highlights of 1957 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Seat miles produced . 1,175,071,000 
Seat miles sold .. . ..... . ... . 
Passengers carried . . .... .. ... . 
Total operating revenues . 
Operating income . 
Net incqme . 
Dividends paid: 
Cash . 
Stock . 
Common stock outstanding .... . .. .. . ..... . . .. .. .. .. . 
Income per share . 
Dividends per share: 
Cash-annual rate ... . ... . . . 
Stock . 
Total shareholders' equity 
Shareholders' equity per share . 
Cash and U.S. Government securities ..... . 
Working capital . 
Investment in property and equipment . 
Long-term debt. 
Number of employees . 
Wages and salaries paid .. 
$ 
$ 
$ 
$ 
I                                               
the cover 
702,727,000 
1,379,653 
42,218,951 
4,708,545 
2,401,914 
660,002 
755,492 
848,541 
2.83 
0.80 
4% 
17,469,192 
20.59 
7,332,034 
4,688,158 
38,412,441 
16,827,000 
2,773 
14,334,769 
The startling contrasts of Mexico are illustrated in the cover 
photographs of the ancient Hacienda Vista Hermosa bell 
tower and the modern skyscraper home of the new Western 
Air Lines offices on Paseo de la Reforma in Mexico City. 
Climaxing an 11-year campaign, the company in 1957 became 
the first U.S. airline to link major cities of the West with 
Mexico via the Los Ange les gateway. 
(Photograph s by Kenneth Brown, Los An geles A irport Photographers) 
 the president's letter 
To shareholders, employees, customers and friends: 
The past year was one of the most rewarding in the history of Wes tern 
Air Lines. Much progress was made on long-range objectives. Western's 
system was lengthened by inauguration of major routes, new aircraft 
increased its product-passenger seat-miles-at a record rate, and experienced 
personnel maintained efficient operating conditions. 
Shareholders received dividends for the seventh consecutive year and the 
company closed 1957 in sound financial condition. However, despite the 
management's adherence to a policy of economical operation, Western Air 
Lines, along with all non-subsidized airlines, must cope with increasingly 
strong pressures on profit margins caused by the constant cost spiral which 
cannot be offset with pre-infiation fare levels. It is hoped that the Civil Aero- 
nautics Board soon will allow a realistic increase in passenger fares to insure 
adequate returns for planned future growth. 
On the following pages is presented a detailed report of the company's 
operations last year. Attention also is invited to the data showing Western's 
record for the past decade. 
In 1958 Western will become the first domestic airline to complete 32 years 
of continuous operation. The year should be a period of consolidation of 
major gains, additional progress, and development of new routes and services. 
February 10, 1958 
Western Air Lines Building 
Los Angeles International Airport 
Los Angeles 45, California 
PRESIDENT 
 32nd annual report 
. . . . . . . . . . . . . . . . . . . . . . . 
EARNINGS 
$2,401,914 for the year 1957 
During 1957, Western Air Lines earned net 
income of $2,401,914, or $2.83 a share based on 
the 848,541 shares of stock outstanding at the 
close of the year. 
This earnings record compares with 1956 
income of $3,044,458, equal to $3.76 a share 
computed on shares outstanding on December 
31, l956, adjusted for a 4 per cent stock dividend 
declared in 1957. Earnings in 1957 represented 
by profits realized from the sale of retired aircraft 
were equal to $.62 a share, compared with $2.48 
a share from similar sources in 1956. 
Earnings before federal taxes on income were 
$4,726,914, or $5.57 a share, while for 1956 the 
total was $4,844,458, or $5.99 a share. Federal 
taxes on income in 19 5 7 represented $2. 7 4 a 
share, compared with $2.23 a share in 1956. 
Operating income for 1957 amounted to 
$4,708,545, compared with the prior year's total 
of $2,513,250, a figure substantially depressed by 
a 73-~ay _strike early in 1956. Comparison of 
operatmg mcome for the first quarters is meaning- 
less because of the strike. That of the second and 
third quarters of 19 5 7 was 21 per cent above the 
same 1956 periods, but the fourth quarter was 
adversely affected by the abrupt traffic decline 
related to the current business recession. Notwith- 
standing this reaction, the company registered a 
small profit in the last quarter of 1957. 
DIVIDENDS 
Seventh consecutive year 
For the seventh consecutive year, Western Air 
Lines in 1957 paid cash dividends to its share- 
holders and, in addition, the board of directors 
declared the second stock dividend in the com- 
pany's history. 
Regular quarterly dividends of $.20 a share 
were paid on March 1, May 15, August 15 and 
November 15, while the 4 per cent stock dividend 
was distributed to shareholders on March 5. 
On February 7, 1958, the board of directors 
declared the first quarterly cash dividend of the 
year and a 4 per cent stock dividend. The cash 
dividend, in the amount of $.20 a share, is payable 
on Mar~h 10 to shareh?l~ers of record on February 
21 , while the stock d1v1dend will be distributed 
on March 20 to shareholders of record on 
February 21. 
REVENUES 
An all- time company record 
Total operating revenues of Western Air Lines 
for 1957 were $42,218,951, an all-time record in 
the company's 32 years of continuous operation. 
In 1956, total operating revenues were 
$28,187,773. 
In its established status as a subsidy-free trunk- 
line carrier Western derived 93 per cent of oper- 
ating revenues from passenger traffic, while 
express, freight and other revenues accounted for 
4.5 per cent of the total. Revenues received for 
mail service accounted for only 2.5 per cent of 
1957 receipts. 
During the previous year, 93.1 per cent of total 
operating revenues was derived from passenger 
service, 4.1 from express, freight and other reve- 
nues, and 2.8 from mail receipts. 
One of the most critical problems of the airline 
industry today is the low level of passenger fares. 
brief balance sheet 
Western owns: 
Cash and U.S. Government 
securities . . .. . .. .. . . .... .. 
Owed by others . . ... . ... . . . 
Expendable parts and 
supplies .. . ... . . .... . . ... . 
Buildings and improvements, 
net .... .. ... . .. ......... . .. 
Flight and other equipment, 
net ......................... 
Deposits on new equipment 
Prepaid expenses . ......... 
Deferred charges and other. 
Western owes : 
Owed to vendors and others 
Federal income taxes - 
current and deferred . . , .. . 
Tickets sold but not yet used 
Notes payable- 
current and long-term . .. . . 
Debentures .... . .......... . 
Excess of what is owned 
over what is owed, or 
shareholders' equity .... ... . 
1957 
$ 7,332,034 
3,462,603 
922,432 
2,249,539 
22,402,940 
6,476,711 
834,973 
335,844 
44,017,076 
4,267,780 
3,147,672 
1,105,432 
13,905,000 
4,122,000 
26,547,884 
$17,469,192 
1956 
6,609,264 
3,267,448 
386,543 
2,140,645 
15,074,931 
3,360,213 
735,138 
500,898 
32,075,080 
3,138,518 
2,249,956 
818,371 
6,000,000 
4,877,000 
17,083,845 
14,991,235 
 Champagne Flights, setting new standards 
of airline service, provide travelers with 
maximum of personalized in-flight comfort. 
Completed in 1957, Western Air Lines 
Training Center at Los Angeles Airport 
headquarters now is in full operation. 
Based on a winning theme, the company's 
sales effort is being directed at the develop- 
ment oi new markets and special services. 
statement of source and 
disposition of funds for 1957 
Caught between nsmg cost and a 20-year-old 
fare structure, many of the nation's major sched- 
uled airlines, including Western, have appealed 
to the Civil Aeronautics Board for a realistic fare 
increase. 
