The company announced several new initiatives including assigning seats, offering premium seating options, redesigning the boarding model, and introducing redeye flights (page 35). These initiatives are intended to improve financial performance and metrics, including return on invested capital and operating margins, over the next three years.

The company expects fourth quarter 2024 unit revenues to increase in the range of 3.5 percent to 5.5 percent on a year-over-year basis with capacity down approximately 4 percent, also on a year-over-year basis (page 34).

The Company also announced it will pursue partnerships with other airlines in order to further expand the reach of the Company's network and connect Customers with more global destinations to generate additional demand. The Company expects to launch its first such partnership in first quarter 2025 with transatlantic connectivity with Icelandair (page 36).

The Company is targeting other cost initiatives that are expected to result in savings, including minimizing hiring, capitalizing on supply chain opportunities, and improving corporate efficiency through automation. These and other initiatives are currently expected to deliver more than $500 million in annual cost savings by 2027 (page 36).

Boeing continues to experience delays in fulfilling its commitments with regards to delivery of MAX aircraft to the Company, as a result of manufacturing challenges and a work stoppage that began in September 2024 (page 26).

As of September 16, 2024, all the Company's labor contracts are now closed until the next labor contract becomes amendable in October 2026. Since October 2022, each of the 12 union-represented workgroups, which collectively represent approximately 83 percent of the Company's Employees, have ratified new contracts (page 38).

The Company is a defendant in class action litigation asserting it has not provided paid short-term military leave to certain employees, in violation of USERRA. The Company is currently not able to estimate a range of possible loss with regards to the litigation (page 27).

Based on the Company's wide-scale operational disruption, the Company has been subject to inquiries and investigations by governmental agencies and could be subject to fines and/or penalties resulting from those inquiries and investigations, as well as litigation from Customers and Shareholders (page 8).

The delivery timing for the -7 is dependent on the Federal Aviation Administration (“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 (page 27).

The Company has continued to gain experience with a new revenue management system that was implemented in 2023, which it believes will deliver better long-term performance compared with its prior system (page 44).

As part of its ongoing focus on product evolution, the Company is moving forward with plans to assign seats, offer premium seating options, redesign the boarding model (page 35).

The Company also announced it is adding 24-hour operation capabilities with the introduction of redeye flights. Booking of redeye flying on initial routes became available starting July 25, 2024 through Southwest.com (page 35).

Another one of the Company's efficiency initiatives includes investments that will decrease the amount of time it takes to turn an aircraft (unload Passengers from an arriving flight and load Passengers on the same aircraft for its subsequent flight) (page 36).

Examples of such investments include moving to a fully digital (i.e., paperless) process, improved communication tools for Employees, and better visual and real-time information to assist both Customers and Employees (page 36).

The Company is targeting other cost initiatives that are expected to result in savings, including minimizing hiring in order to right-size current operations and match the Company's lower expected growth rates in the near term, capitalizing on identified supply chain opportunities, and improving its corporate efficiency through automation and better allocation of resources (page 36).

The Company also continues to invest in various technologies and digital products designed to improve the Customer travel experience (page 36).

Following a Customer study regarding the inflight experience, the Company has continued to enhance its onboard offerings during the past two years with both completed and ongoing improvements being made, such as faster WiFi, in-seat power, and larger overhead bins (page 35).

Work is well underway on a refreshed cabin design, including new, more comfortable RECARO seats (page 35).

In addition, the Company intends to focus on prudent capital deployment by minimizing fleet capital expenditures, continuing to invest in infrastructure, manage debt levels, and provide returns to Shareholders through dividends and planned share repurchases (page 36).

On October 24, 2024, the Company announced its intention to launch an initial $250 million accelerated share repurchase program in fourth quarter 2024 (page 54).

The Company has access to $1.0 billion under its amended and restated revolving credit facility (the "Amended Credit Agreement"), which expires in August 2028 (page 28).

As part of its commitment to corporate sustainability, the Company published its 2023 One Report and Diversity, Equity, and Inclusion (“DEI") Report on May 8, 2024 (page 39).

The continued deliveries of MAX aircraft are expected to remain critical to the Company's efforts to modernize its fleet, reduce carbon emissions intensity, and achieve its near-term environmental sustainability goals (page 41).

While the Company believes that the disclosures contained in the Southwest One Report, the DEI Report, and other voluntary disclosures regarding environmental, social, and governance (“ESG”) matters are responsive to various areas of investor interest, the Company believes that certain of these disclosures address matters that are currently not material in the near term to the Company's operations, strategy, financial condition, or financial results (page 39).

Thus far in the quarter, travel demand remains healthy and bookings-to-date for the holiday season are strong, demonstrating the continued resilience of the leisure travel market (page 34).

This guidance range contemplates a headwind of just under one-half point from Hurricane Milton and the resulting Customer cancellations (page 34).

The unit revenue sequential improvement was also driven by the improving industry backdrop, tactical commercial actions including network and revenue management initiatives, as well as an approximate one point tailwind from the reaccommodation of Customers affected by other airlines' cancellations following their CrowdStrike technology outage incident in July (page 39).