DALLAS, Oct. 18, 2021 /PRNewswire/
-- Southwest Airlines Co. (NYSE: LUV) today
announced a series of near-term goals, actions, and initiatives in
support of a 10-year plan to maintain carbon neutrality to 2019
levels while continuing to grow its operations.
The Company plans to achieve these objectives through the
following actions:
- Reduce its carbon emissions per available seat mile (including
scope 1 and scope 2 emissions) by at least 20 percent by 2030
through fleet modernization, route optimization, and other
initiatives.
- Replace 10 percent of its total jet fuel consumption with
sustainable aviation fuel (SAF) by 2030.
- Offset emissions by providing the first U.S.-based airline
carbon offset offer with loyalty points and for every dollar
contributed toward offsetting Southwest's carbon emissions,
Southwest will match the contribution.*
"As a leading global citizen, we're building on prior efforts to
address our environmental impact, and with today's announcement,
we're setting goals to reduce our carbon emission intensity and
increase SAF in our operations; and we're working to advance
knowledge in the field of sustainability," said Bob Jordan, Executive Vice President and
Incoming CEO at Southwest Airlines.
*Taxes and fees will not be matched by Southwest or earn points.
Southwest's contribution may be used to purchase offsets for
Southwest from any carbon offset project of Southwest's choice.
Rapid Rewards® Members can earn 10 Rapid Rewards bonus points per
dollar contributed towards the purchase of offsets for Southwest up
to a maximum of 500 Rapid Rewards bonus points per month. Points
will only be awarded to the Rapid Rewards Member's Rapid Rewards
account number entered at the time of the carbon offset
transaction.
Southwest's 10-year plan to maintain carbon neutrality to 2019
levels while continuing to grow its operations includes plans
to reduce, replace, and offset. In addition, the Company will
continue to partner with organizations and nonprofits whose work
complements its efforts to improve environmental sustainability and
will invite Customers to join in this effort to show kindness to
our planet.
The scope of Southwest's Sustainability efforts extends well
beyond a ten-year time horizon. The ultimate objective is to
achieve carbon neutrality by 2050, and there is significant work
underway directed at this ultimate objective. An important step in
that long-term plan is a tangible strategy and clear set of actions
for the next ten years.
"Southwest is making sustainability a priority in order to
continue connecting Customers to what's important in their lives
while striving to achieve our carbon neutrality goals," said
Stacy Malphurs, Vice President of
Supply Chain Management & Environmental Sustainability for
Southwest. "Our goal to reduce, replace, offset, and partner are
important next steps in the journey to build a holistic approach to
improve our environmental sustainability."
Reduce
Southwest plans to continue reducing its
carbon emissions intensity by:
- Modernizing its fleet with more fuel-efficient Boeing 737 MAX 7
and 8 aircraft. Southwest has extended its order book through 2031
with plans to accelerate 737-700 retirements and invest more than
$10 billion in new and existing firm
aircraft orders to further improve fuel efficiency and reduce
carbon emissions.
- Continuing to work with the Federal Aviation Administration's
(FAA) NextGen program in an effort to modernize the U.S. air
traffic control system by addressing limitations on air
transportation capacity and making more efficient use of
airspace.
- Electrifying eligible ground services equipment, increasing the
current fleet of more than 1,400 electric-powered vehicles.
- Adding to the Company's more than $630
million investment in fuel efficiency initiatives since
2002, implementing, as an example, new technology to monitor fleet
utilization.
Replace
By 2030, Southwest plans to replace 10
percent of its total jet fuel consumption as sustainable aviation
fuel by:
- Establishing a partnership with Neste for up to 5 million
gallons of SAF through December
2023.
- Working with Marathon Petroleum Corporation and Phillips 66,
furthering its announced memoranda of understanding, to facilitate
the development and production of SAF at significant scale.
- Engaging with Deloitte, Siemens, and Zurich North America for
SAF beta partnerships to help support Southwest's utilization of
SAF in its operation.
Offset
As Southwest implements long-term plans and
explores new technologies in the short-term, it also is taking
steps to offset energy consumption and engage both individual and
corporate Customers on opportunities by:
- Partnering with Chooose™ and Customers to offset
Southwest's carbon emissions by providing the first U.S.-based
airline carbon offset offer with loyalty points and for every
dollar contributed toward offsetting Southwest's carbon emissions,
Southwest will match the contribution.*
- Launching the Green Incentive Program, a Southwest Business
performance-based incentive program that provides corporate
Customers the opportunity to earn and use funds for their company's
sustainability initiatives, which could include offsets or other
initiatives.
- Sourcing 100 percent renewable electricity as of May 2021 for the carrier's Dallas corporate campus through the purchase
of renewable energy certificates.
Partner
In addition to the goals announced above,
partnerships will play a crucial role in Southwest's sustainability
efforts, along with government support and collaboration throughout
the entire value chain, including:
- Making a $10 million commitment
to Yale's Center for Natural Carbon
Capture to research technological advancements and find new
solutions to reduce net greenhouse gas emissions and to
Yale's School of the Environment to
explore the current state of sustainability, strategy, policy, and
economics.
