Southwest Airlines has converted orders for 31 Boeing 737-700s scheduled for delivery in 2016 to larger 737-800s, chief executive Gary Kelly reveals.
With the conversion, Kelly says the carrier will end 2016 with a fleet that includes 135 -800s, which Southwest typically outfits with 175 seats.
He made his comments during the US low-cost carrier’s annual meeting of shareholders on 13 May.
Taking into account retirements, Southwest expects to end 2016 with about 715 aircraft, including the 31 -800s and four used -700s scheduled for delivery next year.
Southwest configures its 737-700s with 143 seats.
The order conversion will further push up Southwest’s capacity, with the company now estimating its available seat miles (ASMs) will increase 6% to 7% in 2016, year-over-year.
The company says about 5% of that growth will result from the full-year effect of this year’s fleet expansion.
Southwest’s fleet currently stands at about 665 aircraft, according to the Ascend Fleets database.
Kelly says the carrier will end 2015 with about 700 aircraft following deliveries of 19 new 737-800s and 19 pre-owned 737-700s.
ASM’s will be up about 7% at the end of this year, he says.
Southwest estimates its aircraft expenditures will be about $1.1 billion in 2015 and between $1.3 billion and $1.4 billion in 2016.
The company still has orders for 15 737-700s in 2017 and 10 in 2018, Southwest says.
Source: FlightGlobal.com
