#1Heartone Southweston Southwest.com Southwest Airlines Co. October 21, 2021- Investor Booklet N8642E 000000000000#2Cautionary Statement Regarding Forward-Looking Statements This booklet contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company's Vision; (ii) the Company's financial position, outlook, goals, expectations, strategies, and projected results of operations; (iii) the Company's network plans, expectations, and opportunities; (iv) the Company's initiatives and related plans and expectations, including with respect to its fleet modernization plans and environmental sustainability goals; (v) the Company's expectations with respect to the benefits associated with its voluntary separation and extended leave programs; (vi) the Company's expectations with respect to capital expenditures; and (vii) the Company's plans and expectations regarding its fleet, including with respect to its fleet delivery schedule and planned retirements. These forward-looking statements are based on the Company's current intent, expectations, and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) any negative developments related to the COVID-19 pandemic, including, for example, with respect to the duration, spread, severity, or any recurrence of the COVID-19 pandemic or any new variant strains of the underlying virus; the effectiveness, availability, and usage of COVID-19 vaccines; the impact of the recent vaccine Executive Order and other governmental actions on the Company's business plans and its ability to retain key Employees; the extent of the impact of COVID-19 on overall demand for air travel and the Company's related business plans and decisions; and the impact of the COVID-19 pandemic on the Company's access to capital; (ii) the impact of labor matters on the Company's business decisions, plans, and strategies; (iii) the Company's dependence on Boeing with respect to the Company's operations, strategies, and goals; (iv) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (v) the impact of fears or actual outbreaks of other diseases, extreme or severe weather and natural disasters, actions of competitors (including, without limitation, pricing, scheduling, capacity, and network decisions, and consolidation and alliance activities), governmental actions, fuel prices, consumer perception, economic conditions, fears of terrorism or war, and other factors beyond the Company's control, on consumer behavior and the Company's results of operations and business decisions, plans, strategies, and results; (vi) the Company's dependence on third parties, in particular with respect to its fuel supply, carbon emissions strategies, the production, transport, storage, and distribution of sustainable aviation fuel, and corporate travel enhancements, and the impact on the Company's operations and results of operations of any third party delays or non-performance; (vii) the Company's dependence on its workforce, including its ability to employ sufficient numbers of qualified Employees to effectively and efficiently maintain its operations; (viii) the impact of legislative and regulatory activity related to carbon emissions, in particular with respect to sustainable aviation fuel tax credits and compliance requirements; (ix) the Company's ability to timely and effectively implement and maintain the necessary processes to support the utilization of sustainable aviation fuel; (x) the Company's and Boeing's dependence on other third-party providers to perform in accordance with expectations in connection with the manufacture and delivery of aircraft; and (xi) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. Notice Regarding Third Party Content This presentation may contain information obtained from third parties, including ratings from credit ratings agencies such as S&P Global Ratings. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third party content providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use. Third party content providers shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs or losses caused by negligence) in connection with any use of their content, including ratings. