Southwest Airlines announced on December 10 2025 that it will launch a network of airport lounges, beginning with a new facility at Honolulu’s Daniel K. Inouye International Airport. CEO Bob Jordan said the move is part of a broader strategy to add premium services that complement the airline’s recent shift to assigned seating and baggage‑fee policies.
The Honolulu lounge received approval from the Hawaii Department of Transportation on October 9 2025, and the facility is slated to open in early 2026. Southwest is partnering with Chase, its co‑branded credit‑card issuer, to offer lounge access to cardholders and Rapid Rewards elite members. The project is estimated to cost $20 million in renovations and will provide a 400‑seat capacity with complimentary food, beverages, and workspaces.
Southwest’s lounge strategy is designed to diversify revenue beyond ticket sales. By offering a premium experience, the airline aims to attract business travelers and high‑spending leisure customers who are willing to pay for comfort and convenience. The lounges will also enhance the value proposition of the Rapid Rewards program and the new premium Southwest credit card, potentially increasing card‑holder spend and loyalty program enrollment.
The company plans to roll out additional lounges in key markets such as Baltimore/Washington (BWI), Denver (DEN), and Nashville (BNA) over the next 18 months. Southwest estimates that the lounge network could generate $200 million to $250 million in annual ancillary revenue once fully operational, while also supporting the airline’s goal of raising its operating margin through higher‑margin ancillary services.
"We’re actively looking at continued changes to widen our product offering for our customers," said Jordan. "The lounge network is a natural extension of our premium strategy, and it will help us compete more directly with legacy carriers while staying true to Southwest’s low‑cost DNA.”
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