Southwest and Union Ratify Contract Extension

Southwest Airlines` Ramp, Operations, Provisioning and Freight Agents, represented by the Transport Workers Union of America, ratified an agreement extending their contract, which formerly became amendable on June 30, 2006, through June 30, 2008. The contract extension provides stock options, to be granted at fair market value of Southwest Airlines stock on the date of ratification.

“Our dedicated and entrepreneurial Employees have, once again, shown their belief in the future of Southwest Airlines,” said Southwest CEO and Vice Chairman of the Board Jim Parker. “The success and profitability of Southwest Airlines has meant job security, growth, and Profitsharing for our Employees. Their superb and Legendary Customer Service to our Customers, and to each other, ensures the continuing strength of Southwest Airlines.”