While prices generally have risen nearly 100 
per cent in the past 20 years, the average U.S. 
airline passenger of 1957 actually paid less for 
his transportation than he did in 1938. 
Source of funds: 
Net income . . . . . . . .. .... . . .. . 
Depreciation and other 
non-cash charges . .. ..... . 
Deferred federal taxes on 
income . . ... . . ..... . .... .. . 
Sale of capital stock .... . . . . . 
Bank loans ......... . . . .... . 
Insurance company notes . . . 
Less: reductions in 
long-term bank loans ..... . 
Disposition of funds: 
Planes and other equipment 
including contract deposits 
Dividends: 
Cash . .. . ..... . .... . ...... . 
Payments in lieu of 
fractional shares - 
1957 stock dividend . ... . 
Decrease in working capital, 
excluding cash and U.S. 
Government securities .... 
Increase in cash and U.S. 
Government securities . . ... . 
$1,000,000 
8,005,000 
9,005,000 
1,100,000 
660,002 
29,396 
$ 2,401,914 
3,330,041 
849,000 
36,605 
~ 905,000 
14,522,560 
13,744,552 
689,398 
_ (634,160) 
13,799,790 
$ 722,770 
Western's management, which first called 
attention to the need for fare adjustments in 1951, 
is committed to a policy of improving and 
expanding the company's services. In order to 
discharge that responsibility in the face of steadily 
rising co ts, the company is vioorously pressing its 
petition for more economically sound fare levels. 
In accordance with the ivil Aeronautic 
Board's action approving petitions for a 4 per cent 
fare increa e, plus $1 per ticket, Western was 
granted an int rim increa e effective February 10, 
1958, pendino completion of th General Fare 
Inv tioation Case now before the C B. While 
the interim adjustment is con idered inadequate, 
th company applied for the temporary assistance 
while hor,efully looking toward award of a for- 
mula which will permit airlines to charge equi- 
table price for their service . 
EXPENSES 
Expansion brings sharp rise 
Total opera ting expense of W es tern ir Lines 
for the year 1957 wer $37,510,406; in 1956, th 
total was $25,674,523. 
 This substantial rise in the cost of doing busi- 
ness was, primarily, a re8ection of the company's 
marked expansion during the year. Portions of 
the increase are attributable to first-quarter oper- 
ations, contrasted to the 1956 period when a 
73-day strike shut down the company, and, in 
major measure, to additional seat-miles generated 
by new aircraft added to the Western 8eet during 
1957. 
Depreciation expense was $3,010,894, up 
$716,680 over 1956. This element of the expense 
complex, which, in effect, represents a pro rata 
recovery out of revenues of funds invested in 
properties and equipment, was equivalent to $3.55 
a share in 1957. 
The new series of Douglas DC-6B planes, 
operated during the year in both first-class and 
aircoach configurations, contributed to a record 
marketing of the company's principal product- 
passenger seat-miles. In 1957, for the first time, 
Western passed the "one-billion mark" in seat-mile 
production, offering 1,175,071,000 seat-miles to 
the traveling public. This represented a 59 per 
cent increase over the 1956 total of 740,174,000. 
Although the cost of wages and materials con- 
tinued to exact major economic pressures, the 
company has been able to hold the line on seat- 
mile and ton-mile production costs with some 
success. Operating expenses expressed in "cents 
per seat-mile produced" were $.032 in 1957, com- 
pared with $.035 in 1956 and $.031 in 1955 and 
1954. Expressed in "cents per ton-mile produced," 
operating expenses were $.273 in 1957, compared 
with $.298 in 1956, $.270 in 1955 and $.280 in 
1954. 
FINANCES 
Funds for planned growth 
Following the 1956 program which improved 
and expanded the financial structure of Wes tern 
Air Lines, the company in 1957 signed contracts 
for the delivery of five additional DC-6B aircraft 
and completed plans for other plant improvements. 
Arrangements were made in June for borrowing, 
on a long-term basis, an additional $9,000,000 
required to finance the program, over and above 
the $23,000,000 arranged for in the previous year. 
Working capital at the close of 1957 totaled 
$4,688,158, almost identical with the closing 1956 
figure. The ratio of current assets to current 
liabilities was $1.60 to $1, down slightly from the 
1956 ratio of $1. 72 to $1. 
Cash and U.S. Government securities on hand 
at the end of the year were valued at $7,332,034, 
up $722,770 over the level which existed at the 
close of 1956. The company's investment in 
aircraft and other properties was increased by 
$8,840,536 to $38,412,441 during 1957. Deposits 
on equipment-purchase con tracts totaled 
$6.476,711, an increase of $3,116,498 in 1957. 
WESTERN'S income dollar 
from U.S. mail 2.5 
from express, 
freight and 3. 7 
excess baggage 
from aircoach 
passenger 
,. services 
ftom all other 
sources, 
including 
roperty gains 
from deluxe 
passenger 
services 
22.9 
2.6 
68.3 
Western's long-term debt was increased to 
$16,827,000 during the year, up $7,150,000 from 
1956 final figures. The 1957 figures include 
$6,000,000 borrowed under the 1956 loan agree- 
ments and $3,005,000 under the new 1957 pro- 
gram. The 4 per cent convertible subordinated 
debentures were reduced to $4,122,000, a decrease 
of $755,000 during the year, re8ecting debentures 
converted into shares of the company's capital 
stock. 
SHAREHOLDERS AND STOCK 
7,500 investors own Western 
At the close of 1957, there were issued and 
outstanding 848,541 shares of Western Air Lines 
capital stock, an increase of 69,410 shares over the 
total of 779,131 shares outstanding at the end 
of 1956. 
The increase included 30,254 shares issued as a 
4 per cent stock dividend, 36,806 shares distributed 
upon conversion of debentures, and 2,350 shares 
issued through exercise of stock options. 
Residing in the 48 states and several foreign 
nations, the company's shareholders numbered 
approximately 7,500 at the end of the year, an 
increase of about 6.5 per cent over 1956. 
The e{}Uity of Western shareholders reached a 
record $17,469,192, or $20.59 a share, in 1957, an 
increase over the previous year of $2,477,957. 
 WESTERN'S expense dollar 
for gasoline 
and oil 
for materials, 
8.2 supplies and 
parts 
9.2 
7.4 for depre 
of equip 
for wages and 
salaries 
Shareholders' equity at the close of 1956 was 
$14,991,235, equivalent to a book value per share 
of $18.53 adjusted for the 1957 stock dividend. 
During the year, 275,700 shares of Western 
stock were traded on the New York Stock 
Exchange at prices ranging from a low of 17 to 
a high of 25, with a closing price of 20. On 
the Pacific Coast Stock Exchange, 16,233 shares 
were traded. Low for the year was 18, high was 
25, and the closing price was 20. 
EQUIPMENT 
Preparation for a fast future 
With passenger revenues up 49.5 per cent over 
1956, and authorized route mileage extended 
substantially beyond the previous year's limits, 
Western Air Lines in 1957 expanded and modified 
its fleet to keep pace with record demands for new 
and improved service. 
Seven DC-6B aircraft were received during 
1957, and nine additional planes are scheduled 
for 1958 delivery by the Douglas Aircraft Com- 
pany. By the fall of 1958, Western expects to have 
in operation over its system a fleet of 30 DC-6Bs, 
in both first-class configuration and the new 87- 
passenger aircoach design introduced in 1957. 
