92380--2/1/2007--SOUTHWEST_AIRLINES

related topics

{cost, operation, labor}

{cost, contract, operation}

{operation, natural, condition}

{system, service, information}

{competitive, industry, competition}

{condition, economic, financial}

Southwest s business is labor-intensive; we could be adversely affected if we are unable to maintain satisfactory relations with any unionized or other Employee work group. Southwest s business is affected by many changing economic and other conditions beyond its control. Southwest relies on technology to operate its business, and any failure of these systems could harm the Company. The travel industry continues to face on-going security concerns and cost burdens; further threatened or actual terrorist attacks, or other hostilities, could significantly harm our industry and our business. Airport capacity constraints and air traffic control inefficiencies could limit the Company s growth; changes in or additional governmental regulation could increase the Company s operating costs or otherwise limit the Company s ability to conduct business. The airline industry is intensely competitive. Southwest s low cost structure is one of its primary competitive advantages, and many factors could affect the Company s ability to control its costs.

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92380--2/1/2007--SOUTHWEST_AIRLINES_CO