Southwest Airlines Announce Agreement

DALLAS, Aug. 30 /PRNewswire-FirstCall/—A tentative agreement has been
reached between the International Brotherhood of Teamsters Southwest Airlines
Mechanics Negotiating Committee and the Company, subject to Ratification by
the Mechanics of Southwest Airlines (NYSE: LUV).  A Majority of the Committee
recommends Ratification.

If Ratified, the contract will extend through August 16, 2005; will
include pay raises, with full retroactive pay from August 16, 2001; and will
include stock options vesting over the term of the agreement.

By order of the Federal Mediators, no further details will be released
pending finalization of documentation of the tentative agreement.