- Continuing Repurpose with Purpose, a global sustainability
initiative that upcycles items such as leather seat coverings and
transforms them into new products. Through Repurpose with Purpose,
Southwest Airlines supports communities by helping to provide
employment, skills training, and donated products. In 2020, nearly
140,000 pounds of leather seat covers were repurposed, helping
Southwest reduce the amount of waste sent to landfills while also
generating social and economic opportunities for communities.
- Working with a variety of organizations and nonprofits,
including Airlines for America (A4A), whose work complements our
sustainability efforts, as well as government entities in
supporting investments and incentives to help the industry meet its
goals.
Cautionary Statement Regarding Forward-Looking
Statements
This news release 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 (i) to the Company's carbon neutrality goals,
plans, and initiatives, including with respect to reducing carbon
emissions intensity, maintaining carbon neutral growth, replacing
conventional jet fuel with sustainable aviation jet fuel,
offsetting carbon emissions, engaging with third parties, and
improving fuel efficiency; (ii) the Company's goal to grow its
operations; (iii) the Company's fleet plans, expectations, and
initiatives; and (iv) the Company's plans, estimates, and
assumptions related to capital spending. Forward-looking
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; any new variant strains of the underlying virus;
the effectiveness, availability, and usage of vaccines; the
duration and scope of governmental orders and restrictions related
to the COVID-19 pandemic; the extent of the impact of the COVID-19
pandemic on overall demand for air travel and the Company's related
business plans and decisions; the impact of the COVID-19 pandemic
on the Company's ability to retain key Employees; and the impact of
the COVID-19 pandemic on the Company's access to capital; (ii) the
impact of legislative and regulatory activity related to carbon
emissions, in particular with respect to sustainable aviation fuel
tax credits and compliance requirements; (iii) the
Company's dependence on Boeing with respect to the Company's fleet
delivery schedule and related fleet modernization; (iv) the
Company's dependence on the FAA with respect to the NextGen
program; (v) the Company's dependence on other third parties, in
particular with respect to the production, transport, storage, and
distribution of sustainable aviation fuel, and the impact on the
Company's goals and plans of any third party delays or
non-performance; (vi) the Company's ability to timely and
effectively implement and maintain the necessary processes to
support the utilization of sustainable aviation fuel; (vii) the
impact of economic conditions, governmental actions,
climate-related conditions and weather events, fuel prices, actions
of competitors, socio-demographic trends, consumer
perception, and other factors beyond the Company's
control, on the Company's business decisions, plans,
strategies, and goals; (viii) 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 (ix) 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 in the
Company's Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2021. Caution should
be taken not to place undue reliance on the Company's
forward-looking statements, which represent the Company's views
only as of the date this release. The Company undertakes no
obligation to update publicly or revise any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
ABOUT SOUTHWEST AIRLINES CO.
In its
51st year of service, Dallas-based
Southwest Airlines Co. continues to differentiate itself
from other air carriers with Customer Service delivered by more
than 54,000 Employees to a Customer base that topped 130 million
Passengers in 2019. Southwest has a robust network of
point-to-point service with a strong presence across top leisure
and business markets. In peak travel seasons during 2019, Southwest
operated more than 4,000 weekday departures among a network of 101
destinations in the United States and 10 additional
countries. In 2020, the carrier added service to Hilo,
Hawaii; Cozumel, Mexico; Miami; Palm Springs,
Calif.; Steamboat Springs; and Montrose (Telluride),
Colo. Thus far in 2021, Southwest has initiated service
to Chicago (O'Hare) and Sarasota/Bradenton both
on Feb. 14; Savannah/Hilton
Head and Colorado Springs both on March
11; Houston (Bush) and Santa Barbara,
Calif. both on April
12; Fresno, Calif. on April
25; Destin/Fort Walton Beach on May 6; Myrtle Beach, S.C. on
May 23; Bozeman, Mont. on
May 27; Jackson, Miss. on
June 6; and Eugene, Ore. on Aug. 29. The carrier will begin service
to Bellingham, Wash. on Nov.
7; and Syracuse on Nov. 14.
The carrier issued its Southwest® Promise in
May 2020 to highlight new and
round-the-clock efforts to support its Customers and Employees
well-being and comfort. Among the changes are enhanced cleaning
efforts at airports and onboard aircraft, along with a federal
mandate requiring every person to wear a mask at all times
throughout each flight. Additional details about the Southwest
Promise are available
at Southwest.com/Promise.
Southwest coined Transfarency® to describe its
purposed philosophy of treating Customers honestly and fairly, and
low fares actually staying low. Southwest is the only major U.S.
airline to offer bags fly free to everyone (first and second
checked pieces of luggage, size and weight limits apply, some
carriers offer free checked bags on select routes or in qualified
circumstances). Southwest does not charge change fees, though fare
differences might apply.
Southwest is one of the most honored airlines in the world,
known for a triple bottom line approach that contributes to the
carrier's performance and productivity, the importance of
its People and the communities they serve, and an overall
commitment to efficiency and the planet. Learn more about how the
carrier gives back to communities across the world by
visiting Southwest.com/citizenship.
Book Southwest Airlines' low fares online
at Southwest.com or by phone at
800-I-FLY-SWA®.
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SOURCE Southwest Airlines Co.