1) Prepare a horizontal analysis of the income statement for 2015 to 2016 AND for 2016 to 2017. 2)
						2) Prepare a vertical analysis of the income statement for 2015, 2016 and 2017.

Southwest Airlines Co.
Consolidated Statement of Income
(in millions, except per share amounts)
	Year ended December 31,
	2017	2016	2015
OPERATING REVENUES:
Passenger	$ 19,141	$ 18,594	$ 18,299
Freight	173	171	179
Special revenue adjustment	-	-	172
Other	1,857	1,660	1,170
Total operating revenues	21,171	20,425	19,820
OPERATING EXPENSES:
Salaries, wages, and benefits	7,319	6,798	6,383
Fuel and oil	3,940	3,647	3,616
Maintenance materials and repairs	1,001	1,045	1,005
Aircraft rentals	198	229	238
Landing fees and other rentals	1,292	1,211	1,166
Depreciation and amortization	1,218	1,221	1,015
Acquisition and integration	-	-	39
Other operating expenses	2,688	2,514	2,242
Total operating expenses	17,656	16,665	15,704
OPERATING INCOME	3,515	3,760	4,116
OTHER EXPENSES (INCOME):
Interest expense	114	122	121
Capitalized interest	(49)	(47)	(31)
Interest income	(35)	(24)	(9)
Other (gains) losses, net	234	162	556
Total other expenses (income)	264	213	637
INCOME BEFORE INCOME TAXES	3,251	3,547	3,479
PROVISION FOR INCOME TAXES	(237)	1,303	1,298
NET INCOME	$ 3,488	$ 2,244	$ 2,181
NET INCOME PER SHARE, BASIC	$ 5.80	$ 3.58	$ 3.30
NET INCOME PER SHARE, DILUTED	$ 5.79	$ 3.55	$ 3.27
Cash dividends declared per common share $	0.48	$ 0.38	$ 0.29