Southwest and Machinists Ratify Contract

DALLAS, Jan. 29 /PRNewswire-FirstCall/—Southwest Airlines` (NYSE: LUV) 10,000 Customer Service and Reservation Agents represented by the International Association of Machinists and Aerospace Workers (IAMAW), today ratified an agreement extending their contract through November 2008. The contract will include pay increases and stock options.

“Our Employees have, once again, shown their commitment to the future of Southwest Airlines,” said 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, and I believe our Employees are determined to continue that success. We are blessed to have the most dedicated, caring, and entrepreneurial group of Employees in the world,” Parker said.