Property, Plant and Equipment, Gross, Total | 15,781 | 15,871 |
| Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 4,968 | 4,831 |
| Other Assets, Noncurrent | 370 | 375 |
| Assets, Total | 14,179 | 14,068 |
| Liabilities, Current [Abstract] | ||
| Accounts Payable | 693 | 668 |
| Accrued Liabilities | 1,016 | 1,012 |
| Long-term Debt, Current | 163 | 163 |
| Deferred Air Traffic Revenue | 1,251 | 963 |
| Liabilities, Current, Total | 3,123 | 2,806 |
| Long-term Debt, Noncurrent | 3,447 | 3,498 |
| Deferred Tax Liabilities, Noncurrent | 1,895 | 1,904 |
| Deferred Gains from Sale and Leaseback of Aircraft | 111 | 105 |
| Other Liabilities, Noncurrent | 675 | 802 |
| Stockholders' Equity [Abstract] | ||
| Common Stock, Value | 808 | 808 |
| Additional Paid in Capital, Common Stock | 1,219 | 1,215 |
| Treasury Stock, Value | (996) | (1,005) |
| Accumulated Other Comprehensive Income (Loss), Net of Tax | (922) | (984) |
| Retained Earnings (Accumulated Deficit) | 4,819 | 4,919 |
| Stockholders' Equity, Total | 4,928 | 4,953 |
| Liabilities and Stockholders' Equity, Total | $14,179 | $14,068 |
Statement of Income (Excluding
| Statement of Income (Excluding Gross Margin Alternative) (Unaudited, USD $) | ||
| In Millions | 3 Months Ended
Mar. 31, 2009 | 3 Months Ended
Mar. 31, 2008 |
| Sales Revenue, Net [Abstract] | ||
| Passenger Revenue | $2,252 | $2,414 |
| Cargo and Freight Revenue | 30 | 34 |
| Other Sales Revenue, Net | 75 | 82 |
| Revenues, Total | 2,357 | 2,530 |
| Costs and Expenses [Abstract] | ||
| Salaries, Wages, and Benefits | 836 | 800 |
| Fuel Costs | 698 | 800 |
| Maintenance Materials and Repairs | 184 | 143 |
| Aircraft Rental | 45 | 38 |
| Landing Fees and Other Rentals | 166 | 171 |
| Depreciation and Amortization | 150 | 145 |
| Other Cost and Expense, Operating | 328 | 345 |
| Operating Expenses, Total | 2,407 | 2,442 |
| Operating Income (Loss), Total | (50) | 88 |
| Interest Expense, Debt | 44 | 28 |
| Interest Costs, Capitalized | (6) | (8) |
| Investment Income, Interest | (4) | (7) |
| Other Nonoperating Income (Expense) | 23 | 38 |
| Total Other Expenses (Income), Total | 57 | 51 |
| Income (Loss) from Continuing Operations before Income Taxes, Minority Interest, and Income (Loss) from Equity Method Investments, Total | (107) | 37 |
| Income Tax Expense (Benefit), Total | (16) | 3 |
| Net Income (Loss), Total | ($91) | $34 |
| Earnings Per Share, Basic, Total | -0.12 | 0.05 |
| Weighted Average Number of Shares Outstanding, Basic | 740 | 733 |
| Earnings Per Share, Diluted, Total | -0.12 | 0.05 |
| Weighted Average Number of Diluted Shares Outstanding | 740 | 734 |
Statement of Cash Flows
| Statement of Cash Flows (USD $) | ||
| In Millions | 3 Months Ended
Mar. 31, 2009 Unaudited | 3 Months Ended
Mar. 31, 2008 Unaudited |
| Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
| Net Income (Loss) | ($91) | $34 |
| Depreciation and Amortization | 150 | 145 |
| Amortization of Deferred Gains on Sale and Leaseback of Aircraft | (3) | (3) |
| Share-based Compensation | 3 | 5 |
| Deferred Income Tax Expense (Benefit) | (16) | (5) |
| Excess Tax Benefit from Share-based Compensation, Operating Activities | 3 | 0 |
| Increase (Decrease) in Accounts and Other Receivables | (22) | (70) |
| Increase (Decrease) in Other Current Operating Assets | (46) | 220 |
| Increase (Decrease) in Accounts Payable and Accrued Liabilities | 47 | 46 |
| Increase (Decrease) in Air Traffic Liability | 288 | 267 |
| Payments for (Proceeds from) Other Operating Activities | (27) | 325 |
| Net Cash Provided by (Used in) Operating Activities, Total | 286 | 964 |
| Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
| Payments to Acquire Property, Plant, and Equipment | (85) | (364) |
| Payments to Acquire Short-term Investments | (1,697) | (1,221) |
| Proceeds from Sale of Short-term Investments | 1,144 | 1,459 |
| Net Cash Provided by (Used in) Investing Activities, Total | (638) | (126) |
| Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
| Leaseback Transaction, Gross Proceeds | 173 | 0 |
| Proceeds from Stock Plans | 4 | 11 |
| Payments for Repurchase of Common Stock | 0 | (54) |
| Payments of Long-Term Debt and Capital Lease Obligations | (35) | (19) |
| Excess Tax Benefit from Share-based Compensation, Financing Activities | (3) | 0 |
| Payments of Dividends | (7) | (7) |
| Proceeds from (Payments for) Other Financing Activities | (3) | 0 |
| Net Cash Provided by (Used in) Financing Activities, Total | 129 | (69) |
| Cash and Cash Equivalents, Period Increase (Decrease), Total | (223) | 769 |
| Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 1,368 | 2,213 |
| Cash and Cash Equivalents, at Carrying Value, Ending Balance | 1,145 | 2,982 |
| Interest Paid, Net | 36 | 25 |
| Income Taxes Paid | $1 | $6 |
