History of Southwest Airlines in Timeline

Southwest Airlines is a major U.S. airline headquartered in Dallas, Texas. As of 2024, it is the fourth-largest in North America by passenger count. Southwest operates an all-Boeing 737 fleet, serving over 100 destinations across 42 U.S. states, Washington, D.C., Puerto Rico, and ten countries and territories in the Gulf of Mexico and Caribbean Sea. These include Aruba, the Bahamas, Belize, the Cayman Islands, Costa Rica, Cuba, the Dominican Republic, Mexico, Jamaica, and Turks and Caicos.

1966: Southwest Airlines founded

In 1966, Herbert Kelleher and Rollin King founded Southwest Airlines.

March 9, 1967: Establishment of Air Southwest Co.

On March 9, 1967, Herb Kelleher and Rollin King established Air Southwest Co., which would later become Southwest Airlines.

1967: Incorporation as Air Southwest Co.

In 1967, Southwest Airlines was incorporated as Air Southwest Co.

1970: Lawsuits resolved, paving way for Southwest to begin operations

In 1970, lawsuits filed by other airlines to prevent Southwest from starting up were resolved.

1971: Name change to Southwest Airlines Co.

In 1971, Air Southwest Co. adopted its current name, Southwest Airlines Co., and began operating as an intrastate airline within Texas, flying between Dallas, Houston, and San Antonio.

1973: Start of Southwest's 47-year profitability streak

From 1973, Southwest Airlines was profitable for 47 consecutive fiscal years.

1975: Expansion to other Texas cities

In 1975, Southwest began flying to other cities in Texas.

1979: Southwest begins regional interstate service.

In 1979, Southwest Airlines began regional interstate service, expanding beyond Texas.

1979: Service to adjacent states begins

In 1979, after passage of the Airline Deregulation Act, Southwest began flying to adjacent states.

June 18, 1987: Introduction of The Company Club

On June 18, 1987, Southwest Airlines introduced a frequent-flyer program called The Company Club, awarding credits based on trips flown.

1991: Opposition to high-speed rail proposals

In 1991, Southwest Airlines actively opposed proposals to develop high-speed rail in Texas.

March 1992: "Malice in Dallas" Arm Wrestling Match

In March 1992, Southwest CEO Herb Kelleher and Stevens Aviation CEO Kurt Herwald engaged in an arm-wrestling match dubbed "Malice in Dallas" to settle a trademark dispute over the slogan "Plane Smart."

1994: Cancellation of high-speed rail project

In 1994, the high-speed rail project was cancelled, with Southwest’s lobbying efforts cited as a significant factor.

1996: Renaming of frequent-flyer program to Rapid Rewards

In 1996, Southwest Airlines' frequent-flyer program was renamed Rapid Rewards.

July 15, 2004: Gary C. Kelly replaces Jim Parker

On July 15, 2004, Gary C. Kelly replaced Jim Parker as CEO of Southwest Airlines.

2006: Service to Denver begins

In 2006, Southwest started service to Denver, which is now its most popular destination.

July 15, 2008: Gary Kelly assumes the title of president

On July 15, 2008, Gary Kelly assumed the title of president, replacing Colleen Barrett.

March 1, 2011: Rapid Rewards transition to revenue-based points system

On March 1, 2011, Southwest Airlines' Rapid Rewards program transitioned to a revenue-based points system.

September 17, 2012: Groundbreaking on new Training and Operational Support building

On September 17, 2012, Southwest Airlines broke ground on a new Training and Operational Support building.

2012: MythBusters episode on Southwest's boarding process

In 2012, an episode of MythBusters found Southwest's open seating boarding process to be faster on average than conventional methods.

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June 2, 2016: Groundbreaking on new office and training facility, Wings

On June 2, 2016, Southwest broke ground on its new office and training facility known as Wings.

April 3, 2018: Opening of the Wings facility

The Wings facility opened on April 3, 2018.

August 16, 2019: Expansion of LEAD Center announced

On August 16, 2019, Southwest Airlines announced an expansion of the LEAD Center to accommodate additional simulators.

October 2019: Lawsuit Filed Over Hidden Camera

In October 2019, a Southwest flight attendant filed a lawsuit claiming pilots livestreamed footage from a hidden camera in the plane's toilet to an iPad. The lawsuit alleges one pilot claimed such cameras were a "top-secret security measure" installed in all of the airline's 737-800 aircraft.

