Southwest Airlines Sells 20 Boeing 737s To Raise $815 million

Southwest Airlines Sells 20 Boeing 737s To Raise $815 million
Southwest to sell 20 Boeing 737s Photo: Southwest Airlines

Southwest Airlines has decided to sell 20 Boeing 737s comprising of 10 Boeing 737-800s and 10 Boeing 737 MAX 8 aircraft.


However, these aircraft will not exit the fleet. Southwest will leaseback these 20 planes, the company said in a regulatory filing on 8th May.



This agreement will help the airline to to raise $815 million in cash helping the airline to sustain this corona virus pandemic securing its short-term future.


This will also help Southwest to save cash during this time of crisis, when U.S. airlines are collectively burning more than $10 billion a month.



Southwest Airlines Sells 20 Boeing 737s To Raise $815 million
U.S. carriers are burning more than $10 billion a month Photo: Getty Images


Although, the airline has confirmed about the move, the airline did not disclose about the lessors the airline is working with for this agreement.

The largest Boeing 737 operator neither has announced which specific 737s are part of this cost-saving deal. The duration of the leaseback agreement is not disclosed yet.


Southwest Airlines has grounded 93 of its active 737 Next Generation planes for long-term storage due to decline in demand, as of 31st March.



Passenger traffic in the United States has fallen by 95% since March due to the widespread corona virus pandemic.



Southwest has sent 93 Boeing 737 NGs for long-term storage Photo: Southwest Airlines

Currently, Southwest has 742 Boeing 737s in its fleet. Southwest has 501 737-700s in its fleet with an average age of 16 years, along with 207 737-800s with an average age of 5 years.



All of the Southwest's planes are configured with an all-economy seating. The Boeing 737-700s have 143 seats whereas the 737-800s have 175 seats onboard.


As per the latest filing, out of 742 aircraft 120 of them are on lease. Whereas, 622 of them are owned by Southwest. After this agreement this number will rise to 140 aircraft on lease.


Out of 501 Boeing 737-700s, 110 are on lease, along with seven 737-800s and three 737 MAX 8s. This agreement will take those numbers to 17 leased 737-800s and 13 leased MAX 8s.


The airline has another batch of around 250 Boeing 737 MAX aircraft on order along with over a hundred in option. Some of these will be on lease.


Southwest Airlines Sells 20 Boeing 737s To Raise $815 million
Southwest has around 250 Boeing 737 MAX on order Photo: Reuters

Recently, a Southwest Boeing 737-700 was involved in a rare fatal accident at Austin International Airport killing an adult on the runway.


person who was on the runway 17R of the Austin International Airport was struck and killed by the Southwest 737 which was operating flight WN1391 from Dallas, Texas.


The FAA investigators along with local authorities are performing investigation about this incident at Austin Airport.


Southwest Airlines Sells 20 Boeing 737s To Raise $815 million
Southwest Boeing 737 damaged after it hit the person Photo: @CBSNews

The Boeing 737-700 with registration N401WN, which was involved in the incident was delivered to Southwest Airlines back in March 2001, and is currently 19.1 years old.


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