Southwest is continuing planning for a network of airport lounges that will likely be co-branded with credit card partner Chase.
On an earnings call Thursday, Southwest CEO Bob Jordan said lounges are a logical next step as the carrier’s existing leisure and business products mature and more customers acquire Rapid Rewards cards. The cards are issued by Chase.
“We fully intend to continue to expand the co-brand offering and opportunities for our customers,” he said. “I know I’ve teased the lounges. That’s something, obviously, that there’s work underway.”
Jordan did not go into detail about the lounges but emphasized their potential value as part of the broader Southwest-Chase partnership.
“We’re not ready to formally announce that yet,” he said of the lounges. “The whole purpose, again, is to expand co-brand opportunities, expand the card set, and provide to our customers something that they really, really want.”
In keeping with its former low-cost strategy, Southwest does not currently operate any airport lounges. But Jordan has discussed adding them for almost a year, noting that passengers increasingly expect perks and benefits outside of their flight.
A lounge network would also square with Southwest’s new business direction, which centers on maximizing profits and introducing premium-type options and services for passengers willing to spend more. The carrier did away with some of its best known discounts, including free checked bags, under pressure from activist investor Elliott Management.
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.
