Southwest Airlines Co. (NYSE: LUV) is expanding the number of flights it makes to Latin America and changing its order with Boeing Co. (NYSE: BA) for 31 of the company’s 737-700 jets to the larger 737-800. All 31 planes are scheduled for delivery to Southwest in 2016.

The 737-800 includes 32 more seats than the 737-700 and carries a list price of $93.3 million, compared with a list price of $78.3 million for the smaller plane. Since placing its first order for a 737-200 in 1971, Southwest has ordered 941 new 737s from Boeing and taken delivery of 675.

Southwest claims to have the largest fleet of Boeing airplanes in the world, with 668 currently in active service according to Planespotters.net. Of those, 440 are 737-700s and 95 are 737-800s. By the end of 2016, Southwest expects its fleet to number about 715 aircraft, all some version of the 737.

For 2015, Southwest has 19 firm orders for the 737-800, and intends to take delivery of 19 pre-owned 737-700s. For 2016, the airline currently intends to take delivery of four pre-owned 737-700 aircraft.

The airline also has 25 more 737-700s on order for delivery in 2017 and 2018. Those orders also may be changed to 737-800s, depending on the airline’s needs, according to CEO Gary Kelly. The last 737-700 that Southwest acquired new was delivered in December 2011. According to Bloomberg News, the airline has acquired at least 45 used 737-700s since then.

On the same day the airline also announced that it was increasing its dividend by 25%, from $0.06 per share per quarter to $0.075 per share. The company said that the new dividend returns about $200 million annually to shareholders. Southwest also authorized a new $1.5 billion share buyback program and plans an accelerated repurchase program of $300 million.

ALSO READ: Companies with the Best (and Worst) Reputations

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.