A push to capture premium travelers
Southwest Airlines is weighing a major shift in its customer experience strategy: building a network of airport lounges. CEO Bob Jordan said in an interview that the company is now “actively pursuing” the idea as competition intensifies for high-spending travelers who expect more comfort and exclusive services while flying.
Jordan noted that dedicated lounges could support a redesigned premium credit card with built-in lounge access. He emphasized that customer demand for these spaces is strong and that Southwest aims to develop a system that aligns with its nationwide route network.
Early steps and partnership discussions
The airline has begun exploring lease options and potential locations, working closely with its credit card partner, Chase. One early milestone came in October, when Southwest secured approval to open a lounge at Honolulu’s Daniel K. Inouye International Airport — the first concrete sign of its broader ambitions.
Jordan did not offer a timeline but said the intention is to build a cohesive lounge footprint rather than isolated outposts, ensuring travelers across its major markets could access the service.
Industrywide race for exclusivity
Airlines and financial institutions alike have invested heavily in lounge experiences as a way to attract and retain premium customers. Delta, JetBlue, American Express, Capital One, and Chase have all expanded their lounge offerings in recent years, helping reshape expectations around airport amenities.
A new J.D. Power survey underscored the trend: 82% of participants said lounge availability influenced which airline they chose. For Southwest — historically known for open seating, no-change-fee policies, and a more casual brand — competing in this space marks a significant strategic evolution.
Broader changes to Southwest’s model
The carrier has made sweeping adjustments to its business this year, including ending open seating, introducing assigned seats, and adding charges for checked bags — a shift driven partially by pressure from activist investor Elliott Investment Management.
To enhance loyalty, Southwest recently began offering free onboard Wi-Fi for program members. Jordan added that the company is also evaluating new internet providers, including Starlink, a service United Airlines has already adopted.
