Southwest Airlines has made a significant move towards expanding and modernizing its fleet by placing an order for an additional 108 Boeing 737 Max 7s, bringing its total orders for this model to 302.

This deal, announced by the Arlington, Virginia-based Boeing on October 26, 2023, underscores Southwest’s commitment to fleet modernization and growth strategy through the next decade.

The announcement also included a restructuring of Southwest’s order book, now encompassing contracts and options for the acquisition of 780 Boeing 737 Max jets between 2023 and 2031.

This figure surpasses the airline’s July estimate of 564 by 216 aircraft and includes an increase of 110 Max 7s and a slight uptick from 270 to 271 Max 8s. Additionally, options for either Max 7s or Max 8s have nearly doubled from 102 to 207.

During the company’s quarterly earnings call, Southwest Airlines CEO Bob Jordan highlighted the strategic nature of the deal: “The new aircraft market is tight and we wanted to ensure that we have access to aircraft into the future and we have done that through 2031,” Jordan stated, emphasizing the importance of locking in attractive pricing and maintaining flexibility in an industry rife with variability.

As part of the updated fleet plan, Southwest anticipates a steady delivery rate of 80 to 90 aircraft annually through 2031, with the flexibility to adjust these numbers in response to demand fluctuations.

Boeing’s commercial aircraft chief executive Stan Deal commended the decision, saying, “Southwest is counting on the exceptional efficiency and reliability of the 737 Max family.”

He also recognized the pivotal role of the 737-7 in Southwest’s fleet modernization and expressed honor in the continued trust the airline places in Boeing to deliver its future fleet.

In the immediate term, Southwest expects to receive 85 Max 8s this year, up from the previously estimated 70.

The arrival of these additional aircraft has prompted an acceleration in the retirement of older 737-700s, with plans to divest 41 instead of the previously planned 26.

Despite these changes, Southwest maintains its aim to conclude 2023 with a total of 814 737s in its fleet.

Southwest’s alliance with Boeing has deep roots, with the airline historically operating an all-Boeing 737 fleet for nearly five decades, and it was also the launch customer for the Max 8.

The 737 Max family, particularly noted for its fuel efficiency and environmental benefits, aligns with Southwest’s sustainability goals and its single-fleet cost-efficiency strategy.

Amidst the challenges brought on by the COVID-19 pandemic and the recovery of the aviation industry, these new orders reflect Southwest Airlines’ proactive approach to fleet management and growth.

With this agreement, the airline further solidifies its reputation as the world’s largest operator of an all-Boeing fleet and prepares itself for future opportunities in the air travel market.

Relevant articles:
– Southwest orders 108 Boeing 737s and takes more order options, flightglobal.com
– Southwest Airlines Adds 100 Firm Orders For The Boeing 737 MAX 7, Investor Relations | Southwest Airlines
– Southwest Airlines orders 108 additional Boeing 737 MAX jets, PR Newswire
– Southwest Airlines agrees to buy 100 of Boeing’s smallest 737 Max model, CNBC