1. Proprietary and Confidential Southwest Airlines © 2013 Southwest Airlines Co Is the “Southwest Effect” Still Alive? April 30, 2014

2. Southwest Effect Examples 2  Houston, TX  Charleston, SC  Memphis, TN  Wichita, KS  Flint, MI  Philadelphia to Pittsburg

3. 3 Market Before Period Service Begins Interim Period BeforeInterim% Change Current% Change Pax FarePax FarePaxFarePax FarePaxFare Denver 2Q067/17/20063Q07 729 $ 154 974$120 34%-22% 1014 $ 16639%8% Panama City, FL* 1Q105/23/20102Q11 5 $ 226 51$147 985%-35% 67 $ 1601319%-29% Charleston, SC 3Q103/13/20111Q12 60 $ 204 92$177 53%-13% 89 $ 18848%-8% Greenville, SC 3Q103/13/20111Q12 41 $ 225 95$181 132%-20% 91 $ 189122%-16% Newark, NJ 3Q106/5/20112Q12 534 $ 259 727$244 36%-6% 711 $ 24633%-5% Above Mkts Combined 1397 $ 2001939 $ 17339%-13% 1989 $ 19742%-1% * Panama City data combines the old (PFN) and new (ECP) airports Passengers measured as “passengers daily each way” Beginning period reflects the four quarters ended prior to the beginning of Southwest service. Interim period reflects the four quarters ended after the beginning of Southwest service. Current period reflects year ended December 31, 2013 Long-time Southwest city  While Southwest has served Houston for over 40 years, new markets continue to stimulate traffic and lower fares  Even in more mature markets, the Southwest Effect has helped suppress fare increases. In Denver-Houston, the fare has increased only 8% in almost eight years  Newer routes, such as Panama City, have stimulated traffic substantially and lowered fares HOUSTON

4. CHARLESTON, SC Low service levels, high fares  Southwest stimulates traffic in not only large airports with good service, but also smaller, underserved airports  In the first year of service, Southwest was able to facilitate traffic growth by 129% and lower average fares by 30%  After approximately three years of service, traffic has grown by 120% and fares remain 28% lower despite inflation and increased operating costs 4 Market Before Period Service Begins Interim Period BeforeInterim% Change Current% Change Pax FarePax FarePaxFarePax FarePaxFare Baltimore (BWI)3Q103/13/20111Q1243$201192$126 347%-37% 211$119 391%-41% Chicago (ORD/MDW)3Q103/13/20111Q12109$190206$156 89%-18% 191$170 75%-11% Houston (HOU/IAH)3Q103/13/20111Q1260$20492$177 53%-13% 89$188 48%-8% Nashville3Q103/13/20111Q1233$24178$109 136%-55% 83$112 152%-54% Above Mkts Combined 245 $ 202561 $ 142129%-30% 538 $ 146120%-28%

5. MEMPHIS, TN Service dominated by one airline, high fares  Southwest provides low-fare competition at airports dominated by a single carrier  In the one quarter since Southwest service began, traffic in these markets has risen by 14%, while fares have eased, down 8% 5 Market Before Period Service Begins BeforeCurrent% Change Pax FarePax FarePaxFare Baltimore (BWI)3Q1311/03/13103 $ 130126 $ 12222%-6% Chicago (ORD/MDW)3Q1311/03/13175 $ 209207 $ 18318%-12% Houston (HOU/IAH)3Q1311/03/1385 $ 194106 $ 17616%-3% Orlando3Q1311/03/13195 $ 155211 $ 1468%-6% Tampa Bay3Q1311/03/1387 $ 17092 $ 1646%-4% Above Mkts Combined 651 $ 172742 $ 15914%-8%

6. WICHITA, KS Varied service, but little competition on each route  Previous service in Wichita mainly delivered passengers to hubs. Each route had little or no competition  Southwest stimulated traffic and lowered fares by providing competition on routes already flown  Since Southwest began service, traffic in these markets has grown by 34% while fares have declined 24% 6 Market Before Period Service Begins BeforeCurrent% Change Pax FarePax FarePaxFare Chicago (ORD/MDW)1Q1306/02/1369 $ 22893 $ 17435%-24% Dallas (DFW/DAL)1Q1306/02/1340 $ 25981 $ 134100%-48% Las Vegas1Q1306/02/13126 $ 116142 $ 10313%-11% Above Mkts Combined 235 $ 173315 $ 13234%-24%

7. FLINT, MI Good connecting service, but little direct service  While AirTran previously served Flint, the strength of the Southwest network has opened up additional routes  In the time since Southwest announced service to Flint, traffic has grown by 59% while fares have fallen 14%  The Southwest Effect has stimulated traffic for other carriers as well; competitors have seen traffic increase approximately 50% from 3Q 2012 to 4Q 2013 7 Market Before Period Service Begins BeforeCurrent% Change Pax FarePax FarePaxFare Baltimore (BWI)1Q1304/14/133 $ 15661 $ 841758%-46% Las Vegas2Q1308/11/1316 $ 19638 $ 171134%-13% Orlando1Q1304/14/13121 $ 132126 $ 1274%-4% Tampa Bay1Q1304/14/1376 $ 139119 $ 11456%-18% Above Mkts Combined 217 $ 140344 $ 12059%-14%

8. Philadelphia to Pittsburg Fares rose substantially after loss of Southwest service 8

9. Southwest has a strong presence in 9 of the top 10 least expensive airports in the U.S. Most Expensive Airports RankAirportFareWN Mkt Share 1Huntsville, AL$5280% 2Cincinnati, OH$5100% 3Washington Dulles$5068% 4Newark-Liberty, NJ$4998% 5Houston (Bush), TX$4980% 6Fayetteville, AR$4850% 7Savannah, GA$4810% 8Madison, WI$4790% 9Cleveland, OH$45916% 10Pensacola, FL$45215% Least Expensive Airports RankAirport FareWN Mkt Share 1Long Beach, CA$2490% 2Las Vegas, NV$25539% 3Burbank, CA$28176% 4Ft. Lauderdale, FL$28923% 5Dallas (Love), TX$29196% 6Orlando, FL$30334% 7Oakland, CA$30471% 8Islip, NY$31289% 9Chicago (Midway), IL$32090% 10Ft. Myers, FL$32626% Represents data for the fourth quarter 2013, excludes zero-fare passengers, Hawaii, Alaska, and U.S. territories Chicago O’Hare and DFW are the 31 st and 32 nd most expensive airports, respectively Source: Bureau of Transportation Statistics, Air Fare Press Release on April 22, 2014, DOT DB1B O&D Survey  US Domestic average air fare for 4Q 2013 was $381  Memphis fell out of the top ten most expensive airports to 14 th in 4Q 2013 with fares falling 9% from 4Q 2012. Southwest began service in Memphis in Nov. 2013

10. Conclusions Southwest Effect Alive and Applicable in all types of markets  The Southwest Effect is alive in markets of all types – small and large cities, short and long-haul routes, very-high-fare and not-so-high fare Southwest Effect is Good for All  Southwest Effect is good for…  Customers – more people get to fly to their favorite destinations at lower fares  Cities – more traffic means more visitors that help stimulate local economies  Airports – more traffic means more enplanement, which means more airport revenues  Southwest – Southwest welcomes more Customers and revenue  Other Airlines – even other airlines at times benefit from the Southwest effect. Their own fares drop, traffic increases, and total revenue can increase as well 10