Allegiant no longer sees the Boeing 737 MAX 7 as the best fit for its fleet. The smaller jet made up most of the airline’s original Boeing order, but President and CFO Robert Neal told analysts on the third-quarter earnings call that premium seating has changed the economics, and the larger MAX 8 now comes out ahead.
Neal said the carrier liked the MAX 7 when it placed the order, at a time when it was weighing both the MAX 7 and the MAX 8 in very high-density layouts. Allegiant Extra, and the Allegiant First product still to come, changed that math. “The seat cost just sort of loses pace with the MAX 8,” he said, adding: “we prefer the cost economics of the MAX 8 at this point.”
How the Boeing order has shifted
Allegiant signed its first direct Boeing order in December 2021, a break from its long habit of buying used aircraft. In January 2022 it announced 50 jets: 30 MAX 7s and 20 high-density MAX 8-200s, with options on 50 more. At the time it flew 108 Airbus A319s and A320s, and Boeing said the new aircraft would burn about 20% less fuel than those older Airbus jets.
The move toward the bigger jet began well before this week’s comments. In September 2023 an amended agreement kept the 50 firm aircraft, added MAX 8-200s, cut the number of MAX 7s and widened the option pool to 80 aircraft.
Last month Allegiant exercised six MAX 8 options for delivery in 2028. Its firm Boeing order now stands at 56 aircraft, of which 22 had been delivered by 23 October, and 74 options remain.
Why premium seating changes the maths
Seat cost is the airline’s cost of flying each seat, and it falls as more seats share the same aircraft. The MAX 7 is the shorter jet, so a cabin that gives up space to extra-legroom rows or a first-class section spreads its costs over fewer seats. Neal’s remarks point to that effect: once premium seats take up room, the MAX 8’s extra length wins out on cost.
The premium products are still being rolled out. Allegiant is also retiring older Airbus jets early to line up with MAX deliveries: 17 airframes had been retired by June 30, 2026, with the rest of the planned retirements scheduled between August 2026 and January 2027.
Where the MAX 7 stands
The MAX 7 spent years in certification limbo. The FAA approved it on 3 August 2026, after requiring changes to the anti-ice system, the flight-control software and cockpit alerts. Southwest Airlines launched the model more than 13 years ago and is its launch customer.
Allegiant has not said it is dropping the MAX 7, and the comments do not change the 56-aircraft firm order. They do show which direction the airline is leaning for future deliveries and for the options it still holds.
FAQ
Is Allegiant cancelling its MAX 7 order?
No cancellation was announced. Neal said the airline prefers the MAX 8’s cost economics, and the order has been tilting toward the MAX 8 since the September 2023 amendment.
Why does premium seating affect which jet is cheaper per seat?
Premium seats take more floor space than standard ones, so fewer seats fit in a given cabin. A longer aircraft carries more of them, which spreads the cost of each flight across more seats.
