Southwest Airlines has finalised a sale-and-leaseback agreement with BBAM for 36 Boeing 737-800 aircraft. The aircraft will now be owned and leased back to Southwest by Incline Aviation III, BBAM's third flagship aviation investment fund.
This landmark transaction forms part of Southwest's “Southwest. Even Better.” plan, unveiled during Investor Day in September. By monetising surplus value from a segment of its all-Boeing 737 fleet, the airline aims to generate significant cash flow to modernise its fleet and offset capital expenditures, aligning with its broader capital allocation strategy.
BBAM, one of the world's largest aircraft lessors, highlighted the deal as a testament to its ability to deliver tailored fleet financing solutions with certainty. The company serves over 100 airline customers in more than 50 countries and focuses exclusively on investment returns for third-party capital.
