Southwest Airlines Delays 737-7 Deployment to 2025 Due to Ongoing Certification and Delivery Challenges

Southwest Airlines, headquartered in Dallas Love Field, has announced that it does not foresee the Boeing 737-7 aircraft entering commercial service in the year 2024. This decision is primarily driven by ongoing uncertainties related to the aircraft’s type certification and delivery schedules.

During a fourth-quarter investor’s call in 2023, Tammy Romo, Southwest’s Executive Vice President & Chief Financial Officer, revealed that the airline’s 2024 capacity plans do not include any 737-7 operations. Romo emphasized that if the certification process for the aircraft continues to experience delays, Southwest’s 2024 capacity plans will remain unaffected.

Southwest’s contractual order book consists of 307 firm orders for the 737-7, with delivery windows spanning from 2024 to 2031. However, the airline has cautioned that it cannot provide absolute assurances regarding the accuracy of current estimates and timelines. In addition to the 737-7 orders, Southwest holds 188 firm orders for the 737-8 variant and 199 options for either aircraft type, resulting in a total order book of 694 aircraft.

Among all airlines, Southwest Airlines stands out as the largest future operator of the 737-7. The airline plans to utilize this aircraft to replace its existing fleet of 737-700s. While only four other airlines have confirmed commitments for a combined total of 32 737-7 units, an additional 30 units have been ordered by undisclosed customers. Southwest’s 737-800s will be replaced by the larger 737-8 variant.

Southwest currently operates a fleet of 818 aircraft, comprising 388 Boeing 737-700s, 223 737-8s, and 207 737-800s.

In its plans for 2024, Southwest aims to take delivery of approximately 79 MAX aircraft, down from a previous estimate of 85. However, these numbers are subject to change due to ongoing supply chain challenges faced by Boeing and uncertainties surrounding the 737-7’s certification process. Additionally, the airline intends to retire around 49 aircraft, including 45 737-700s and four 737-800s, resulting in a year-end fleet size of 847 jets.