In December, the Lockheed Aircraft Company 
successfully tested the first 400-m.p.h. propjet 
Electra to roll off its Burbank assembly line as 
Western officials witnessed the maiden flight of 
the plane which is relied upon to place the com- 
pany in the forefront of a new age of high-speed 
competition. Western has ordered nine of these 
ultra-modern aircraft; five are scheduled for 1959 
delivery, four in the spring of 1960. 
At the close of 1957, the Western fleet was 
composed of 35 planes, including 17 60-passenger 
DC-6Bs, four 87-passenger DC-6B aircoaches, 
nine 40-passenger Convair 240s and five 22-pas- 
senger DC-3s. 
During the year, two DC-4s were retired from 
service, the last of a fleet which introduced sched- 
uled airline aircoach service to the West. The 
company plans to retire the five DC-3s still in 
service by the close of 1958. 
Completed in the fall of 1957, the company's 
new airline training center, a modern $1,000,000 
school at Los Angeles International Airport, now 
is in full operation. Principal features of the center 
are a DC-6B flight simulator, being used exten- 
sively to train pilots and flight engineers, and 
quarters of the Western Air Lines Stewardess 
School. 
Work progressed throughout 1957 on the com- 
pany's electronic reservations system which will 
usher in a new era of fast customer service in 
1958. Designed to expedite automatically more 
than 90 per cent of all flight reservations, the 
Resetron will automatically check space and con- 
firm reservations in a matter of seconds from all 
major centers on the system. It promises to provide 
passenger service employees with the electronic 
tools necessary to maintain pace with route and 
flight pattern expansion. 
ROUTE DEVELOPMENT 
Most extensive in WAL history 
The most substantial period of growth and 
expansion in the 32-year history of Western Air 
Lines was recorded in 1957 when the company 
inaugurated service over 2,449 miles of new 
routes, including the 1,555-mile Los Angeles- 
Mexico City airway awarded to Western in 1946. 
Carefully selected for thorough training, Western's 
smartly-uniformed stewardesses are skilled in hospitality. 
 Western's system at the close of 1957 was certifi- 
cated over 9,153 route miles in 13 western states, 
Canada and Mexico as years of long-range plan- 
ning were climaxed in a series of favorable Civil 
Aeronautics Board decisions. 
Culmination of an 11-year campaign to provide 
regular, scheduled air transportation between 
western North America and Mexico came on July 
15 when the company became the first U.S. air- 
line to link major cities of the West with Mexico 
City via the Los Angeles gateway. 
Daily nonstop service over the 1,555-mile inter- 
national route was inaugurated after a long- 
awaited reciprocal civil air agreement between the 
federal governments of the United States and 
Mexico was signed on March 7. In less than 24 
hours, Western, which had held Civil Aeronautics 
Board authority to operate the route since 1946, 
was designated by the President to inaugurate the 
long-sought service. 
Coordinated by a special Mexico Service Com- 
mittee, myriad details of preparation for launching 
a major'international route were given top priority 
by the company. As a result, Western became the 
first U.S. airline to begin operations under the 
bilateral agreement as leading government, civic 
and business executives of both nations partici- 
pated in a memorable inaugural program. Traffic 
over the new route has developed steadily and the 
company is hopeful that it will be able to obtain 
authority to increase schedules soon. 
On December 1, a four-year program to provide 
strong regional air service between Phoenix and 
other western metropolitan centers came to fru- 
ition in the inaugural of regular service over the 
894-mile route between San Diego and Denver, 
via Phoenix, capital city of Arizona. Impact of the 
newest link in the Wes tern system can be realized 
from a brief study of the accompanying route map 
illustrating in graphic form how the service pro- 
vides new opportunities for passenger traffic, new 
development of the company's "sun country'' 
theme, and new operational economies. Of par- 
ticular note is the company's ability to offer one- 
carrier service between Arizona and the northern 
tier of western states. Appeal of one of the unsuc- 
cessful applicants in the case against the CAB's 
authorization of Western service over this route 
will be heard by the U.S. Court of Appeals for 
the District of Columbia circuit early in 1958. 
At the close of the year, the CAB authorized 
the company to inaugurate nonstop service between 
Los Angeles and Phoenix early in 1958 when the 
federal air policy panel issued a supplemental 
opinion on Western's petition for reconsideration 
of an earlier bid for the 368-mile route which the 
board had rejected. This decision will make pos- 
sible increased development of the Phoenix service 
Modern Western offices in Phoenix now are serving as a 
travel center for passengers on the newest route. 
complex, with special emphasis on travel from the 
Pacific Northwest. 
In other far-reaching year-end action, transfer 
of air service for eight small communities on 
Western's system to local service carriers was 
recommended by the CAB examiner acting favor- 
ably on the company's request in the Seven States 
Area Investigation. 
Acting in accordance with established CAB 
policy separating subsidized local service from 
trunkline operations wherever possible, the exam- 
iner's recommendation calls for suspension of 
Western service at Alliance, Scottsbluff, Chadron, 
Hot Springs, Spearfish, Brookings, Mankato and 
Rochester. A final CAB decision in this case is 
expected in 1958. 
Hearings were held in 1957 on Western's 
proposal in the Montana Local Service Case to 
transfer to local service carriers authority to serve 
Ogden, Logan, Jackson, Lewistown, and Cut 
Bank. Procedural steps in this case should be 
completed in 1958. 
Substantial operating economies can be realized 
from final authority to transfer service at these 
points in favor of subsidized lines, as well as 
further improvements in the company's trunkline 
services. 
Meanwhile, Western suspended service at 
Cedar City on Jan. 2, 1958, in accordance with the 
CAB's decision in the Service to Phoenix Case. 
In 1957, the company entered the Dallas-to-the- 
w est Service Case, a CAB proceeding now under- 
way which is expected to determine the air service 
needs of Dallas, Tex. Proposing to link the key 
southwestern city with Los Angeles and San 
Francisco-Oakland, as well as San Diego, Las 
Vegas, Phoenix, El Paso, Albuquerque and Ft. 
Worth, Western presented its case in support of 
the City of Dallas' petition for additional service. 
Hearings were held in 1957 on the Chicago- 
Milwaukee-Twin Cities Case in which the com- 
pany is seeking authority to provide competitive 
 air service between Minneapolis-St. Paul and 
Chicago. A CAB decision in this important route 
case is expected during 1958. 
The company anticipates that in 1958 the U.S. 
Government will continue to press for a bilateral 
agreement with Canada which would implement 
Western's dormant authority to serve Calgary in 
the Province of Alberta, Canada. 
Although the CAB took no action during the 
year on the company's applications to serve Spo- 
kane, Wash.; Sacramento, Calif.; or Boise, Ida., 
the petitions may gain board attention during the~ 
corning year. 
PERSONNEL 
Experience, training are keys 
The company's board of directors, composed 
primarily of men representing the principal regions 
served by Wes tern Air Lines, was expanded to 16 
members during 1957. 
In April, Mr. Dudley Swim of Monterey, Calif., 
well-known in the fields of investment and indus- 
try, was elected to the board. In June, Mr. Wilford 
H. Gonyea, Oregon industrialist and lumberman, 
joined the Western board. In December, Mr. 
Goodrich Lowry, president of the Northwest 
Bancorporation of Minneapolis, was elected to the 
board to replace the late Mr. Joseph F. Ringland. 
Mr. Ringland, who had served the company 
with distinction since joining the board of directors 
in 1952, died on overnber 8 after an extended 
illness. His death brought to a close a distinguished 
banking career which began in 1924 and ended 
with a 12-year tenure as president of the orth- 
western National Bank of Minneapolis. 
Building on a core of experienced personnel, 
and devoting special attention to the training and 
development of management staff members, 
Western increased its personnel by 18 per cent 
during 1957, adding 430 men and women to its 
rosters which, at the close of the year, carried the 
names of 2,773 employees. 