Document Information
| Document Information (Unaudited) | |
| 3 Months Ended
Mar. 31, 2009 | |
| Document Information [Line Items] | |
| Document Name | Form 10Q |
| Document Type | 10-Q |
| Amendment Flag | true |
| Amendment Description | Amended to include XBRL filing |
| Document Period End Date | 2009-03-31 |
Entity Information
| Entity Information (Unaudited, USD $) | |
| 3 Months Ended
Mar. 31, 2009 | |
| Entity Information [Line Items] | |
| Entity Registrant Name | Southwest Airlines Co. |
| Entity Central Index Key | 0000092380 |
| Current Fiscal Year End Date | --12-31 |
| Entity Well-known Seasoned Issuer | Yes |
| Entity Voluntary Filers | Yes |
| Entity Current Reporting Status | Yes |
| Entity Filer Category | Large Accelerated Filer |
| Entity Common Stock, Shares Outstanding | 740,813,556 |
Notes To Financial Statements
| Notes To Financial Statements (Unaudited) | |
| 3 Months Ended
Mar. 31, 2009 | |
| Notes to Financial Statements | |
| Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements ofSouthwest Airlines Co. (Company or Southwest) have been prepared in accordancewith accounting principles generally accepted in the United States for interimfinancial information and with the instructions to Form 10-Q and Article 10 ofRegulation S-X. Accordingly, they do not include all of the information andfootnotes required by accounting principles generally accepted in the UnitedStates for complete financial statements. The unaudited condensed consolidatedfinancial statements for the interim periods ended March 31, 2009 and 2008,include all adjustments which are, in the opinion of management, necessary for afair presentation of the results for the interim periods. This includes allnormal and recurring adjustments, but does not include all of the informationand footnotes required by generally accepted accounting principles for completefinancial statements. Financial results for the Company, and airlines ingeneral, are seasonal in nature. Historically, the Company's financialperformance is better in the second and third fiscal quarters than its first andfourth fiscal quarters. However, as a result of significant fluctuations in theprice of jet fuel in some periods, the nature of the Company's fuel hedgingprogram, the periodic volatility of commodities used by the Company for hedgingjet fuel, and the accounting requirements of Statement of Financial AccountingStandards (SFAS) No. 133, "Accounting for Derivative Instruments and HedgingActivities," as amended (SFAS 133), the Company has experienced and may continueto experience significant volatility in its results in certain fiscal periods.See Note 5 for further information. Operating results for the three months endedMarch 31, 2009, are not necessarily indicative of the results that may beexpected for the year ended December 31, 2009. For further information, referto the consolidated financial statements and footnotes thereto included in theSouthwest Airlines Co. Annual Report on Form 10-K for the year ended December31, 2008. Certain prior period amounts have been reclassified to conform to the currentpresentation. In the unaudited Condensed Consolidated Balance Sheet as ofDecember 31, 2008, the Company's cash collateral deposits related to fuelderivatives that have been provided to a counterparty have been adjusted to showa "net" presentation against the fair value of the Company's fuel derivativeinstruments. The entire portion of cash collateral deposits as of December 31,2008, $240 million, has been reclassified to reduce "Other deferred liabilities." In the Company's 2008 Form 10-K filing, these cash collateraldeposits were presented "gross" and all were included as an increase to "Prepaidexpenses and other current assets." This change in presentation was made inorder to comply with the requirements of Financial Accounting Standards Board(FASB) Staff Position FIN 39-1 (FIN 39-1), which was required to be adopted bythe Company effective January 1, 2008. Following the Company's 2008 Form 10-Kfiling on February 2, 2009, the Company became aware that the requirements ofFIN 39-1 had not been prope |
| Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7.ACCRUED LIABILITIESMarch 31,December 31,(In millions)2009 2008 Retirement Plans $85 $86 Aircraft Rentals98 118 Vacation Pay178 175 Advances and deposits20 23 Fuel derivative contracts213 246 Deferred income taxes67 36 Workers compensation123 122 Other232 206 Accrued liabilities $1,016 $1,012 |
| Schedule of Common Stock by Class [Text Block] | 3.DIVIDENDS During the three months ended March 31, 2009, dividends of $.0045 per share were declared on the 740 million shares of Common Stock then outstanding. During the three months ended March 31, 2008, dividends of $.0045 per share were declared on the 731 million shares of Common Stock then outstanding. |
