Southwest Airlines Declares 3-for-2 Stock Split And Increases Dividend

Southwest Airlines` (NYSE: LUV) Board of
Directors, at its meeting held January 18, declared a 3-for-2 stock split of
the Company`s common stock and also increased the quarterly dividend.
 
The 3-for-2 stock split will be distributed on February 15, 2001 to
Shareholders of record at the close of business on January 26, 2001.  This
stock split will result in a 50 percent increase in the number of common
shares outstanding as of the record date, with cash being paid in lieu of
fractional shares.  As of January 16, 2001, before the effects of this stock
split, there were 507,896,539 shares outstanding.

Herbert D. Kelleher, Chairman, President, and Chief Executive Officer,
stated:  “Southwest Airlines has been extremely fortunate and is very grateful
for its financial success and continued profitable growth.  Also, we are
extremely gratified with Standard & Poor`s recent announcement upgrading our
senior unsecured debt rating to “A,” the best in the airline industry.  In
recognition of, and in gratitude for, the contributions of our
Employee-Shareholders and for the loyal support of our non-Employee
Shareholders, our Board of Directors has just approved a 3-for-2 stock split
to be distributed on February 15, 2001 to Shareholders of record as of the
close of business on January 26, 2001.
 
“The Board of Directors also increased our regular dividend 22.7 percent
beginning with the dividend declared today and payable to Shareholders of
record at the close of business on March 2, 2001.  The dividend will be
adjusted to $.0045 per share quarterly on the increased number of shares
outstanding, a 22.7 percent increase after taking into effect the 3-for-2
stock split.  This 98th consecutive dividend will be paid on March 27, 2001.”
 
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