Southwest Airlines is exploring the potential launch of a network of airport lounges, according to CEO Bob Jordan in a recent CNBC interview. The airline is currently engaged in discussions concerning airport leases and lounge development in collaboration with its credit card partner, Chase. This initiative comes amidst increasing competition among airlines for attracting premium travelers.
Jordan emphasized the importance of lounges in enhancing the customer experience, suggesting that they could be a pivotal offering. “Lounges would be a huge, next benefit for our customers,” he stated, highlighting the potential for a lounge network that pairs with premium credit card offerings providing access to these exclusive spaces.
The airline recently gained approval to establish a lounge at Honolulu’s Daniel K. Inouye International Airport, marking its first step toward this ambitious expansion. Although Jordan did not specify a timeline for the development of additional lounges, he noted that customer demand is a significant driving force behind the initiative. “It’s clear our customers want lounges, and we’re pursuing the customer,” he said.
The trend of building lounges has seen participation from both large carriers like Delta Air Lines and smaller ones such as JetBlue Airways, along with major credit card companies like American Express, Capital One, and Chase. According to a recent J.D. Power report, a significant 82% of surveyed respondents indicated that lounge access influences their choice of airline, underscoring the competitive advantage such facilities can provide.
In its efforts to enhance customer offerings, Southwest has been undergoing substantial modifications to its business model over the past year. Changes have included shifting from open seating to assigned seats and introducing fees for checked baggage in a bid to boost revenue—a strategy influenced by pressure from activist Elliott Investment Management.
Moreover, this fall the airline rolled out complimentary Wi-Fi access to members of its loyalty program. Jordan also indicated that the company is open to exploring new in-flight internet solutions, including SpaceX’s Starlink, a service that United Airlines has recently adopted, illustrating Southwest’s willingness to innovate amidst evolving industry standards.