| Commitments and Contingencies Disclosure [Text Block] | 10. CONTINGENCIES On March 6, 2008, the Federal Aviation Administration (the "FAA") notified theCompany that it was seeking to fine the Company approximately $10 million inconnection with an incident concerning the Company's potential non-compliancewith an airworthiness directive. The Company accrued the proposed fine as anoperating expense in first quarter 2008. On March 2, 2009, the FAA and theCompany agreed to settle the matter, and other pending and potential regulatorycompliance matters, for $7.5 million. Approximately one-third of this amountwas paid in first quarter 2009, and the remainder will be paid in equalinstallments in 2010 and 2011. The Company also agreed, among other things, toimprove FAA access to information about its maintenance and engineering activities and make certain changes to its maintenance and engineering functions. Failure to perform these obligations could result in additionalfines of up to a maximum of $7.5 million. The agreement did not contain anyfinding of violation or admission of wrongdoing by the Company. In connection with the above incident, during the first quarter and early secondquarter of 2008, the Company was named as a defendant in two putative classactions on behalf of persons who purchased air travel from the Company while theCompany was allegedly in violation of FAA safety regulations. Claims alleged bythe plaintiffs in these two putative class actions include breach of contract,breach of warranty, fraud/misrepresentation, unjust enrichment, and negligentand reckless operation of an aircraft. The Company believes that the classaction lawsuits are without merit and intends to vigorously defend itself. Alsoin connection with the above incident, during the first quarter and early secondquarter of 2008, the Company received four letters from Shareholders demandingthe Company commence an action on behalf of the Company against members of itsBoard of Directors and any other allegedly culpable parties for damagesresulting from an alleged breach of fiduciary duties owed by them to theCompany. In August 2008, Carbon County Employees Retirement System and MarkCristello filed a related Shareholder derivative action in Texas state courtnaming certain directors and officers of the Company as individual defendantsand the Company as a nominal defendant. The derivative action claims breach offiduciary duty and seeks recovery by the Company of alleged monetary damagessustained as a result of the purported breach of fiduciary duty, as well ascosts of the action. A Special Committee appointed by the Independent Directorsof the Company is currently evaluating the Shareholder demands. The Company is from time to time subject to various other legal proceedings andclaims arising in the ordinary course of business, including, but not limitedto, examinations by the Internal Revenue Service (IRS). The Company's management does not expect that the outcome in any of itscurrently ongoing legal proceedings or the outcome of any proposed adjustmentspresented to date by the IRS, individually or collectively, will have a materialadverse effect on the Company's financial condition, results of operations, orcash flow. During 200 |
| Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. FINANCIAL DERIVATIVE INSTRUMENTS Fuel Contracts Airline operators are inherently dependent upon energy to operate and,therefore, are impacted by changes in jet fuel prices. Jet fuel and oil(including related taxes) consumed during the three months ended March 31, 2009and 2008, represented approximately 29 percent and 33 percent of the Company'soperating expenses, respectively. The Company's operating expenses have beenextremely volatile in recent years due to dramatic increases and declines inenergy prices. The Company endeavors to acquire jet fuel at the lowest possiblecost and to reduce volatility in operating expenses. Because jet fuel is nottraded on an organized futures exchange, there are limited opportunities tohedge directly in jet fuel. However, the Company has found that financialderivative instruments in other commodities, such as crude oil, and refinedproducts such as heating oil and unleaded gasoline, can be useful in decreasingits exposure to jet fuel price volatility. The Company does not purchase orhold any derivative financial instruments for trading purposes. The Company has used financial derivative instruments for both short-term andlong-term time frames, and typically uses a mixture of purchased call options,collar structures (which include both a purchased call option and a sold putoption), and fixed price swap agreements in its portfolio. Generally, whenprices are lower, the Company prefers to use