More Cargo Capacity: Alaska Airlines To Retire Boeing 737-700 Fleet By Next Year

Alaska Airlines is preparing to phase out its Boeing 737-700 passenger fleet by 2027 to make room for larger aircraft that can carry more passengers and cargo. The transition matters in remote Arctic areas, where air travel is essential to connect isolated communities and transport goods. Replacing the 737-700 with the Boeing 737-800 will give the airline additional capacity on existing services, including routes serving communities that rely on air transportation year-round.

The change comes as Alaska Airlines continues to adapt and modernize its fleet to meet its network's operational demands. While the 737-700 has served routes where a smaller aircraft was sufficient, its successor offers more seats and additional lower-deck cargo space. Retiring an aging fleet also gives the airline an opportunity to increase the freight and passenger traffic it can accommodate on flights across Alaska.

Alaska Airlines Prepares To Replace Its Boeing 737-700s

Alaska Airlines will retire its passenger Boeing 737-700 fleet in 2027, replacing the smaller aircraft with larger Boeing 737-800s to increase passenger and cargo capacity across its network. The change will be especially important in Southeast Alaska, where the carrier operates multi-stop services connecting communities that depend heavily on air transportation. According to a report published by the Juneau Empire and Homer News on October 10, the fleet transition is expected to provide additional room for passengers, luggage, and freight.

The move reflects the practical demands of operating in Alaska, where air services connect communities separated by mountains, waterways, lack of roads, and vast stretches of remote terrain. Unlike major metropolitan markets, some regional routes offer few alternatives for transporting people and essential goods. By deploying larger aircraft on these services, Alaska Airlines aims to accommodate more travelers while providing additional space for freight, including seafood shipments that are important to the state's economy.

Boeing 737-800 Offers More Seats And Cargo Space

The Boeing 737-700 and 737-800 belong to the same aircraft family, the Boeing 737 Next-Generation (NG), but their size differences make the latter better suited to routes that need additional capacity. Alaska Airlines' 737-700s are configured for 124 passengers, while the 737-800s used for the transition accommodate 161 passengers. That's 37 additional seats per flight, plus about 50% more space in the aircraft's lower-deck cargo hold, according to local news outlets.

The larger aircraft is approximately 20 feet longer than the 737-700. This additional capacity could make a meaningful difference on services carrying a combination of local residents, visitors, baggage, and commercial shipments. For seafood producers and other businesses in Alaska, additional cargo space can help move products to market while making better use of existing flight schedules.

Boeing 737-700 vs. Boeing 737-800

Sources: Boeing 737 Next Generation specifications

The switch also shows why aircraft selection depends on more than passenger numbers. A larger aircraft can carry more freight without requiring the airline to add another departure, although actual cargo loads depend on passenger baggage, aircraft weight limits, route conditions, and operational requirements. The additional space should provide greater flexibility.

Planespotters.net also notes that the Alaska 737–700 airplanes average 26.3 years old, while the -800 variant is slightly newer, with an average age of 18.5 years. The newer planes will also have faster on-board internet connections.

Why Alaska's Famous Milk Run Matters

One of the services expected to benefit from the transition is Alaska Airlines' famous milk run, a multi-stop route connecting Seattle-Tacoma International Airport (SEA) with communities in Southeast Alaska, including Ketchikan, Wrangell, Petersburg, and Juneau, before continuing to Anchorage, as it was described in Joe Junzler’s trip report in 2024. The service plays an important role in connecting smaller communities with larger transportation and economic centers. For residents and businesses along the route, additional passenger seats and cargo capacity could make an established service more useful without fundamentally changing its role.

Alaska's geography makes aviation particularly important. Many communities have limited road connections or no direct road access to the wider state highway network, making aircraft essential for travel, supplies, and commercial transportation. Seasonal local industries also drive demand for reliable freight capacity, especially when perishable products must reach customers beyond the state while still fresh.

The 737-700's departure from passenger operations will mark a change for a fleet that has served Alaska Airlines on routes where a smaller jet made sense. The 737-800 offers a straightforward way to increase capacity while retaining the familiar Boeing narrowbody platform. For Southeast Alaska, the most important outcome may be the extra room available for both travelers and the goods that keep remote communities connected to the wider economy.