EXHIBIT 99.1

Exhibit 99.1


CONTACT: Investor Relations (214) 792-4415

SOUTHWEST AIRLINES REPORTS THIRD QUARTER 2005 EARNINGS;
EXCEEDS FIRST CALL MEAN ESTIMATE

DALLAS, TEXAS - October 20, 2005 - Southwest Airlines (NYSE:LUV) today
reported third quarter 2005 net income of $227 million, or $.28 per diluted
share, compared to $119 million for third quarter 2004, or $.15 per diluted
share. The Company's third quarter 2005 results included $87 million (before
income taxes) in unrealized gains, included in "Other gains", associated with
derivative instruments that will settle in future accounting periods,
recorded as a result of Statement of Financial Accounting Standard 133 (SFAS
133), "Accounting for Derivative Instruments and Hedging Activities," as
amended. Excluding these unrealized gains, third quarter 2005 net income
was $174 million, or $.21 per diluted share. These third quarter 2005
results compare favorably to the First Call mean estimate of $.18 per diluted
share.
Gary C. Kelly, CEO, stated: "We are very pleased with our third quarter
2005 earnings performance. Excluding unrealized SFAS 133 gains, our third
quarter 2005 earnings were up 46.2 percent to $174 million. This quarter was
affected by two enormously destructive hurricanes, Katrina and Rita. The
response by our Employees in the face of these crises was nothing short of
remarkable. Their heroic efforts make these results very special, and I am
very grateful to all our Employees for a tremendous performance.
"The third quarter 2005 earnings growth was driven by record passenger
revenues and load factors. We also benefited from strong performances in
freight, charters, and business partner commissions. Operating revenues
increased 18.8 percent versus a year ago, or 5.9 percent per available seat
mile (ASM). The industry demand environment has improved, and the strong
demand for our industry-leading low fares and high quality Customer Service
resulted in a record third quarter load factor performance of 74.9 percent,
at improved yields. We were able to drive robust revenue growth with only
modest fare increases securing our Low Fare Brand leadership. We also
benefited from a reduction in the glut of competitive seat capacity. We were
very pleased with ATA codeshare third quarter 2005 results, which generated
$19 million in revenues. ATA continues to reorganize in Chapter 11, and is
seeking exit financing. As part of its reorganization efforts, ATA
recently announced it will be discontinuing service in Chicago Midway to
Minneapolis, Newark, and Boston in fourth quarter 2005. While our codeshare
activity will decline, as a consequence, we will pursue opportunities to
continue Southwest's growth at Midway. We have been pleased with our
expansion efforts at Midway this year.
"With respect to fourth quarter 2005, we are enjoying favorable load
factor trends in October, and Customer bookings for the remainder of fourth
quarter 2005 are good. We are hopeful year over year unit revenue trends
will continue to improve as they did throughout third quarter 2005.
"We continue to mitigate record-high jet fuel prices with our successful
hedging program, which resulted in a $295 million benefit from settled
contracts in third quarter 2005. We are also approximately 85 percent hedged
in fourth quarter 2005 with average crude prices capped in the $26 per barrel
range and have hedged the refinery margins on the majority of those
positions. However, given the unprecedented surge in Gulf Coast jet fuel
prices following Hurricanes Katrina and Rita, we expect fourth quarter 2005

jet fuel costs per gallon to be well above the third quarter 2005 jet fuel
cost per gallon of 95 cents. Unless Gulf Coast jet fuel prices recede from
current levels, our fourth quarter 2005 jet fuel cost per gallon could exceed
$1.25. We are more than 70 percent hedged for 2006 with average crude prices
capped in the $36 per barrel range and also have hedged the refinery margins
on the majority of our 2006 positions. We are over 55 percent hedged in 2007
at approximately $37 per barrel; about 35 percent in 2008 at approximately
$37 per barrel; and about 30 percent in 2009 at approximately $39 per barrel.
In short, we are well-prepared for rising energy costs. Our People are
taking aggressive actions to prepare for rising energy costs and sustain our
profitability and financial health.
"Excluding fuel, our third quarter 2005 unit costs were down, again,
compared with the year ago performance. We revised our fourth quarter 2005
flight schedule for the significant reduction in our New Orleans service
following Hurricane Katrina. Our fourth quarter 2005 flight schedule was
also affected by the recent Boeing strike, which delayed scheduled new
aircraft deliveries. As a result, our year-over-year capacity growth for
fourth quarter 2005 will be approximately seven percent, less than previously
planned. We expect our fourth quarter 2005 unit costs, excluding fuel, to
modestly exceed third quarter's 6.31 cents.
"Our hearts go out to all those affected by the hurricanes in the Gulf
Coast region. We resumed service from Louis Armstrong New Orleans
International Airport (MSY) on September 20th after it had been shut down for
approximately three weeks. Prior to Hurricane Katrina, we were the largest
air carrier with 57 daily departures. We currently operate four daily
roundtrips to Houston Hobby Airport, with strong traffic and encouraging
bookings. As a part of the New Orleans community, we are anxious to do our
part to rebuild the city, and we will continue to add more flights based on
demand. We are very proud of our Employees' efforts to serve our Customers
in this stressful time. Finally, I am also very proud of how Southwest and
our Employees took care of our Gulf Coast Employees in this time of need.
"We are very pleased with the performance of our new Pittsburgh markets
and our new Ft. Myers service, which began this month. Given the improving
airline industry outlook, we are excited about our 2006 growth opportunities
and, currently, we expect 33 Boeing 737-700 deliveries in 2006, which will
result in an estimated 2006 ASM capacity growth of approximately eight
percent. With the resumption of deliveries from Boeing, and the availability
of aircraft created from Katrina-related schedule changes, we are
accelerating the start-up of our previously planned new city next year to
early 2006. I am very excited to announce that, after a 20-year absence,
Southwest will return to Denver, Colorado. As a result of its efforts to
dramatically reduce its costs over the years, Denver International Airport
has emerged as an excellent opportunity for Southwest Airlines. Even
better, our Customers, along with new Denver Customers, will benefit from
lower fares and Positively Outrageous Customer Service, Southwest style. We
will announce our start dates, schedule, and fares next week."
Southwest will discuss its third quarter 2005 results on a conference
call at 11:30 a.m. Eastern Time today. A live broadcast of the conference
call will be available at southwest.com.