fixed price swap agreements andpurchased call options. However, when prices are higher, the Company uses morecollar structures due to the high cost of purchased call options and theincreased risk associated with fixed price swaps. Although the use of collarstructures can reduce the overall cost of hedging, these instruments carry morerisk than purchased call options in that the Company could end up in a liabilityposition when the collar structure settles. With the use of purchased calloptions, there is no risk of the Company being in a liability position atsettlement. During most of 2008, when energy prices were generally rising, the Company had amore significant hedge volume position related to 2009 through 2013. However,as a result of the dramatic decline in energy prices during the fourth quarterof 2008, the Company significantly reduced its net hedge volumes related tothese years. In late first quarter 2009, the Company began adding to its hedgerelated to 2009 and 2010, primarily with purchased call options with abovecurrent market strike prices as of March 31, 2009. The following table providesinformation about the Company's volume of fuel hedging for the first quarter of2009, and its portfolio as of March 31, 2009, for future periods. These hedgevolumes are strictly from an "economic" standpoint and thus do not reflectwhether the hedges qualified or will qualify for special hedge accounting asdefined in SFAS 133. The Company defines its "economic" hedge as the totalvolume of fuel derivative contracts held, including the net impact of positionsthat have been effectively "settled" through offsetting positions, regardless ofwhether those contracts qualify for hedge accounting as defined in SFAS 133. Fuel hedged as Approx |
| Fair Value Disclosures [Text Block] | 11. FAIR VALUE MEASUREMENTS The Company adopted SFAS No. 157, "Fair Value Measurements" (SFAS 157) as ofJanuary 1, 2008. SFAS 157 establishes a three-tier fair value hierarchy, whichprioritizes the inputs used in measuring fair value. These tiers include: Level1, defined as observable inputs such as quoted prices in active markets; Level2, defined as inputs other than quoted prices in active markets that are eitherdirectly or indirectly observable; and Level 3, defined as unobservable inputsin which little or no market data exists, therefore requiring an entity todevelop its own assumptions. FASB Staff Position 157-2, "Effective Date of FASBStatement No. 157," applies to nonfinancial assets and nonfinancial liabilitiesand was effective January 1, 2009. The adoption of this standard had no impacton the Company in first quarter 2009. As of March 31, 2009, the Company held certain items that are required to bemeasured at fair value on a recurring basis. These included cash equivalents,short-term investments, certain noncurrent investments, interest rate derivativecontracts, fuel derivative contracts, and available-for-sale securities. Cashequivalents consist of short-term, highly liquid, income-producing investments,all of which have maturities of 90 days or less, including money market funds,U.S. Government obligations, and obligations of U.S. Government backed agencies.Short-term investments consist of short-term, highly liquid, income-producinginvestments, which have maturities of greater than 90 days but less than oneyear, including U.S. Government obligations, obligations of U.S. Governmentbacked agencies, and certain non-taxable auction rate securities. Derivativeinstruments are related to the Company's attempts to hedge fuel costs andinterest rates. Noncurrent investments consist of auction rate securitiescollateralized by student loan portfolios, which are guaranteed by the U.S.Government. Other available-for-sale securities primarily consist ofinvestments associated with the Company's Excess Benefit Plan. The Company's fuel derivative instruments consist of over-the-counter (OTC)contracts, which are not traded on a public exchange. These contracts includeboth swaps as well as different types of option contracts. See Note 5 forfurther information on the Company's derivative instruments and hedgingactivities. The fair values of swap contracts are determined based on inputsthat are readily available in public markets or can be derived from informationavailable in publicly quoted markets. Therefore, the Company has categorizedthese swap contracts as Level 2. The Company determines the value of optioncontracts utilizing a standard option pricing model based on inputs that areeither readily available in public markets, can be derived from informationavailable in publicly quoted markets, or are quoted by financial institutionsthat trade these contracts. In situations where the Company obtains inputs viaquotes from financial institutions, it verifies the reasonableness of thesequotes via similar quotes from another financial institution as of each date forwhich financial statements are prepared. The Company also considers counterparty credit ri |