Average length of employee service at the close 
of 1957 was 5.3 years, with 45 per cent of all 
personnel wearing 5-year service pins. Ten-year 
rnblerns have been awarded to 617 men and 
women, representing 22 per cent of employees. At 
the top of Western's seniority roster are 20 men 
with a quarter-century of company service, includ- 
ing three veterans who this year will pass the 
30-year milestone. 
The foremen responsible for maintenance and 
overhaul of the aircraft fleet have the highest 
average seniority with 17.4 years service to their 
credit. Department directors at the company's 
general offices share with Bight captains an aver- 
age of 14 .4 years service, while station managers 
are credited with a 13.6-years average. 
AFTER 32 YEARS, 
EVERY 23 SECONDS! 
In 1957, Western Air Lines carried 1,379,653 pas- 
sengers in giant aircraft flying over a route system 
reaching 9,153 miles to 47 cities in three nations. 
With a plane arriving or departing from a Western 
city every 2.5 minutes throughout the year, the 
company boarded an average of 3,780 air travelers 
every 24 hours. Consuming more than 110,000 gal- 
lons of high-test gasoline every day, the aerial 
fleet covered 71,450 miles between dawns. Relax- 
ing in airborne comfort, travelers enjoyed 687,445 
meals, savored 1,772,600 cups of coffee and sipped 
glasses of Champagne Flight private stock in rec- 
ord numbers. 
It was not always so. 
On April 17, 1926, the day Western, the nation's 
oldest airline, began operations, its first east- 
bound Douglas M-2 biplane was refueled from a 
100~gallon barrel with a hand pump (below). The 
little two-place aircraft had a top speed of 115 
m.p.h., and the lone passenger sat on a sack of 
mail. The lot of air travelers improved in the early 
'30s when Western provided box lunches aboard 
its Fokker F-10s, first three-engine transports in 
airline service (above). The first route was only 
670 miles long, and at the end of 1926 Western 
had carried 209 passengers. 
Today, WAL boards a passengerevery23 seconds! 
 Two-thirds of the company's employees are men, 
one-third are women. Ninety per cent of person- 
nel are represented by the seven labor unions with 
which Western maintains agreements. At the end 
of 1957, contracts were signed with four unions, 
while negotiations were underway with union 
representatives of the pilots, the mechanics and the 
office and station personnel. 
A large majority of employees participated in 
Western's group insurance program during the 
year. As of December 31, 95 per cent were sub- 
scribing to accident and sickness insurance, 88 
per cent to hospitalization coverage, and 70 per 
cent to the life insurance policies offered. Financed 
jointly by the company and its employees, the 
group program is available to all personnel. 
During the year, employees and their families 
received $189,520 in benefits from the insurance 
plan, including $52,361 in accident and sickness 
benefits and $127,559 to defray hospitalization 
expenses. 
At the close of the year, 77 per cent of eligible 
employees were participating in the company's 
contributory retirement plan. In operation for six 
years, the program has become a substantial factor 
in the long-range planning of many key 
employees. To date, the company has expended 
approximately $636,000 for past-service policies, 
at no cost to personnel, and has contributed nearly 
three times that figure to current-service premiums. 
Throughout 1957, Western maintained its tra- 
ditionally liberal free-transportation program for 
employees and their families. During the year, 
13,500 space-available passes were issued by the 
company's pass bureau for travel over the Western 
system, and several thousand additional passes 
were arranged through reciprocal agreements with 
other airlines. Value of the company-system passes, 
if computed on the basis of average first-class fares, 
was approximately $750,000, an average of $272 
worth of free transportation for every man and 
woman on the payroll. It is estimated that the 
value of off-line passes would double the latter 
figure. 
The Westernaire Federal Credit Union, pro- 
viding personalized savings and loan service to 
employees, enjoyed a banner year, passing the 
$1,000,000 total-assets mark for the first time in 
its 10-year history. Seventy-three per cent of all 
employees are members of the credit union. 
Early in 1957, a management-development pro- 
gram was inaugurated at the University of 
Washington for key members of the Western staff. 
Designed to prepare selected men for increased 
future responsibilities while improving their pres- 
ent managerial abilities, the graduate-level course 
began with an intensive study session and was 
followed throughout the year by a seminar series. 
SALES AND SERVICE 
New markets for development 
Matching the company's major route extensions 
and increased ability to serve the traveling public, 
the Wes tern Air Lines sales effort during 195 7 
was directed at development of new markets and 
new services. 
Number of passengers carried for the year was 
49 per cent above the abridged 1956 total as 
1,379,653 air travelers boarded the company's 
planes at 4 7 cities throughout the system. 
Revenues included $29,412,952 from deluxe 
traffic and $9,830,159 from aircoach travel, 
increases of 42 per cent and 76 per cent, respec- 
tively. The latter rise clearly re8ects the expanded 
offering of Western's economy air transportation 
with the new 87-passenger DC-6B aircoaches. 
Cargo revenue totaled $1,596,246, up 67 per 
cent over 1956, while air mail revenue increased 
to $1,067,404, of which $881,825 was from regular 
air mail and $185,579 from transportation of sur- 
face mail by air. 
brief statement of income 
Western's income came from: 
Passengers . .. .. ...... ..... . 
Express, freight and baggage 
Mail ........................ . 
Gain on disposal of property 
Other income .. ... ....... .. . 
Western's expenses were: 
Wages and salaries ......... 
Social security, group 
insurance and 
retirement plans ....... . .. 
Gasoline and oil ............ . 
Materials and repair parts ... 
Depreciation ................ 
Advertising and publicity .... 
For service to passengers ... 
Rentals and landing fees .... 
Insurance ................... 
Interest ....... ... ........... 
Taxes ....................... 
Utilities and services ........ 
Other costs ................. 
Net Income ................... . 
1957 
$39,243,111 
1,596,246 
1,067,404 
708,077 
443,301 
43,058,139 
14,334,769 
1,086,628 
6,309,060 
3,350,555 
3,010,894 
1,297,259 
2,271,800 
980,205 
822,425 
780,419 
3,754,855 
1,491,331 
1,166,025 
40,656,225 
$ 2,401,914 
1956* 
26,249,113 
954,210 
775,481 
2,694,415 
270,248 
30,943,467 
10,283,297 
853,786 
3,729,882 
2,235,558 
2,316,439 
873,097 
1,487,768 
759,975 
652,770 
393,610 
2,766,848 
737,691 
808,288 
27,899,009 
3,044,458 
Operations were suspended from January 9 
to March 22, 1956, because of a strike. 
 Passenger load factor for the year was 59.8 per 
cent as 702,727,000 of the 1,175,071,000 seat- 
miles produced were sold. The 2.1 point decline 
from the 1956 load-factor figure was largely the 
result of the widespread fourth-quarter decline in 
business activity. Extended to keep pace with the 
59 per cent increase in seat-miles produced by new 
aircraft and new routes, the company's seat-miles- 
sold total was, nonetheless, up 53 per cent over 
1956. 
New sales centers were opened at Minneapolis, 
Mexico City, Ontario, Phoenix and in the San 
Francisco Merchandise Mart during 1957, and in 
January 1958 a new district office was established 
at the Disneyland Hotel, adjacent to the famed 
southern California playground. 
New popularity was won during the year by 
the company's famous Champagne Flights, a name 
now registered for Western's exclusive use. After 
nearly four years, this new standard of person- 
alized in-flight service continues to headline 
Western' s Hight schedules and sales programs. 
