Southwest Airlines will continue to expand in Denver this year as the carrier adds new aircraft to its fleet.

"We feel we need a lot of nonstop destinations here to really build the market," Gary Kelly, Southwest’s chief executive officer, said today in Denver after speaking to a gathering of senior business executives. "We’ve got a few things up our sleeve that we haven’t yet announced this year."

Southwest has grown quickly since starting service in Denver early last year with 13 daily nonstop flights to three cities. By late June, it will fly 41 daily nonstops to 11 cities. This year, it announced new service to Tampa, Fla., and Oakland, Calif., as well as some additional daily flights to markets it currently serves.

The Dallas-based carrier, which leases five gates at Denver International Airport, has some room to grow. Southwest typically flies 10 daily departures from each gate, giving it room for nine more flights at DIA. It also has expressed interest in leasing some of the eight new gates DIA is building on the C concourse.

Kelly spoke Friday to more than 200 people gathered at a meeting hosted by the Chief Executive Network, a membership group for executives.

He said the carrier will look for new ways to boost revenue and enhance customer service as it broadens its business model to confront new challenges.

"This is a very significant time for us," Kelly said. "What we’re trying to do is ensure that we improve our ability to compete going forward. We have to have an advantage over our competitors."

In addition to high fuel costs and other industry challenges, Southwest faces new competitors mimicking its low-cost business model. Going forward, Southwest’s challenge is to find new ways to set itself apart from the competition while keeping its strengths — low fares, low costs, corporate culture — in tact.

"We can’t just compete on fares," Kelly said. "What’s really different for us going forward is that we’re looking more aggressively to enhance the customer experience."

That could include bolstering its rewards program, introducing new on-board amenities and adding international flights in coming years. Southwest hopes those moves and others — such as expanding its cargo operations — will help boost revenue.

Kelly said Southwest has been profitable every year since 1972 in part because it is "disciplined and prepared for the kinds of risk we face in this industry.

"We are not complacent and we have to adapt and we have to change."

The carrier considers three main factors when considering changes to its business: How it will effect its employees, customers and the bottom line.

"These filters," Kelly said, "help us evaluate just about any situation we’re confronted with."