| Income Tax Disclosure [Text Block] | 12. TAX RATE The Company's effective tax rate was 15.3 percent in first quarter 2009. Thislow rate in first quarter 2009 was impacted by the Company's lower expectedearnings for 2009 and the related impact that permanent tax differences have on these projections. |
| Schedule of Earnings Per Share, Diluted, by Common Class [Text Block] | 4.NET INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per share (in millions except per share amounts): Three months ended March 31, 2009 2008 NUMERATOR:Net income (loss) $(91) $34 DENOMINATOR:Weighted-average sharesoutstanding, basic 740 733 Dilutive effect of Employee stockoptions - 1 Adjusted weighted-average sharesoutstanding, diluted740 734 NET INCOME (LOSS) PER SHARE:Basic $(.12) $.05 Diluted $(.12) $.05 |
| Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. NEW ACCOUNTING PRONOUNCEMENTS In March 2008, the FASB issued statement No. 161, "Disclosures about DerivativeInstruments and Hedging Activities, an amendment of FASB Statement No. 133"(SFAS 161). SFAS 161 requires entities that use derivative instruments toprovide qualitative disclosures about their objectives and strategies for usingsuch instruments, as well as any details of credit-risk-related contingentfeatures contained within derivatives. SFAS 161 also requires entities todisclose additional information about the amounts and location of derivativeslocated within the financial statements, how the provisions of SFAS 133 havebeen applied, and the impact that hedges have on an entity's financial position,financial performance, and cash flows. The Company adopted the provisions ofSFAS 161 effective January 1, 2009. See Note 5 for the Company's disclosuresabout its derivative instruments and hedging activities. In January 2009, the FASB released Proposed Staff Position SFAS 107-b andAccounting Principles Board (APB) Opinion No. 28-a, "Interim Disclosures aboutFair Value of Financial Instruments" (SFAS 107-b and APB 28-a). This proposalamends FASB Statement No. 107, "Disclosures about Fair Values of FinancialInstruments," to require disclosures about fair value of financial instrumentsin interim financial statements as well as in annual financial statements. Theproposal also amends APB Opinion No. 28, "Interim Financial Reporting," torequire those disclosures in all interim financial statements. This proposal iseffective for interim periods ending after June 15, 2009, but early adoption ispermitted for interim periods ending after March 15, 2009. The Company plans toadopt SFAS 107-b and APB 28-a and provide the additional disclosure requirementsfor second quarter 2009. In March 2009, the FASB released Proposed Staff Position SFAS 157-e,"Determining Whether a Market Is Not Active and a Transaction Is Not Distressed"(SFAS 157-e). This proposal provides additional guidance in determining whethera market for a financial asset is not active and a transaction is not distressedfor fair value measurement purposes as defined in SFAS 157, "Fair ValueMeasurements." SFAS 157-e is effective for interim periods ending after June15, 2009, but early adoption is permitted for interim periods ending after March15, 2009. The Company plans to adopt the provisions of SFAS 157-e during secondquarter 2009, but does not believe this guidance will have a significant impacton the Company's financial position, cash flows, or disclosures. In March 2009, the FASB issued Proposed Staff Position SFAS 115-a, SFAS 124-a,and EITF 99-20-b, "Recognition and Presentation of Other-Than-Temporary Impairments." This proposal provides guidance in determining whetherimpairments in debt securities are other than temporary, and modifies thepresentation and disclosures surrounding such instruments. This Proposed StaffPosition is effective for interim periods ending after June 15, 2009, but earlyadoption is permitted for interim periods ending after March 15, 2009. TheCompany plans to adopt the provisions of this Proposed Staff Position duringsecond quarter 2009, but does not believe t |
| Postemployment Benefits Disclosure [Text Block] | 8. POSTRETIREMENT BENEFITS The following table sets forth the Company's periodic postretirement benefitcost for each of the interim periods identified: Three months ended March 31, (In millions) 2009 2008 Service cost $3 $3 Interest cost 1 1 Net periodic postretirement benefit cost $4 $4 |