During the year, the Champagne Flight's 
morning counterpart, the "Hunt Breakfast," was 
introduced to selected Rights with immediate 
popular acceptance. 
In April, delivery of new equipment enabled 
the company to introduce all-DC-6B service, both 
first-class and aircoach, to principal Pacific Coast 
cities, completing a modernization program which 
also included assignment of Convair aircraft to 
intermountain routes and retirement of DC-3s 
from all but a segment of the Western system. 
July proved to be a top month for sales effort as 
the new international route between Los Angeles 
and Mexico City was opened, and a new nonstop 
service between Los Angeles and Portland was 
inaugurated. In December, service was introduced 
to Phoenix with special promotions designed 
around the appeal of winter vacations. The most 
complete program of "sun country" advertising 
and promotion ever developed by the company 
was employed to exploit the attractions of Mexico 
City, Las Vegas, Palm Springs, southern Cali- 
fornia and Phoenix, including preparation for the 
inaugural of nonstop Los Angeles-Phoenix service 
on February 18, 1958. 
To provide the manpower and facilities required 
to produce an expanded campaign, Western in 
April retained Batten, Barton, Durstine & Osborn, 
Inc. as the company's advertising agency. One of 
the nation's top-rated advertising firms, 66-year-old 
BBDO now is producing an expanded 1958 pro- 
gram based on the theme, "Western's the Won- 
derful Way to Fly." 
AWARDS 
Company wins national honors 
In 1957, Western Air Lines received a number 
of noteworthy honors, including awards for safety, 
management, stockholder relations and advertis- 
ing. 
Recognition of the company's primary concern 
- safety of operation - was accorded in the Na- 
tional Safety Council's Award of Honor. 
Analysis of Western's operations and accom- 
plishments in 1957 by the American Institute of 
Management resulted in presentation of a merit 
citation for excellent management to the company 
and placement on the AIM honor roll with only 
494 other U.S. and Canadian organizations 
selected on the basis of functional management 
audit. 
For the second consecutive year, Western was 
awarded United Shareholders of America recog- 
nition for "good management-shareholders rela- 
tions." 
The Socrates Award, top national prize for 
transportation advertising, was won by the com- 
pany for "exceptional showmanship in promoting 
air travel" in an annual competition among more 
than 1,000 companies. 
ALBUQUERQUE 
     
EL PASO 
 
DALLAS 
00 
FORT WORTH 
 INTERNATIONAL CELEBRATION-In 1957, Western Air Lines became the first U.S. air 
carrier to link major cities of the West with Mexico City via the Los Angeles gateway. Less 
than 24 hours after the long-awaited civil air agreement was signed by the federal govern- 
ments of the United States and Mexico, Western was designated by the President to 
inaugurate flights over the route granted to WAL in 1946 by the Civil Aeronautics Board. 
Government officials, civic leaders and business executives of both nations participated 
in memorable inaugural programs at Los Angeles (above) and Mexico City (below). 
Among the 
1,379,653 
Western 
passengers 
in 1957 were 
these famous 
personalities 
. . . . . . . . . . . . 
ENTERTAINER-Lawrence 
Welk, the "champagne 
music" maestro, waves to 
friends before departure 
CHIEF JUSTICE-Kotara 
Tanaka, lead ing Japanese 
jurist, and his wife, are 
greeted on world tour by 
WESTERN 
FIRST CREW-Welcomed by WAL President Terrell C. 
Drinkwater, first Western Air Lines crew to land at Sky 
Harbor Airport in Phoenix launches new "sun country" 
service linking the Arizona capital with other key cities 
in the West. Major route award was the climax of a four- 
year program to win Civil Aeronautics Board authoriza- 
tion to inaugurate scheduled service to the resort area. 
FILM FAVORITE-Former 
child star Shirley Temple 
arrives in Hollywood to pro- 
duce her new series of 
LATIN AMERICANS-Con- 
s u Is of eight Western 
Hemisphere nations board a 
Western plane for a brief 
1-,...,1!....J- .. !-:..J.. :_ I - - \J ___ _ 
I 
1n the news 
By its very nature, a major commercial 
airline is newsworthy. The speed of its 
operations, the grandeur of its giant air- 
craft, the personal drama in the lives of its 
passengers-all are charged with that magic 
ingredient called "news value." 
Serving 47 cities on a 9,153-mile system 
in 13 western states, Canada and Mexico, 
Western Air Lines links the key centers of 
the hemisphere's most dramatic regions, 
areas where progress, development and 
future planning are vibrantly conscious fac- 
tors in the lives of fast-thinking, fast-moving 
people. 
The year 1957 was a period of almost- 
continuous news stories for Western as the 
company pursued its basic policy of pro- 
viding public services designed to merit 
public approval. 
The new routes inaugurated, the unique 
promotions conducted, the new aircraft 
tested for future Bights-all attracted atten- 
tion of the communications media through 
which Western tells its story. 
And, adding luster to the glamour of 
Hying were the famous passengers who, day 
after day, selected Western as "the won- 
derful way to By." 
COWBOY STAR - Roy 
Rogers, motion picture and 
television favorite of young 
America, leaves on a per- 
GRID COACH - Henry 
"Red" Sanders, famed 
UCLA football mentor, and 
Mrs. Sanders are off on a 
IN PRODUCTION-Model of the ultra-modern Lockheed Electra propjet appears 
in Western Air Lines markings. Now in production after highly successful tests, the 
Electra will spearhead WAL entry into era of high-speed competition in 1959-60. 
AUTHENTIC-Most colorful equipment acquired by Western Air Lines in 1957 was 
this 1906 San Francisco cable car which is being displayed in an extensive promo- 
tional campaign throughout the West. Completely renovated and motorized, "No. 
44" already has proved a popular attraction in California and during 1958 will be 
seen in several cities on the company's system during 100,000-mile tour. 
MEXICAN OFFICIALS-Ing. 
Gustavo Rocha Sagahon 
(left) and Gen. Alberto 
Salinas Carranza, and his 
---?~-- ,:. ___ ~A - ~. :-- 
T RAVEL EXP ER T - 8 e rt 
Hemphill, American So- 
ciety of Travel Agents 
president, is welcomed 
_ ,..._ __ - -' - r'-1- - - . - - - - - r-1 !- I-J.. 
FAMOUS COUPLE-Sing- 
ing favorite Bing Crosby 
and his bride, Kathy Grant, 
leave Las Vegas via Western 
_ .r. ... __ .&.L. - ! - --'-' !- - 
 a decade of growth 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
financial summary 
Revenues:** 
Passenger .... ....... ... ... . . . . ... . . . ... . 
Express, freight and excess baggage .. . 
Mail ... . . . ... . ..... .... . ............. .. . . 
Other .. . . . .. . , .. . .. .. . . . ... . . . .. .. . . . . . . . 
Total Revenues . . . . .... . ........ . . . 
Operating Expenses:** 
Depreciation . .. . .... . . . . ... , . . . . ... . . .. . 
Payroll . ... .. .... . . .. .. ...... .. . . .. . ..... . 
Other . ..... . . ... . . . .. . ..... .. ... . . .. ... . . 
Total Operating Expenses .. . .... . 
Operating Income** . ... . ...... ... ..... . .. . . . . . 
Other Income** .. .. . ... .. . . .. ..... ..... ... . . . 
Provision for Federal Taxes on Income** ... . 
Net Income** . . . .. ... ... . .. . ..... . 
Earnings per share0 ..... . ... ........... .... . 
Dividends paid per share: 
Cash0 . . .. . . . .. . .. .. . . . . ... . . ... . ... . .. . 
