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Southwest Airlines Considers Selling Incoming Boeing 737 MAX Jets

Southwest Airlines Considers Selling Incoming Boeing 737 MAX Jets Amid Market Uncertainty
Southwest Airlines is exploring the possibility of selling some of its incoming Boeing 737 MAX aircraft, leveraging favorable pricing conditions within its existing order book relative to current market values. This consideration forms part of a revised fleet capital expenditures strategy outlined during the airline’s Investor Day in September 2024. Executives emphasized the opportunity to capitalize on the airline’s substantial backlog of nearly 700 aircraft to extract value amid a volatile aviation market.
Strategic Rationale and Market Context
At the Bernstein Strategic Decisions Conference, Southwest President and CEO Bob Jordan described the airline’s order book as “very, very attractive,” noting that planned capacity growth of only 1% to 2% over the coming years may reduce the need to take delivery of all aircraft on order. Jordan stated, “If we don't take all those aircraft for our own uses, then we will monetize those into the market. Our pricing compared to what the market pricing in is very strong. Whether we take the aircraft or decide to sell them, we're going to monetize every dime of value that we have in the Boeing order book.”
This potential divestment comes amid ongoing market volatility characterized by supply chain disruptions and fluctuating fuel prices, which have contributed to inconsistent demand for new aircraft and raised concerns about market liquidity. Some investors have expressed reservations about the financial implications of Southwest’s approach, interpreting the possible sale of aircraft as a signal of underlying financial pressures. Meanwhile, competitors may view the move as an opportunity to acquire additional jets at attractive prices, while others might perceive it as indicative of challenges within Southwest’s operations.
Boeing’s Production Challenges and Delivery Outlook
Boeing continues to navigate recovery efforts following recent setbacks, including the January 2024 Alaska Airlines 737 MAX 9 midair door plug incident and a late-2024 strike by the International Association of Machinists and Aerospace Workers at its Renton production facilities. These events have contributed to delays in aircraft deliveries. According to Southwest’s 2024 annual report, as of January 30, 2025, the airline held 496 firm 737 MAX orders, including 63 aircraft contractually committed for 2024 but not yet delivered. For 2025, Southwest anticipates receiving 38 Boeing 737 MAX 8s, significantly fewer than the 136 originally scheduled, although Jordan suggested that actual deliveries could exceed 50 due to “improvements at Boeing.”
Jordan commended Boeing’s progress in stabilizing production and enhancing quality despite ongoing delivery delays, stating, “What we see is much better quality, much better stability of the deliveries.”
Market Implications and Industry Response
Wall Street sentiment toward Boeing has improved as 737 MAX production gradually ramps up. However, Southwest’s potential decision to sell new jets may influence perceptions of both companies. If interpreted as a response to persistent issues with the 737 MAX or as an indicator of weak demand, the move could prompt renewed scrutiny of the aircraft’s market position.
This strategy aligns with Southwest’s broader “Southwest. Even Better” initiative, which seeks to optimize fleet value and navigate a challenging industry environment. As the airline evaluates its options, industry observers will closely monitor reactions from the market, competitors, and investors.

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