In 2012, Southwest Airlines made a decision to increase the seating capacity of its Boeing 737-700 aircraft by adding an extra row. The airline introduced thinner and lighter seats, reducing comfort for passengers but allowing it to raise the number of seats from 137 to 143 per plane. This move was part of a broader effort to boost revenue and efficiency without purchasing additional jets, with Southwest investing $60 million in the retrofit and expecting about $10 million in additional annual ticket revenue.
At that time, Southwest’s approach focused on spreading trip costs across more passengers and maintaining its reputation as a low-fare carrier. The new seats were also lighter, helping reduce fuel consumption over time. The retrofit was implemented across the fleet within approximately ten months during scheduled maintenance, minimizing aircraft downtime and costs by reusing existing seat frames.
Between 2012 and the onset of the COVID-19 pandemic, Southwest expanded steadily in the United States after integrating AirTran into its network. The airline maintained strong cash flow, ordered new aircraft, and invested in operational improvements while offering features like two free checked bags and no change fees.
However, following the pandemic, Southwest faced challenges including increased costs and operational disruptions. A major breakdown in December 2022 led to nearly 17,000 flight cancellations and significant financial penalties. Activist investor Elliott Investment Management acquired an approximately 11% stake in the company and advocated for changes to improve performance. As a result of these pressures, Southwest agreed to board changes and accelerated efforts to enhance revenue through premium seating options.
Now, fourteen years after increasing capacity on its 737-700s, Southwest has reversed course by removing one row of seats from these aircraft. This change returns capacity back to 137 seats per jet so that space can be used for higher-yield extra-legroom rows at the front and around exits as assigned seating is introduced.
The modification program began in May 2025 as part of a larger cabin refresh effort. By removing six seats per plane—across about 300 aircraft—the airline aims to offer premium seating at a surcharge once assigned seating is fully rolled out. This strategy seeks to improve unit revenue by catering more directly to customer preferences for comfort on longer domestic flights.
Southwest completed this work ahead of schedule during routine maintenance periods without disrupting its network operations.
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“Southwest’s decision to remove the extra row on its 737-700 jets is a pure reversal of its 2012 cabin densification efforts,” according to Jonathan E. Hendry.
This move reflects changing industry dynamics where airlines are increasingly monetizing premium offerings rather than relying solely on maximizing passenger numbers per flight.