Stock . ......... , . ............. . . . ... . ... . 
Shares outstanding**0 .. ... . . . ..... ....... . . . 
Shareholders' equity-total** . . ........... . .. . 
Shareholders' equity-a share0 ....... . .... . 
Working capital** . ................ ........... . 
Long-term debt** .... . . . ......... . . . . . .... .. . . 
Properties and equipment- net** ............ . 
Total assets** ................. . ..... , .... . .. . 
operating statistics 
Route Miles . . . . ... . .. . . .. .. . ... . , .... . .... .. . 
Available Ton Miles** .......... . ... .. .. . .... 
Revenue Ton Miles** ............... . ... . .... 
Passengers and Tonnage Carried: 
Revenue passengers ................ . .. 
Mail tons ... . ....... ...... . .. . .. . . ... ... 
Express and freight tons .......... . ... . 
Revenue Miles Flown:** 
Airplane miles ....... .. .......... . .. . ... 
Passenger seat miles ................ . .. 
Passenger miles ........ . ............ . . 
Mail ton miles ............. .............. 
Express and freight ton miles ........... 
Other Statistics: 
Passenger load factor .................. 
Average length in miles per 
passenger trip ................. . ...... 
Average revenu e per passenger mile .... 
Number of employees end of year ...... 
1957 
$39,243 
1,596 
1,067 
313 
42,219 
3,011 
14,335 
20,164 
37,510 
4,709 
18 
4,727 
2,325 
$2,402 
$2.83 
0.79 
4% 
849 
$17,469 
20.59 
4,688 
16,827 
24,652 
$44,017 
1957 
8,799 
137,640 
74,468 
1,379,653 
5,367 
6,170 
21,896 
1,175,071 
702,727 
3,092 
4,026 
% 59.8 
509 
$.0558 
2,773 
1956* 
26,249 
954 
775 
210 
28,188 
2,294 
10,283 
13,098 
25,675 
2,513 
2,331 
4,844 
1,800 
3,044 
3.76 
0.75 
4% 
809 
14,991 
18.53 
4,600 
9,677 
17,216 
32,075 
1956* 
6,350 
86,196 
48,481 
928,746 
4,034 
4,166 
14,851 
740,174 
458,131 
2,212 
2,455 
61.9 
493 
.0573 
2,343 
1955 
28,756 
1,185 
862 
236 
31,039 
2,151 
11,057 
13,798 
27,006 
4,033 
~ ) 
3,832 
1,850 
1,982 
2.47 
0.83 
802 
12,430 
15.49 
2,784 
3,484 
11,208 
23,332 
1955 
5,525 
100,015 
54,999 
1,092,578 
4,897 
5,435 
18,335 
870,596 
514,677 
2,621 
3,207 
59.1 
471 
.0559 
2,130 
1954 
22,423 
968 
764 
326 
24,481 
1,761 
9,239 
11,505 
22,505 
1,976 
333 
2,309 
850 
1,459 
1.89 
0.56 
773 
10,786 
13.96 
1,490 
3,755 
13,146 
20,204 
1954 
5,525 
80,261 
42,669 
834,910 
3,283 
4,276 
15,842 
721,255 
402,255 
1,669 
2,556 
55.7 
482 
.0557 
1,864 
1953 
20,302 
846 
875 
853 
22,876 
1,718 
8,367 
10,300 
20,385 
2,491 
(56) 
2,435 
1,250 
1,185 
1.54 
0.56 
772 
9,746 
12.63 
755 
2,072 
9,844 
18,123 
1953 
5,525 
68,580 
38,088 
838,732 
3,284 
4,206 
14,450 
613,814 
359,965 
1,610 
2,100 
58.6 
429 
.0564 
1,813 
Operations were suspended from January 9 to March 22, 1956, because of a strike. 
1952 
16,250 
662 
719 
964 
18,595 
1,019 
7,067 
7,674 
15,760 
2,835 
(103) 
2,732 
1,500 
1,232 
1.60 
0.56 
772 
8,991 
11.65 
1,364 
2,903 
9,702 
18,564 
1952 
5,016 
48,557 
31,434 
774,079 
3,243 
3,729 
12,631 
453,332 
298,931 
1,358 
1,524 
66.0 
386 
.0544 
1,649 
1951 
13,688 
507 
1,212 
875 
16,282 
998 
6,084 
6,666 
13,748 
2,534 
280 
2,814 
1,425 
1,389 
2.34 
0.46 
594 
6,396 
10.77 
435 
1,924 
6,588 
13,802 
1951 
5,016 
43,036 
27,549 
691,322 
3,419 
3,191 
11 ,487 
401,720 
259,693 
1,449 
1,282 
64.7 
376 
.0527 
1,459 
0 Based on shares outstanding at close of respective periods adjusted fo r stock dividends paid in 1957 and 1956 . 
.. 000 omitted. 
1950 
11,395 
497 
2,090 
264 
14,246 
1,124 
5,353 
6,133 
12,610 
1,636 
(196) 
1,440 
690 
750 
1.32 
567 
5,045 
8.90 
981 
2,231 
6,621 
10,657 
1950 
5,016 
44,515 
24,697 
619,624 
2,150 
3,396 
11,783 
414,169 
233,118 
978 
1,442 
56.3 
376 
.0489 
1,279 
1949 
8,471 
313 
2,504 
246 
11,534 
1,335 
4,855 
4,374 
10,564 
970 
(258) 
712 
391 
321 
0.57 
567 
4,295 
7.58 
243 
3,113 
7,171 
10,579 
1949 
4,727 
32 ,034 
16,383 
422,193 
1,359 
2,435 
9,496 
299,503 
155,747 
567 
926 
52.0 
369 
.0544 
1,226 
1948 
7,813 
483 
1,293 
31 
9,620 
1,164 
4,973 
4,225 
10,362 
(742) 
(186) 
(928) 
(589) 
(339) 
(0.60) 
567 
3,974 
7.01 
(315) 
3,551 
8,094 
12,946 
1948 
4,727 
29,534 
14,660 
353,569 
1,543 
2,702 
8,707 
243,771 
135,724 
574 
1,089 
55.7 
384 
.0576 
1,285 
 For the year ended 
December 31, 1957 
(with comparative 
ti gures for 1956) 
For the year ended 
December 31, 1957 
statement of income 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Operating Revenues: 
Passenger . ........ . .... . . . .... . .... . .. . ..... . ... .. .... ... ... . 
Express, freight and excess baggage . . . .. ... . . . ... . .... .. . . 
Charter and other transport service ... . . . . ... . .. ... ... .. . . . 
Mail . . ........ . . .... . .... .... .. ... .. . . . .. .. .. .... . . ... . ... . . . . 
Incidental revenue (net) .. ..................... . ..... . . . .... . 
Operating Expenses: 
Flying operations ... .. ... .. .... . ... . ... . . . . . ... . ... ... ... .. . . 
Maintenance .............. . ........... . ............. .... ... . 
Passenger service .......... .. .................... . ... . .... . . 
Aircraft and traffic servicing ......... .. .. .. .. . .... .... . . .. . 
Promotion and sales . . .. .. . . . . . . .......... . ... . ... . . . . . . .. . . 
General and administrative ......... . .... . .. . . . . . ... . . . . . . . . 
Depreciation ...... . .. . ...... . .......... .. ... . , ... . .. . ....... . 
Operating Income ... . ... . ...................... . . . . . 
Non-Operating Income: 
Gain on disposition of property . . . ... ..... . ............... . 
Other . ..... . . . ... . .................. . . . . . ..... ............... . 
