In yet another break from Southwest’s former no-frills, low-cost business model, the airline’s CEO said Wednesday that a network of airport lounges is in the works.
The Dallas-based carrier is “actively pursuing” the idea of a lounge network and discussing potential airport leases, Bob Jordan told CNBC in an interview. Southwest’s credit card partner, Chase, is also involved in the talks, he added.
“I think lounges would be a huge next benefit for our customers,” Jordan told the business news channel. “And you [would] have a lounge network that allows you to offer that premium credit card that provides lounge access.”
The CEO did not provide a timeline for the potential network’s debut.
Southwest in October won approval to develop and open its first lounge at Daniel K. Inouye International Airport in Honolulu. Company officials have not announced or confirmed the project, and it is not clear when it will open to eligible customers.
Southwest does not currently operate lounges like its major U.S. competitors, reflecting its longstanding low-cost model. Since 2024, however, the airline has moved away from that strategy in an effort to open up new revenue streams and capture a larger share of luxury travelers, who are increasingly driving growth for carriers across the world.
Earlier this year, Southwest ended its famous “two bags fly free” policy and started charging for checked bags. It will transition to assigned seating on its flights in January 2026.
In a separate interview with CNBC’s “Squawk on the Street,” Jordan said Southwest is retaining its advantages – including strong brand loyalty, low operating costs, and standout hospitality – while undergoing what host Carl Quintanilla termed “premiumization.”
https://airlinegeeks.com/author/zachvasile/
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