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice. 2 Southwest'#33 Company Overview Southwest'❤#4Purpose and Vision Purpose: Connect people to what's important in their lives through friendly, reliable, low-cost air travel. Vision: To become the world's most Invest in airplanes and People to grow and develop market leadership Deliver an efficient operation with a highly- engaged workforce loved, most efficient, and most profitable airline. Generate profit and strengthen financial position 4 Offer Customers low fares, convenient flights, and industry- leading Customer Service Drive Customer loyalty and grow share of wallet Our successful business model starts with an efficient operation and highly-engaged Employees. This combination makes Southwest unique and has produced the U.S. airline industry's most successful low-cost, low-fare, growth carrier for nearly five decades Southwest'#55 Unparalleled brand consistently loved by Customers Unmatched profitability record in the U.S. airline industry with cost discipline and a strong balance sheet Outstanding Customer Service and Hospitality that drives brand loyalty and recognition The best People and Culture in the industry Low fares and a robust point-to-point network that support market leadership and non-stop service Reliable, efficient, low-cost operations Southwest'#6Robust point-to-point, non-stop route network 6 2010 2021 2021 Mapbox © OpenStreetMap Including the AirTran acquisition in 2011, added 52 airports to the Southwest route network since 2010, with 14 near-international destinations in 10 countries Source: Diio Mi. Diio scheduled for FY2021 as of 10/21/21. Note: Includes some seasonal/less than daily routes Southwest#7Announced 18 new airports Pursuing new revenue opportunities by enhancing options in large metro areas and adding new leisure destinations New airport map with service launch date Airports announced in 2020 and 2021 BLI Bellingham, WA 11/7/21 EUG Eugene, OR New airport timeline By service start date ΜΙΑ 11/15/2020 PSP 11/15/2020 HDN 12/19/2020 MTJ 12/19/2020 8/29/21 ✔ Seasonal MTJ Telluride, CO BZN Bozeman, MT 5/27/21 ✔ SYR Syracuse, NY 11/14/21 ORD 2/14/2021 SRQ 2/14/2021 Seasonal COS 3/11/2021 12/19/20✔ FAT Fresno, CA 4/25/21 ✔ HDN Steamboat Springs, CO 12/19/20✔ ORD Chicago (O'Hare), IL 2/14/21 ✔ SAV 3/11/2021 IAH 4/12/2021 SBA 4/12/2021 SBA Santa Barbara, CA 4/12/21 ✔ COS Colorado Springs, CO 3/11/21 ✓ FAT 4/25/2021 MYR Myrtle Beach, SC 5/23/21 ✔ VPS 5/6/2021 MYR 5/23/2021 PSP Palm Springs, CA 11/15/20 ✔ JAN Jackson, MS 6/6/21 ✓ BZN 5/27/2021 JAN 6/6/2021 IAH Houston (Bush), TX 4/12/21 ✔ SAV Savannah, GA 3/11/21 ✔ EUG 8/29/2021 VPS Destin, FL 5/6/21 ✓ BLI 11/7/2021 MIA Miami, FL 11/15/20✔ SYR 11/14/2021 City access via co-terminals¹ New sources of origin Customers Leisure destinations SRQ Sarasota, FL 2/14/21 ✓ 7 1Co-terminal: Airports that share a common city or region; for example, Baltimore, Washington Reagan, and Washington Dulles are considered co-terminals to one another. Southwest'#8Strong presence in top business and leisure markets Market leader in top 50 U.S. metro areas¹ 8 24 9 6 4 2 2 2 jetBlue American Airlines Legacy LCC spirit LESS MONEY. MORE GO. ULCC Southwest has 22% of total domestic market share and is the market leader in 24 of the top 50 U.S. metro areas¹ (including co-terminal airports²). International operations represent <5% of total capacity³ Source: Data presented herein as measured by the U.S. DOT O&D Survey for the twelve months ended June 30, 2021 based on domestic originating passengers boarded. O&D stands for Origin and Destination. ¹Metro areas: A geographic area around a city that includes multiple major airports. In some cases, the airports within a metro area may serve separate markets. 2Co-terminal: Airports that share a common city or region; for example, Baltimore, Washington Reagan, and Washington Dulles are considered co-terminals to one another. 3As of September 30, 2021. Southwest'#9Financial preparedness has been our enduring strength Southwest remained profitable for 47 consecutive years through 2019, prior to the COVID-19 pandemic. Our preparedness was due to a balanced approach: Financial • Investment-grade balance sheet • Ample cash and modest debt • Sensible financial commitments • Consistent Shareholder returns 9 • Operations Prudent investments and growth rate • Balance between market expansion opportunities, operational reliability, and financial returns Strategy • Robust point-to- point, non-stop network • Sustainable business model • • All Boeing 737 fleet • Reliable, efficient operations • Culture Low-cost mindset with focus on Culture and empowering Employees History of no pay cuts, furloughs, or layoffs Southwest entered the COVID-19 crisis prepared with the U.S. airline industry's strongest balance sheet and business model; tremendous fleet flexibility; meaningful fuel hedging protection with no floor risk; and ability to be nimble in uncertain environments Southwest'#10Updating strategic plan In process of updating strategic plan with initiatives for next five years 10 Aggressive expansion of our route network, having opened or announced 18 new airports since the