| Sale Leaseback Transaction Disclosure [Text Block] | 9.SALE-LEASEBACK TRANSACTIONS In December 2008, the Company entered into a two tranche sale and leaseback transaction with a third party aircraft lessor for the sale and leaseback of ten of the Company's Boeing 737-700 aircraft. Under the first tranche of the transaction, which closed on December 23, 2008, the Company sold five of its Boeing 737-700 aircraft for a total of approximately $173 million and immediately leased the aircraft back for 12 years. Under the second tranche of the transaction, which closed on January 8, 2009, the Company sold five of its Boeing 737-700 aircraft for a total of approximately $173 million and immediately leased the aircraft back for 16 years. These sale and leasebacks resulted in a deferred gain of $21 million, which will be amortized over the respective terms of the leases. All of the leases from these sale-leasebacks are accounted for as operating leases. Under the terms of the lease agreements, the Company will continue to operate and maintain the aircraft. Payments under the lease agreements will be reset every six months based on changes in the six-month LIBOR rate. The lease agreements contain standard termination events, including termination upon a breach of the Company's obligations to make rental payments and upon any other material breach of the Company's obligations under the leases, and standard maintenance and return condition provisions. Upon a termination of the lease upon a breach by the Company, the Company would be liable for standard contractual damages, possibly including damages suffered by the lessor in connection with remarketing the aircraft or while the aircraft is not leased to another party. |
| Comprehensive Income Note [Text Block] | 6. COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) included changes in the fair value of certainfinancial derivative instruments, which qualify for hedge accounting, andunrealized gains and losses on certain investments. The differences between netincome (loss) and comprehensive income (loss) for the three month periods endedMarch 31, 2009 and 2008, were as follows: Three months ended March 31, (In millions) 2009 2008 Net income (loss) $(91) $34 Unrealized gain (loss) on derivative instruments,net of deferred taxes of $36 and ($151) 58 260Other, net of deferred taxes of $3 and $6 4 (9) Total other comprehensive income 62 251 Comprehensive income (loss) $(29) $285 A rollforward of the amounts included in "AOCI," net of taxes, is shown below: Accumulated Fuel other hedge comprehensive(In millions) derivatives Other income (loss)Balance at December 31, 2008 $(946) $(38) $(984) 2009 changes in value (52) 4 (48) Reclassification to earnings 110 - 110Balance at March 31, 2009 $(888) $(34) $(922) |
| Schedule of Subsequent Events [Text Block] | 13. SUBSEQUENT EVENTS On April 2, 2009, the Company documented and closed the first tranche of what isexpected to be a two tranche sale and leaseback transaction with a third partyaircraft lessor for the sale and leaseback of a total of six of the Company'sBoeing 737-700 aircraft. On that date, the Company sold three of its Boeing737-700 aircraft for a total of approximately $105 million and immediatelyleased the aircraft back for approximately 12 years. This sale and leasebackresulted in a deferred gain of $8 million, which will be amortized over therespective terms of the leases. Under the second tranche of the transaction,which is expected to close in second quarter 2009, the Company will sell anadditional three of its Boeing 737-700 aircraft for approximately the sameamount and terms as in the first tranche. On April 16, 2009, the Company announced Freedom '09, a voluntary earlyretirement program offered to eligible Employees, in which the Company willoffer cash bonuses, medical/dental coverage for a specified period of time, andtravel privileges based on work group and years of service. Virtually all ofthe Company's Employees hired before March 31, 2008 are eligible to participatein the program. Participants' last day of work is expected to fall between July15, 2009 and April 15, 2010, based on the operational needs of particular worklocations and departments, which is to be determined. The Company does not havea target or expectation for the number of Employees expected to accept thepackage. The Company expects to determine the accounting for charges incurred withFreedom '09 and be able to estimate the cost of termination benefits in secondquarter 2009. Depending on the number of eligible Employees who accept theoffer, it may be necessary to replace a portion of the positions with newlyhired Employees to meet operational demands. Some of the positions will notneed to be filled based on the Company's recent capacity reductions. Thepurpose of this voluntary initiative and other initiatives is to reduceheadcount in conjunction with the Company's current plans to reduce its capacityby five percent in 2009 and to help reduce costs. |