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October 18, 2019: Points no longer expire in Rapid Rewards program

Since October 18, 2019, Rapid Rewards points do not expire provided the member remains active.

2019: End of Southwest's 47-year profitability streak

Southwest Airlines' 47-year streak of consecutive profitable fiscal years ended in 2019.

January 2, 2020: Purchase of additional land adjacent to Wings and LEAD facilities

On January 2, 2020, Southwest Airlines announced that it would be purchasing additional land adjacent to its Wings and LEAD facilities.

February 2020: DOT Report Finds Safety Concerns

In February 2020, a DOT inspector general report found that Southwest was flying airplanes with safety concerns and that the Federal Aviation Administration was failing to properly oversee the airline.

December 27, 2020: Consolidated Appropriations Act provides aid to airlines

On December 27, 2020, the Consolidated Appropriations Act, 2021 was enacted, providing additional financial aid to US airlines, rescinding pay cuts for employees.

2020: DOT Inspector General Report

In 2020, a DOT inspector general's report claimed that Southwest was flying airplanes with safety concerns and that the Federal Aviation Administration was failing to properly oversee the airline.

2021: Airlines get financial aid

In 2021 the Consolidated Appropriations Act, 2021 was enacted, providing additional financial aid to US airlines

2021: Southwest named to Fortune's 'Most Admired Companies' list

In 2021, Southwest Airlines was named to Fortune magazine's 'Most Admired Companies' list, reaching number 14.

February 1, 2022: Bob Jordan becomes Southwest's CEO

On February 1, 2022, Bob Jordan became Southwest's sixth CEO, replacing Gary C. Kelly.

July 27, 2022: Report Released on Safety Lapses

On July 27, 2022, federal investigators with the US Office of Special Counsel released a report claiming that Southwest stonewalled FAA investigations into maintenance and piloting safety lapses, and criticized the FAA for failing to adequately oversee the airline.

December 21, 2022: Severe Delays and Flight Cancellations

Starting on December 21, 2022, Southwest Airlines experienced severe delays and thousands of flight cancellations, which continued through the Christmas holiday. While bad weather contributed, inadequate staffing and an outdated employee scheduling system were also blamed.

2022: Holiday Meltdown

In 2022, Southwest Airlines experienced a significant operational and financial setback during the holiday season, canceling over 15,000 flights due to severe weather and outdated scheduling systems, resulting in a record fine and substantial financial losses.

2022: "Low fares. Nothing to hide. That's TransFarency!"

In 2022, the airline's slogan is "Low fares. Nothing to hide. That's TransFarency!"

December 2023: Settlement with Department of Transportation

In December 2023, Southwest Airlines reached a settlement with the USDOT for a record-breaking $140 million fine due to the airline's operational failures. The settlement included a $35 million fine payable directly to the federal government, but the USDOT waived the final $11 million payment.

January 2024: Approval of five-year labor contract for pilots

In January 2024, the latest five-year labor contract for Southwest Airlines pilots was approved.

January 2024: Southwest destinations as of January 2024

As of January 2024, Southwest Airlines flies to over 100 destinations in 42 states, Puerto Rico, Mexico, Central America, and the Caribbean, utilizing a point-to-point system combined with a rolling-hub model.

September 2024: Kelly to not seek reelection

In September 2024, Gary Kelly announced he would not seek reelection as executive chairman in 2025.

October 2024: Settlement with Elliott Investment Management

In October 2024, a settlement between Southwest and Elliott Investment Management resulted in Gary Kelly stepping down as executive chairman and five Elliott-backed directors joining the board.

October 24, 2024: Kelly announces accelerated retirement

On October 24, 2024, Gary Kelly announced he would accelerate his retirement, effective November 1, 2024.

November 1, 2024: Kelly's Retirement

Gary Kelly's retirement went into effect on November 1, 2024. Rakesh Gangwal was announced as independent chair of the board of directors.

2024: Southwest Airlines as fourth-largest North American airline

As of 2024, Southwest Airlines is the fourth-largest airline in North America when measured by passengers carried. The airline serves over 100 destinations in 42 states, Washington, D.C., Puerto Rico, and ten other countries and territories near the southern United States.

January 30, 2025: Southwest Airlines employment numbers as of January 2025

As of January 30, 2025, Southwest Airlines had 72,450 active full-time equivalent employees.

February 2025: Southwest layoffs after Elliot board takeover

In February 2025, following the Elliot board takeover, Southwest laid off 1,750 of its non-contract staff, approximately 15% of its corporate workforce.