The story goes back to 1973, when Southwest had completed two full years of operations. In February, Southwest made quite a splash with its legendary retort to a competitor attempting to lure away our Customers with $13 tickets. In response, we offered a free bottle of liquor to anyone who purchased our standard $26 fare. This approach was so popular that at one point, Southwest became one of Texas' largest spirits distributors. But more importantly, earning repeat business from our Customers began to turn the tide of steep losses into our very first profit. 

Even though our business was improving, the financial stability wouldn’t be known until after the books were closed for the entire 1973 financial year. So, at the end of the summer, our Employees weren’t quite sure the recent success was sustainable. With the thought that Southwest might not be around another year, they decided to have what they thought might be one final celebration. On October 1, 1973, the First & (what they thought would be) Last Chili Cookoff took place. 

Thankfully, when 1973 came to a close, and all revenues and expenses could be balanced, Southwest was profitable for the first time! The cover of the annual report summed it up best:  

“SOUTHWEST AIRLINES TURNED THE CORNER IN 1973!!!” 

In recognition of our early Employees' hard work and dedication, the Board of Directors created another Southwest first—the industry’s first profit-sharing plan. The unprecedented trend of annual profitability would continue for another 46 years until the pandemic uprooted the entire global economy. No other airline in the history of aviation can claim such a feat!