Southwest Airlines Says Expects A Total Of 67 Boeing 737-8 And 737-7 Aircraft Deliveries And Plan To Retire ~60 Aircraft In 2026
Key takeaways
- Southwest is tightening its growth plan, delivering 67 new 737s while retiring 60 aircraft, and investing $2.5‑$2.75 billion in net capital spending for 2026.
- 20 Boeing 737‑8 deliveries
- 20 aircraft retirements
- 803 total aircraft
What happened
Southwest Airlines reported that in the third quarter of 2026 it delivered 20 Boeing 737‑8 aircraft, retired 20 aircraft (including the sale of three Boeing 737‑800s and the retirement of 17 Boeing 737‑700s), and ended the quarter with 803 aircraft. The airline posted a $214 million gain on the sale of retired aircraft and engine sales, and $118 million from sale‑leaseback transactions. Gross capital expenditures for the quarter were $1.0 billion, mainly on aircraft, technology, facilities,…
Why it matters
The company’s delivery and retirement plans shape its fleet size and operating costs. A 1.2% capacity growth is modest compared to the prior 1.5% guidance, indicating a more cautious expansion. The $1.0 billion quarterly capex and $2.5‑$2.75 billion annual net spend signal continued investment in newer,…
Short-term and longer-term
Short-term. Over the next few days, Southwest’s stock may react to the modest 1.2% capacity growth target versus the earlier 1.5% guidance, potentially tightening the upside.
Longer-term. For the coming months, Southwest’s strategy to deliver 67 new 737s while retiring 60 aircraft signals a shift toward a leaner, more fuel‑efficient fleet.