Non-Operating Charges: 
Interest .... . ...... .... ... .. .. . . ........ . .... .. .... , ...... . .. . 
Other .............. ......................... ........ . ..... . .. . 
Income before Federal Taxes on Income . . . . ... . ... . 
Provision for Federal Taxes on Income (Note 1) ...... . .... . . . 
Net Income . . . . .. . . ... . . . . . . .... . .... .... .... ... .. .. . 
1957 
$39,243,111 
1,596,246 
147,827 
1,067,404 
164,363 
42,218,951 
12,533,097 
6,094,328 
3,556,375 
5,763,615 ( 
4,596,057\ 
1,956,040 
3,010,894 
37,510,406 
4,708,545 
708,077 
131,111 
839,188 
780,419 
40,400 
820,819 
4,726,914 
2,325,000 
$ 2,401,914 
*Operations were suspended from January 9 to March 22, 1956 because of a strike. 
1956* 
$26,249,113 
954,210 
119,371 
775,481 
89,598 
28,187,773 
7,915,106 
4,484,302 
2,366,755 
6,974,380 
1,639,766 
2,294,214 
25,674,523 
2,513,250 
2,694,415 
61,279 
2,755,694 
393,610 
30,876 
424,486 
4,844,458 
1,800,000 
$ 3,044,458 
statement of surplus 
earned surplus 
Amount as of December 31, 1956................................ $ 8,653,684 
Net income for 1957 .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,401,914 
Excess of proceeds over par value of : 
36,806 shares of stock issued upon conversion 
of debentures ........... ............................. . ... . 
2,350 shares issued under restricted stock option plan .. . 
Excess of market value over par value of 30,254 shares 
paid as a stock dividend (Note 2) ....................... . 
Dividends paid : 
Cash - $0.80 a share, annual rate ......... , .............. . 
Stock-4% (Note 2) ...................... , ................ . 
Amount as of December 31, 1957 (Note 3) .................... . 
11,055,598 
660,002 
755,492 
$ 9,640,104 
capital surplus 
$ 5,558,420 
692,030 
34,255 
695,842 
6,980,547 
$ 6,980,547 
 annual report 
Current Assets: 
Cash. 
U. S.Treasury Bills at cost and accrued interest . ...... .. .. . . . 
Receivables: 
Traffic balances (net of allowance 
for doubtful accounts $50,000) . . . 
U.S. and State Government Departments ..... . .. .. . . 
Other . 
Expendable parts and supplies (Note 7) . 
Prepaid expenses . 
Total Current Assets ... 
Sundry securities . 
Properties and equipment at cost: 
Flight equipment . 
Buildings on and improvements to leased property .... 
Other property and equipment .. 
Less allowance for depreciation . 
Deposits on equipment purchase contracts (Note 4). 
Deferred charges . 
assets 
1957 
$ 5,337,991 
1,994,043 
2,443,467 
838,393 
180,743 
3,462,603 
922,432 
834,973 
12,552,042 
94,221 
31,268,978 
3,794,637 
3,348,826 
38,412,441 
13,759,962 
24,652,479 
6,476,711 
241,623 
$44,017,076 
1956 
$ 4,625,094 
1,984,170 
2,028,677 
1,039,722 
199,049 
3,267,448 
386,543 
735,138 
10,998,393 
74,051 
23,801,634 
3,531,863 
2,238,408 
29,571,905 
12,356,329 
17,215,576 
3,360,213 
426,847 
$32,075,080 
 balance sheet as of December 31, 1957 
(with comparative figures for 1956) 
liabilities 
Current Liabilities: 
Current portion of bank debt. . .... ... . . ... . ............ . .... ... . 
Accounts payable 
Accounts payable-taxes collected from others ... . .... .. . 
Accrued salaries and wages ............. . 
Other accrued liabilities . 
Air travel plan deposits . 
Unused transportation. 
Federal taxes on income (estimated ) . 
Total Current Liabilities . 
Long-term debt (Note 3) : 
Notes payable to bank (net of current portion 
included in current liabilities) .. 
Notes payable to insurance companies . 
4% convertible subordinated debentures 
due June 1, 1971 ... . 
Deferred federal taxes on income (Note 1) .. 
Commitments and contingent liabilities (Note 4) 
Retirement plans (Note 5) 
Shareholders' Equity: 
Common stock-$1.00 par value per share 
Authorized 2,000,000 shares (Notes 3 and 6) 
Issued 848,541 and 779,131 shares respectively . 
Capital surplus 
Earned surplus (Note 3) . 
1957 
$ 1,200,000 
1,544,416 
523,799 
1,407,370 
486,620 
305,575 
1,105,432 
1,290,672 
7,863,884 
4,700,000 
8,005,000 
4,122,000 
16,827,000 
1,857,000 
848,541 
6,980,547 
9,640,104 
17,469,192 
$44,017,076 
---- 
1956 
$ 1,200,000 
1,174,868 
409,446 
1,046,206 
219,423 
288,575 
818,371 
1,241,956 
6,398,845 
4,800,000 
4,877,000 
9,677,000 
1,008,000 
779,131 
5,558,420 
8,653,684 
14,991,235 
$32,075,080 
 PEAT, MARWICK, MITCHELL & Go. 
CERTIFIED PUBLIC ACCOUNT.A..'ITS 
618 SOUTH SPBlNO STREET 
LOS ANGELES 14, CALIF. 
ACCOUNTANTS' REPORI' 
To the Board of Directors 
'Western Air Lines, Inc.: 
We have examined the balance sheet of 'Western Air 
Lines, Inc. as of December 31, 1957 and the related statements 
of income and surplus for the year then ended. Our examination 
was made in accordance with generaliy accepted auditing 
standards, and accordingiy included such tests of the accounting 
records and such other auditing procedures as we considered 
nece saary in the circumstances. 
In our opinion, the accompanying balance sheet and 
statements of income and surplus present fairiy the financial 
position of 'Western Air Linea, Inc. at December 31, 1957 and 
the results of its operations for the year then ended, in 
conformity with generaliy accepted principles of accounting 
which, l!xcept for the changes (of which we approve) resulting 
from revised requirements of the Civil Aeronautics Board as 
eet forth in note 7 of notes to financial statements, have been 
applied on a basis consistent with that of the preceding year. 
Loa Angeles, California 
February 10, 1958 
notes to financial statements 
Note 1. Federal Taxes on Income. Federal income tax re- 
turns for 1955 and 1956 are in process of examination by the 
U.S. Treasury Department. Provision has been made for all 
known income tax liabilities. 
Depreciation for federal tax purposes will, through 1960, exceed 
that recorded on the books of account as a result of deducting 
accelerated depreciation on the tax returns. Accordingly, the 
federal tax provision for 1957 includes $849,000 to offset the 
estimated effect on federal taxes which will occur in the years 
1961-64 when depreciation recordable on the books of account 
will be more than that allowable for federal tax purposes. 
Note 2. Stock Dividends. On March 5,1957, the company paid 
a stock dividend of 4% on the shares outstanding as of February 
15,1957. For the 30,254 shares thus issued and the cash pay- 
ments of $29,396 in lieu of fractional shares, the earned surplus 
account was charged $755,492, with $695,842 being transferred 
to capital surplus and $30,254 to the capital stock account. The 
charge to earned surplus was based upon the closing price of 
$24.00 a share on the New York Stock Exchange on January 31, 
1957, the day preceding the declaration by the Board of Directors . 
In 1958, on February 7, a like 4% stock dividend was declared 
payable March 20, 1958, to shareholders of record on February 
21, 1958. 
