Financial Analysis of Southwest Airlines

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Financial Analysis of Southwest Airlines DeVry University ACCT304 February 18, 2012 Financial Analysis of Southwest Airlines Table of Contents Intro 3 Related Party Transaction 3 Assets 3 Liabilities 4 Trend in Assets and Liabilities 4 Cash Flow Statement 5 Investing Activities (largest) 5 Operating Activities (trend) 6 Income Statement 6 Net Income (trend) 7 Comprehensive Income 7 Common Stock 7 Separately Reported Items 8 Conclusion 9 Financial Analysis of Southwest Airlines Intro Southwest Airlines (NYSE: LUV) has been providing exemplary service for 40 years. It was established in 1971, and is now the nation’s largest carrier in terms of originating domestic passengers boarded serving 73 cities in 38 states (Southwest Investor Relations: Company Profile). On May 2, 2011, Southwest and AirTrans Airways merged, and now is in charge of its operations. It is known for its low-fares and no-fee baggage policy, but most importantly, they are known for having the best customer service records. “Southwest is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet.” (Southwest Investor Relations: Company Profile). Related Party Transaction Before 2011, Southwest Airlines and AirTran Airways were the two biggest discount airlines, but on May 2, 2011 the two companies merged into one. Both AirTran and Southwest are confident that this merger is best for everyone; for consumers, employees of both companies, and shareholders. Southwest is best known for their low fares and no-fee baggage policy. Many consumers are relieved that they will continue their no-fee baggage policy and

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