Southwest Airlines to debut first-ever lounge network next year

Southwest Airlines Co. plans to roll out its first-ever lounge network next year, the latest phase of the carrier’s corporate makeover to boost profits and compete with major rivals.

Construction has started on the first four lounges that are slated to open for travelers in late 2027, according to a Wednesday statement, at the Austin-Bergstrom International Airport, Baltimore/Washington International Thurgood Marshall Airport, Daniel K. Inouye (Honolulu) International Airport and Nashville International Airport. 

Southwest is planning at least seven additional lounges. 

The push into lounges marks a significant shift for Southwest, which has long avoided the premium perks embraced by larger competitors such as Delta Air Lines Inc. and United Airlines Holdings Inc. But Southwest is leaning into higher-margin offerings as part of a sweeping strategy to improve profitability.

Since responding to activist investor Elliott Investment Management by reshaping the airline’s financial strategy in 2024, the carrier has been moving away from its historic one-size-fits-all business model, revealing plans to ditch its open seating policy, while also announcing a new premium class section and red-eye flights.

Travelers can get access to lounges with a new rewards credit card issued by JPMorgan Chase & Co., according to the statement. 

For years, airlines have encouraged consumers to pursue lounge access in part because the economics proved lucrative. Delta said its partnership with American Express Co. generated more than $8 billion in revenue in 2025, with lounge access serving as one of the primary incentives pushing customers toward high-fee cards.

Across the industry, airlines increasingly rely on loyalty ecosystems to generate stable, high-margin revenue streams that can be more predictable than selling tickets. United reported that its premium and loyalty revenues were up 16% and 11% in the second quarter compared to the same time last year, helping offset a spike in fuel costs caused by the conflict in Iran.

The push into premium travel has coincided with a widening divide on Wall Street. Delta and United Airlines Holdings Inc. have delivered industry-leading profits and strong stock performances, while those that have failed to get in on the trend have floundered.