Southwest Airlines Announces Sale, Leaseback Agreement With BBAM For 36 Boeing 737-800 Aircraft

(RTTNews) - Southwest Airlines Co. (LUV) announced on Tuesday a sale and leaseback agreement with Babcock & Brown Aircraft Management (BBAM) for 36 Boeing 737-800 aircraft. These aircraft will be owned by BBAM and leased back to Southwest through its Incline Aviation III investment fund.

The company stated that it had completed the sale-leaseback of 35 aircraft in late December 2024, generating gross proceeds of $871 million. Southwest expects to recognize realized gains of $92 million in the fourth quarter of 2024 from this sale-leaseback deal.

The lease period for these aircraft will range from 26 to 37 months, during which the company will pay rental fees for the aircraft.

The company stated that this transaction is part of Southwest's 'Southwest. Even Better.' transformation plan, which was unveiled in September.