China Southern Airlines’ Boeing 737-700 era has officially come to an end.
In August, the airline retired its last remaining Boeing 737-700, registered as B-5285.
With this final departure, China Southern has completely phased out its 737-700 fleet after 22 years of operations.
From a fleet management perspective, this is more than just a routine retirement. It represents another step in China Southern’s ongoing efforts to reduce its reliance on higher-cost aircraft types and optimize its fleet structure.
Between 2004 and 2026, China Southern operated a total of 37 Boeing 737-700s. These aircraft were primarily deployed across several of its regional branches, including those in Xinjiang, Henan, Hubei, and Guangxi. Their typical cabin configuration featured approximately 128 seats.
The aircraft’s disadvantages were straightforward: a shorter fuselage, fewer seats, and a higher cost per seat.
Compared with some of China Southern’s Boeing 737-800s configured with 180 all-economy-class seats, the 737-700 offered several dozen fewer seats.
It was also less fuel-efficient than the newer Boeing 737 MAX.
For airlines, operating a flight with fewer seats does not mean that operating costs decrease proportionally. Expenses such as fuel, crew, landing fees, maintenance, spare parts, and aircraft parking do not fall in proportion to the reduction in seating capacity.
As a result, the cost per available seat kilometer (CASK) tends to be higher.
China Southern’s fleet restructuring strategy in recent years has become increasingly clear:
Phasing out aircraft types with relatively high operating costs and weaker profitability.
Following the retirement of the 737-700, China Southern’s narrowbody fleet is becoming increasingly concentrated around the Boeing 737-800, 737 MAX 8, and Airbus A320neo/A321neo families.