Note 3. Long-Term Debt. The bank and insurance company 
loans summarize as follows: 
Bani< loans 
1956 Agreement for $6,000,000 
borrowed in 1956. Interest 4%. 
1957 Agreement for $3,000,000- 
$1,000,000 borrowed in 1957. 
Interest 5%, 
Payable 
$100,000 a 
month 
$50,000 a 
mo. effective 
Oct. 1, 1961 
Insurance Company loans Payable 
1956 Agreement for $12,000,000- $1,200,000 
$6,000,000 borrowed in 1957. annually effective 
Interest 4 %. Sept. 1, 1962 
1957 Agreement for $6,000,000- $600,000 annually 
Maturity 
Jan. 2, 
1962 
Sept. 1, 
1966 
Maturity 
Sept. 1, 
1970 
$2,005,000 borrowed In 1957. effective Sept. 1, 
Interest 5%, Sept. 1, 1966 1975 
Amounts remaining for draw-down total $5,995,000 in 1958 
(including $3,000,000 borrowed in February 1958), and $6,000,000 
between July 1959 and December 1960, and carry a commitment 
fee of of 1%. 
The convertible subordinated debentures are subject to a sink- 
ing fund requirement of 5% per annum effective May 31, 1961, 
and 10% per annum effective May 31,1966, with maturity on 
June 1, 1971. The debentures, which are subordinated to the 
bank and insurance company debt, are convertible into common 
stock of the company based on a conversion price per share 
adjustable for, among other things, stock dividends. The effec- 
tive price as of December 31, 1957 was $20.38 and 202,257 shares 
of the authorized unissued stock of the company were reserved 
for such conversion. The related trust indenture also provides 
for retirement by call at a price of 104.25% through May 31, 1958, 
decreasing annually until June 1, 1969, when the call price 
becomes face value. 
The 1956 and 1957 agreements with the bank and the insurance 
companies and the trust agreement governing the debentures 
provide among other things (including restrictions on addi- 
tional borrowings) conditions and requirements which limit 
the amount of earned surplus distributable as cash dividends. 
As a result, earned surplus as of December 31, 1957, which may 
be applied to the payment of cash dividends is limited to 
$2,588,158. 
Note 4. Commitments and Contingent Liabilities. At 
December 31, 1957, the company had on order nine Douglas 
DC-6B airplanes, with delivery scheduled for 1958, and nine 
Lockheed Electra propjet aircraft, with delivery scheduled for 
1959 and early 1960. 
These aircraft together with other major items represent a 
commitment in excess of deposits made at December 31, 1957 
of approximately $26,000,000. (See Note 3 for related financing.) 
As of December 31, 1957, the company was contingently liable 
for claims and lawsuits in which it is or may be a defendant, but 
management and its counsel believe the ultimate liability, if any, 
will not materially affect the financial statements. 
Note 5. Retirement Plans. The company has an insured con- 
tributory retirement plan for all eligible employees, including 
officers, and in addition, the company is negotiating in accord- 
ance with the pilots' 1956 labor agreement a "variable pension 
plan ," to be based on pilots' current services, of the trusteed 
type which is subject to approval by the Treasury Department. 
The cost of these plans charged to operating expense in 1957 
total $598,283 for both current and past services. Management 
contemplates that the remaining past service cost of the insured 
plan will be funded over a period of approximately six years and 
will require annual payments of $106,000. 
Note 6. Options to Purchase Capital Stock. Through 
December 31, 1957, 31,360 shares (including 2,350 shares in the 
year 1957) have been issued under a restricted stock option 
plan for officers and key employees approved by the share- 
holders in 1951. The option prices ranged from $8.19 to $17.47 
a share, representing a total option price and total fair value 
when first exercisable of $384,884, and a total fair value at dates 
when exercised of $596,973. At December 31, 1957 options for 
4,053 shares were outstanding and exercisable within five years 
from the dates granted. The prices average $15.25 a share and 
represented a total option price and a total fair value when first 
exercisable of $61,815. 
Note 7. Accounting Changes. Effective January 1, 1957, a new 
Manual of Accounts was prescribed by the Civil Aeronautics 
Board which effected change in both form and account content. 
The significant change in financial condition was the transfer 
of expendable aircraft parts from property and equipment to 
current assets. As a consequence, current assets at December 
31, 1957, are increased by approximately $580,000. The Statement 
of Income for 1956 was partially recast to provide a relative 
basis for comparison. 
 board of directors 
William S. Bartman 
Bartman & Braun, Attorneys-at-Law 
Los Angeles, Cal ifornia 
Gordon Y. Billard 
J. R. Williston & Co. 
New York, New York 
Hugh W. Darling 
Darling, Shattuck & Edmonds, Attorneys-at-Law 
Los Angeles, California 
Terrell C. Drinkwater 
President 
Western Air Lines, Inc. 
Robert E. Driscoll, Sr. 
Honorary Chairman, Board of Directors 
First National Bank of the Black Hills 
Rapid City, South Dakota 
Wilford H. Gonyea 
Clear Fir Sales Co. 
Springfield, Oregon 
Hector C. Haight 
International Operations 
Hughes Aircraft Co. 
Los Angeles, California 
Goodrich Lowry 
President, Northwest Bancorporation 
Minneapolis, Minnesota 
Dr. Donald H. McLaughlin 
President, Homestake Mining Co. 
San Francisco, California 
L. Welch Pogue 
Pogue & Neal, Attorneys-at-Law 
Washington, D.C. 
Stan ley R. Shatto 
Vice President-Operations 
Western Air Lines, Inc. 
Dudley Swim 
Monterey, California 
Harry J. Volk 
President, Union Bank 
Los Angeles, California 
John M. Wallace 
Chairman, Board of Directors 
Walker Bank & Trust Co. 
Salt Lake City, Utah 
Alexander Ward en 
Publisher, Great Falls Tribune-Leader 
Great Falls, Montana 
Sidney F. Woodbury 
Pine Street Co. 
Portland, Oregon 
executive staff 
Terrell C. Drinkwater 
President 
Stanley R. Shatto 
Vice President-Operations 
Marvin W. Landes 
Vice President-Service 
Paul E. Sullivan 
Vice President-Admin istration and Secretary 
Arthur F. Kelly 
Vice President-Sales 
J. Judson Taylor 
Vice President and Treasurer 
D. P. Renda 
Vice President-Legal 
G. G. Brooder 
Vice President 
Charles J. J. Cox 
Controller and Assistant Treasurer 
Earnest H. Brown 
Assistant Secretary and Director of Personnel 
Thomas M. Murphy 
Assistant to the President 
General Offices 
Western Air Lines Building 
6060 Avion Drive 
Los Angeles International Airport 
Los Angeles 45, California 
Registrars 
Bank of Ameri ca National Trust & 
Savings Assn. 
660 South Spring Street 
Los Angeles 14, California 
The Chase Manhattan Bank 
11 Broad Street 
New York 15, New York 
Stock Transfer A gents 
Security-First National Bank of Los 
Angeles 
561 South Spring Street 
Los Angeles 14, California 
New York Trust Co. 
100 Broadway 
New York 15, New York 
Trustee for Debentures 
Union Bank 
760 South Hill Street 
Los Angeles 14, California 
Stock Listings 
Listed and traded on 
New York Stock Exchange and 
Pacific Coast Stock Exchange 
General Cou nsel 
Darling, Shattuck & Edmonds 
Attorneys-at-Law 
523 West Sixth Street 
Los Angeles 14, California 
A uditors 
Peat, Marwick, Mitchell & Co. 
618 South Spring Street 
Los Angeles 14, California 
A nnual Meeting 
Fourth Thursday in April 
at General Offices