Operating Results
Total operating revenues for third quarter 2005 increased 18.8 percent
to $1.99 billion, compared to $1.67 billion for third quarter 2004.
Operating income was $273 million compared to $191 million in third quarter
2004. Revenue passenger miles (RPMs) increased 15.5 percent in third quarter
2005, as compared to a 12.1 percent increase in available seat miles (ASMs),

resulting in a 2.2 point increase in load factor to 74.9 percent. The
passenger revenue yield per RPM increased 2.6 percent to 11.68 cents
from 11.38 cents in third quarter 2004. Operating revenue yield per ASM
(RASM) increased 5.9 percent to 9.10 cents from 8.59 cents in third quarter
2004.
Total third quarter 2005 operating expenses were $1.72 billion, an
increase of 15.7 percent, compared to $1.48 billion in third quarter 2004.
Operating expenses per ASM (CASM) for third quarter 2005 increased 3.2
percent to 7.85 cents, compared to 7.61 cents in third quarter 2004. The
Company's hedging program produced realized gains in third quarter 2005 of
$295 million. Gains of $276 million were recorded as a reduction in fuel and
oil expense in third quarter 2005. The remainder of the realized gains were
recorded in "Other gains," as described below. Excluding fuel, CASM for
third quarter 2005 decreased slightly to 6.31 cents.
In addition to the $87 million of SFAS 133 unrealized gains recorded in
third quarter 2005, "Other expenses (income)" included $17 million in "other
gains," which consisted primarily of SFAS 133 realized gains related to
settled contracts, as defined, on current period hedges, partially offset by
approximately $9 million of net interest expense. "Other expenses (income)" for
third quarter 2004 included $4 million in "Other losses" and $6 million in net
interest expense. The third quarter 2005 income tax rate was 38.3 percent
versus 34.1 percent for third quarter 2004. The prior year rate was favorably
impacted by an adjustment related to the ultimate resolution of an airline
industry-wide issue regarding the tax treatment of certain aircraft engine
maintenance costs.
For the nine months ended September 30, 2005, net cash provided by
operations was $2.2 billion, which included a $865 million increase in fuel
hedge-related collateral deposits, and capital expenditures were $993
million. The Company ended third quarter 2005 with $2.4 billion cash on hand
plus $185 million of auction-rate securities, classified as "Short-term
investments". In addition, the Company had a fully available unsecured
revolving credit line of $600 million.
Total operating revenues for the nine months ended September 30, 2005
increased 14.8 percent to $5.60 billion while total operating expenses
increased 11.3 percent to $4.94 billion, resulting in operating income of
$656 million, compared to $435 million for the nine-month period in 2004. Net
income for the nine-month period in 2005 was $462 million, or $.57 per
diluted share, versus $258 million, or $.32 per diluted share, in 2004.
Excluding the impact of the unrealized SFAS 133 gains recorded in third
quarter 2005, net income for the nine months ended September 30, 2005 was
$409 million, or $.50 per diluted share.
This news release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. All forward-looking
statements involve risks and uncertainties that could cause actual results to
differ materially from the plans, intentions, and expectations reflected in
or suggested by the forward-looking statements. Additional information
concerning the factors which could cause actual results to differ materially
from the forward-looking statements are contained in the Company's periodic
filings with the Securities and Exchange Commission, including without
limitation, the Company's Annual Report on Form 10-K for the year ended 2004
and subsequent filings. The Company undertakes no obligation to publicly
update or revise any forward-looking statements to reflect events or
circumstances that may arise after the date of this press release.

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