92380--2/4/2008--SOUTHWEST_AIRLINES_CO

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{cost, operation, labor}
{system, service, information}
{cost, contract, operation}
{operation, natural, condition}
{condition, economic, financial}
Southwest s business is labor-intensive; Southwest could be adversely affected if it were unable to maintain satisfactory relations with any unionized or other Employee work group. Southwest s business is affected by many changing economic conditions and other conditions beyond its control. The Company relies on technology to operate its business and continues to implement substantial changes to its information systems; any failure or disruption in the Company s systems could adversely impact the Company s operations. The Company s inability to successfully implement its revenue initiatives could adversely affect its results of operations. 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 the Company s industry and its 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.

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