Southwest Airlines to Retire Boeing 737 NG Fleet by 2031

Southwest Airlines has announced plans to significantly reduce its fleet of Boeing 737 Next Generation (NG) aircraft, specifically the 737-700 and 737-800 models, aiming for complete retirement by 2031. Currently, the airline operates a total of 810 Boeing 737s, making it the largest operator of this aircraft worldwide. This strategic move comes as the airline seeks to modernize its fleet and enhance operational efficiency.

One of the primary reasons for this reduction is the higher operating costs associated with the older 737 NG models. Since their introduction, newer aircraft, particularly the Boeing 737 MAX series, have been developed to offer superior fuel efficiency and lower maintenance costs. The 737 MAX, equipped with advanced CFM LEAP-1B engines and improved aerodynamics, provides approximately 14-20% greater fuel efficiency than earlier models. This fuel efficiency not only reduces operating costs but also aligns with Southwest Airlines’ sustainability goals, contributing to the airline’s commitment to lower emissions in the aviation industry.

Addressing Aging Aircraft Challenges

The average age of Southwest’s 737 NG fleet is around 19 years for the 737-700 and 11 years for the 737-800. As these aircraft age, they require more frequent maintenance, which can lead to increased operational downtime and repair costs. Recent inspections mandated by the Federal Aviation Administration (FAA) due to structural concerns, such as fuselage cracks, highlight the challenges associated with maintaining older airplanes. To combat these issues, Southwest plans to retire up to 55 Boeing 737 NGs each year until they are entirely phased out by 2031.

The growing demand for narrowbody aircraft is another factor influencing this decision. With recent challenges affecting Pratt & Whitney’s GTF engines, airlines are increasingly seeking to add second-hand aircraft to their fleets. This trend positions Southwest to potentially achieve higher resale values for its Boeing 737 NGs, making the sale of these older models a financially viable option. In September 2024, Southwest Airlines CEO Bob Jordan emphasized the airline’s strategy to capitalize on this demand, stating, “We have a unique opportunity to capture value and earnings on excess aircraft we do not need with our moderate growth plan.”

Commitment to the Boeing 737 MAX

Southwest Airlines has deep roots with the Boeing 737, having taken delivery of its first model, a 737-200, in 1971. Since then, the airline’s fleet has expanded to include 334 Boeing 737-700s, 203 Boeing 737-800s, and 273 Boeing 737 MAX 8s. Furthermore, the airline has outstanding orders for an additional 196 737 MAX 8s and 314 737 MAX 7s, which will enter service in 2026. This commitment to a single aircraft type simplifies operations and enhances overall efficiency.

The Boeing 737 MAX series, which entered commercial service in May 2017, was designed to improve fuel efficiency and reduce operating costs, positioning it as a competitor to the Airbus A320neo family. Despite facing significant setbacks, including two fatal crashes that led to a global grounding of the aircraft for nearly two years, Boeing has resumed deliveries. Southwest Airlines will be the launch customer for the 737 MAX 7, further solidifying its partnership with Boeing.

The challenges faced by the Boeing 737 MAX program have undoubtedly impacted the aviation sector. The grounding not only affected financial performance but also raised questions about safety and regulatory practices. Nonetheless, the demand for short-haul narrowbody aircraft continues to grow, with airlines worldwide eager to integrate more modern and efficient models into their fleets.

About Southwest Airlines: Founded in 1967 by Herb Kelleher and Rollin King, Southwest Airlines began as Air Southwest, operating intrastate flights within Texas. The airline’s innovative approach to low-cost travel, characterized by point-to-point routes and quick turnaround times, revolutionized the aviation industry. Today, Southwest Airlines stands as the fourth-largest airline in the United States by passenger numbers, with over ten operating bases nationwide, including major hubs in Las Vegas, Los Angeles, and Atlanta.

As Southwest Airlines moves forward with its fleet modernization strategy, the focus remains on enhancing operational efficiency and maintaining its position as a leader in the low-cost airline market. The transition from older aircraft to the more efficient Boeing 737 MAX series is expected to contribute positively to both the airline’s financial performance and its sustainability efforts in the years to come.