DALLAS, Aug. 19 /PRNewswire-FirstCall/—Southwest Airlines Co.
(NYSE: LUV) announced today that the members of the Southwest Airlines Pilots
Association (SWAPA) have approved a two-year extension to their agreement with
the Company, which was scheduled to become amendable on September 1, 2004.
The extended agreement, which now becomes amendable on September 1, 2006,
offers the Pilots annual pay raises, a portion of which will be pay raises
based on the profitability of the Company, and additional options to purchase
39.2 million shares of Southwest Airlines Common Stock at today`s average
trading price of $12.835.  The majority of the options will vest during the
2004-06 timeframe.

James F. Parker, Vice Chairman and Chief Executive Officer, stated: “Our
visionary, entrepreneurial Pilots have shown, once again, that they are
prepared to lead Southwest Airlines through the unprecedented turbulence
facing our Company and our industry.”

This press release, as well as past releases, can be accessed on the
Southwest Airlines internet site at: http://www.southwest.com .

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