pandemic began Launch of Global Distribution System (GDS) access for corporate travelers Acceleration of fleet modernization to replace older 737-700 aircraft with the MAX, reduce carbon emissions intensity Development of steps to support environmental sustainability goal to be carbon neutral by 2050 Southwest#1111 Recent Updates Southwest'❤#12Steps taken in 2020 to address impacts from COVID-19 Focus Areas Capacity Reduce Costs Preserve Liquidity and Cash New Revenue Opportunities Employees and Customers Actions • Significantly reduced capacity Continuously monitored demand and booking trends and adjusted capacity on an ongoing basis • Reduced annual 2020 cash outlays and spending by ~$8 billion compared with original plans • Voluntary Separation Program and Extended Emergency Time Off Program; approximately 25% of workforce participated resulting in approximately $1.0 billion in estimated cost savings in 2021 • Canceled or deferred hundreds of capital spending projects, cut discretionary spending, and modified vendor and supplier payment terms • Reduced combined 2020 and 2021 CapEx by ~$5.5B compared with original plans . • • Raised $18.9 billion (net of transaction fees) in 2020: $13.4 billion in debt issuances and sale- leaseback transactions, $2.2 billion through a common stock offering, and $3.4 billion of PSP proceeds¹ Repaid $5.5 billion of debt during 2020; Fully available $1.0 billion revolving credit line Pursued additional revenue opportunities that utilized idle aircraft and Employees • Added a total of 18 new airports that have either been opened or announced since the beginning of the pandemic • GDS participation live with Travelport and Amadeus; Sabre is live as of July 26, 2021 • ⚫ Southwest Promise-additional cleaning practices; physical-distancing procedures; required face masks; additional policies for our Employees to protect themselves and safely transport our Customers; science-based approach • Customer policy changes: extended flight credits and status ¹Amounts received pursuant to the Payroll Support Program (the "PSP") under the CARES Act were utilized to directly offset payroll expenses incurred by the Company, including specified benefits, between April 2020 and September 2020. For further information regarding the PSP, refer to the Company's Forms 8-K filed April 21, 2020, June 1, 2020, June 30, 2020, July 31, 2020, and September 30, 2020. In January 2021, the Company entered into definitive documentation with the U.S. Treasury for further payroll support under the Consolidated Appropriations Act, 2021 (the "PSP Extension"). Refer to the Company's Forms 8-K filed on January 15, 2021 and March 5, 2021 for further information regarding the PSP Extension. In April 2021, the Company entered into definitive 12 documentation with the U.S. Treasury with respect to funding support pursuant to the American Rescue Plan Act of 2021 (the "ARP"). Refer to the Company's Form 10-Q filed on April 27, 2021, Form 8-K filed on June 3, 2021, Form 10-Q filed on July 27, 2021, and Form 10-Q filed on October 26, 2021, for further information regarding funding under the ARP. Southwest#13Third quarter 2021 financial results 161.0% (17.0)% Operating revenues, y/y & y/2y $446M $(135)M Net income (loss), GAAP and Non-GAAP1 $77M Profitsharing 46.4% (1.6)% Available seat miles, y/y & y/2y $0.73 $(0.23) Income (loss) per diluted share, GAAP and Non-GAAP1 80.7% Load factor 78.0% (15.7)% RASM, y/y & y/2y (16.1)% 3.5% Non-fuel CASM1,2, y/y & y/2y $17.0B Liquidity³ 1Excluding special items. 2Excluding profit sharing. ³Includes approximately $16.0 billion in cash and short-term investments and a fully available secured revolving credit line of $1.0 billion. 13 Note: Refer to the Company's Form 8-K filed on October 21, 2021, for further information. Note: See reconciliation of reported amounts to non-GAAP financial measures. Southwest'#14Restructured Boeing 737 order book As of October 21, 2021 The Boeing Company 737 -7 firm -8 firm 14 orders orders -7 or -8 options Additional -8s Total 2021 19 -- 9 28 (a) 2022 72 2023 38 880 N 42 114 (b) 52 90 (c) 2024 2025 ww 30 56 86 30 56 86 2026+ 80 130 46 256 Total 250 (d) 149 (e) 252 9 (f) 660 Our restructured order book allows us to preserve the low-cost advantages of a single fleet type, and the balance of firm orders and options-along with flexibility with 737-700 retirement plans-allows the opportunity to manage our fleet needs over the next decade Note: As of October 21, 2021, and is not being updated herein. (a) All 28 -8s were delivered as of September 30, 2021, consisting of 19 owned and 9 leased aircraft. (b) The Company exercised eight -7 options for