Southwest Is Getting Lounges: CEO Outlines Major Shift Toward Premium Travel

Southwest Airlines’ CEO, Bob Jordan, confirmed that the Dallas-based carrier is “actively pursuing” developing a network of airport lounges. This move is one of the most visible shifts in Southwest’s business model as the traditionally budget-focused airline begins catering to premium travelers. The announcement comes after Southwest secured approval for its first lounge at Honolulu Daniel K. Inouye International Airport, spanning 12,000 square feet across two floors in Terminal 2. Jordan told CNBC that lounges would be “a huge, next benefit” for Southwest customers, highlighting the potential to offer premium credit cards with lounge access, a model that has proven successful for competitors and their banking partners.

Southwest Airlines’ Premium Evolution Takes Flight

Southwest’s lounge ambitions mark a departure from the carrier’s traditional positioning as America’s largest low-cost airline. The strategy shift comes amid broader changes at Southwest, including the end of its long-standing “bags fly free” policy and plans to implement assigned seating beginning in January 2026.

These moves appear designed to attract higher-spending travelers. The airline has already begun upgrading its customer experience by improving in-flight connectivity, offering free Wi-Fi to Rapid Rewards members, and exploring partnerships with providers such as SpaceX Starlink.

Honolulu Lounge Marks First Step In Broader Network

Construction on Southwest’s inaugural lounge in Honolulu is expected to begin soon, though the airline has not announced an official opening date. The 12,000-square-foot facility will occupy two floors in Terminal 2, where all Southwest flights operate. While keeping specific timelines close to the vest, Jordan made it clear this represents just the beginning: “We’re gonna make sure that we have a network of lounges that meets the needs of the network that we have.”

According to CNBC, Southwest’s shift toward premium offerings comes with significant financial expectations. The airline has forecast that assigned seating and extra legroom seats alone could drive $1 billion in pretax earnings next year and $1.5 billion in pretax earnings in 2027.

Despite a challenging 2025 that saw profits fall 42% in the first nine months compared to the same period in 2024, Southwest’s stock has outperformed other U.S. airlines, rising nearly 24% this year—more than industry profit leaders Delta Air Lines and United Airlines.

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