delivery in 2022 during third quarter 2021. (c) The Company exercised eight -7 options for delivery in 2023 on October 1, 2021. (d) The delivery schedule for the -7 is dependent on the FAA issuing required certifications and approvals to Boeing and the Company. The FAA will ultimately determine the timing of the -7 certification and entry into service, and the Company therefore offers no assurances that current estimations and timelines are correct. (e) The Company has flexibility to designate firm orders or options as -7s or -8s, upon written advance notification as stated in the contract. (f) These 9 additional -8 aircraft are leases acquired from various third parties and delivered as of September 30, 2021. Southwest'#15The Southwest Promise A multi-layered approach to protecting public health ▲ Prior to check-in, Customers must indicate their fitness to fly via a Health Declaration Electrostatic Spraying Disinfectant kills viruses on contact and an anti-microbial shield is applied at least every 30 days Hand sanitizer available in airports and disinfecting wipes available for Customers onboard ˇ Manual deep cleaning of the aircraft from nose to tail - performed nightly E HEPA HEPA air filters (kills 99.97% of airborne particles) - similar to technology found in hospitals Manual cleaning of airport service counters and kiosks daily Customers and Employees are required to wear face coverings at all times 15 Southwest Southwest'#16Sustaining a strong financial position for the future Cash and short-term investments of $16.0 billion as of September 30, 2021, and a fully available revolving credit facility of $1.0 billion Maintained unencumbered assets with an estimated value of more than $11 billion, including $9.0 billion to $9.5 billion in aircraft Net cash position¹ of $4.8 billion, and leverage of 56 percent Maintained investment-grade rating for 30+ years and is currently the only U.S. airline with an investment-grade rating by all three rating agencies ➤ Repaid approximately $188 million in debt and finance lease obligations during third quarter 2021, including the extinguishment of $80 million in principal of our convertible notes for a cash payment of $121 million Based on the current cost outlook, and despite the current momentum in revenue trends, the Company does not expect to be profitable in fourth quarter 2021 16 Southwest' ¹Net cash position is calculated as the sum of cash and cash equivalents and short-term investments, less the sum of short-term and long-term debt.#17Sustained high net margins prior to COVID-19 15% 10% 2019 net margin 5% 10.3% 10.1% 7.0% 3.7% 0% ______ Legacy 8.8% 7.9% 7.0% 17 Source: Based on company research calculated as net income divided by operating revenues, as reported in each respective airline's 2019 Form 10-K. LCC 12.6% 8.8% jetBlue __ __ ULCC S Southwest'#18(in cents) 18 Proven ability to maintain reliable operations and control costs Domestic operating expenses per ASM, ex-fuel 30.00 25.00 $20.00 15.00 10.00 5.00 Southwest -Legacy¹ -LCC 2 -ULCC³ 2012 Southwest business model and point-to-point network provide 2021 sustainable, long-term unit cost advantages compared with the majority of the domestic airline industry ¹Legacy airlines: American, US Airways (pre-merger), Delta, Continental, United 2LCC airlines: JetBlue, Alaska, Virgin America 3ULCC airlines: Spirit, Allegiant, Frontier (note: Frontier began its restructuring into an ULCC in 2013) Source: DOT form 41 and T100 data, through June 30, 2021. 2012 is as of 4Q12; 2021 is as of 2Q21. Estimated unit costs have been stage-length adjusted to Southwest's average 2017 stage-length, represents domestic mainline. Southwest'#19Leading the U.S. airline industry in Customer Service In 2020... Southwest produced the best Customer Satisfaction ranking among Marketing Carriers Southwest produced its best annual ontime performance since 2003 Customer Satisfaction ranking among Marketing Carriers Southwest generated its best-ever annual baggage handling results Southwest 2018 #1 2019 2020 #1 #1 19 Alaska Airlines ADELTA UNITED American Airlines jetBlue allegiant spirit FRONTIER HAWAIIAN AIRLINES Southwest has set the bar high for customer satisfaction, earning the DOT's best ranking among Marketing Carriers for 27 of the past 30 years Source: Department of Transportation (DOT) Air Travel Consumer Report (ATCR). The DOT ranks all U.S. carriers based on the lowest ratio complaints per 100,000 passengers enplaned. Note: Southwest earned the best Customer Satisfaction ranking among U.S. Marketing Carriers with the lowest ratio of complaints to the DOT per 100,000 enplaned passengers for 2018, 2019, and 2020. A Marketing Carrier is an airline that advertises under a common brand name, sells reservations, manages frequent flyer programs, and is ultimately responsible for the airline's consumer policies. Operating Carriers only handle the flight operations, passenger check-in/boarding, and baggage handling for the respective Marketing Carriers they serve- Operating Carriers are not responsible for DOT complaints related to policies, procedures, and advertising associated with the Marketing Carrier's brand. Southwest#20Pillars of our strength position us strongly amidst impact from COVID-19 pandemic 5 6 Robust Network with Strong Presence in Many Attractive Metro Areas Unparalleled Brand and Customer Loyalty with Award-Winning Rapid Rewards Program 20 20 Highly Defensible, Low Fare, Point-to-Point Network Large Fleet of Modern Boeing 737s, Industry 'Workhorses', a Substantial Portion of Which are unencumbered Proven Ability to Maintain Reliable Operations and Control Costs & Capex Organic Growth Opportunities: New Destinations, Densifying Existing Network, Reservation System, and GDS1 Commitment to Strong Balance Sheet with Sustainable Debt Balance and Significant Liquidity 1Global Distribution System Southwest'#21Proven Leadership Team GARY C. KELLY Chairman of the Board & Chief Executive Officer 34 years at Southwest BOB JORDAN Executive Vice President and Incoming Chief Executive Officer 33 years at Southwest MIKE VAN DE VEN President & Chief Operating Officer 28 years at Southwest 21 21 ANDREW WATTERSON Executive Vice President and Chief Commercial Officer 7 years at Southwest TAMMY ROMO Executive Vice President & Chief Financial Officer 30 years at Southwest MARK SHAW Executive Vice President, Chief Legal and Regulatory Officer 21 years at Southwest ALAN KASHER Executive Vice President Daily Operations 21 years at Southwest LINDA RUTHERFORD Executive Vice President People & Communications and Chief Communications Officer 29 years at Southwest Southwest'❤#22Non-GAAP reconciliation in millions, except per share amounts Three months ended September 30, 2019 2020 2021 Fuel and oil expense, unhedged Add: Premium cost of fuel contracts designated as hedges 1,070 $ 20 372 $ 999 13 14 Add (Deduct): Fuel hedge (gains) losses included in Fuel and oil expense, net Fuel and oil expense, as reported (6) (23) 1,090 379 $ 990 Add: Contracts settling in the current period, but for which losses were reclassified from AOCI 6 5 Add: Premium cost of fuel contracts not designated as hedges 11 11 Fuel and oil expense, excluding special items (economic) $ 1,090 $ 396 $ 1,006 Total operating expenses, as reported 4,820 $ 3,204 $ 3,946 Add: Fuel contracts settling in the current period, but for which losses were reclassified from AOCI 6 5 Add: Premium cost of fuel contracts not designated as hedges 11 11 Add: Payroll support and voluntary Employee programs, net 149 776 Total operating expenses, excluding special items 4,820 $ 3,370 $ 4,738 Deduct: Fuel and oil expense, excluding special items (economic) (1,090) Operating expenses, excluding Fuel and oil expense and special items 3,730 $ (396) 2,974 $ (1,006) 3,732 Deduct: Profitsharing expense (144) (77) Operating expenses, excluding profitsharing, Fuel and oil expense and special $ 3,586 $ 2,974 $ 3,655 items 22 22 Southwest'#23Non-GAAP reconciliation (continued) in millions, except per share amounts Net income (loss), as reported Deduct: Fuel contracts settling in the current period, but for which losses were reclassified from AOCI Add: Mark-to-market impact from fuel contracts settling in current and future periods Deduct: Payroll support and voluntary Employee programs, net Add: Loss on partial extinguishment of convertible notes Add (Deduct): Net income (loss) tax impact of special items, excluding GAAP to Non- GAAP tax rate difference (a) Net income (loss), excluding special items Net income (loss) per share, diluted, as reported Add (Deduct): Impact of special items Add: Net income (loss) tax impact of special items, excluding GAAP to Non-GAAP tax rate difference (a) Deduct: GAAP to Non-GAAP diluted weighted average shares difference (b) Net income (loss) per share, diluted, excluding special items Three months ended September 30, 2021 446 (5) 3 (776) 12 185 (135) 0.73 (1.25) 0.30 (0.01) (0.23) 23 (a) Tax amounts for each individual special item are calculated at the Company's effective rate for the applicable period and totaled in this line item. (b) Adjustment related to GAAP and Non-GAAP diluted weighted average shares difference, due to the Company being in a Net income position on a GAAP basis versus a Net loss position on a Non-GAAP basis. Southwest'#2424 Southwest