Southwest Will Open Airport Lounges by Late 2027
The airline plans to launch premium lounge spaces as part of a significant business model transformation.
Updated on Sept. 23, 2026 in Business Travel
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Southwest Airlines will debut its first airport lounges in late 2027 as part of a move to capture the business travel market. The carrier is currently building out infrastructure in locations including Nashville, Austin, Baltimore, and Honolulu.
Why it matters
Southwest is shifting its business model to court premium credit card holders and business travelers. The airline is utilizing its co-branded partnership with Chase to finance these major infrastructure investments.
The planned Nashville facility will span 30,000 square feet, with construction costs estimated at $53 million per location. Southwest aims to grow this footprint to a total network of at least eleven lounges.
The players
Southwest Airlines
This major American carrier is known for its low-cost model and single-aircraft fleet strategy.
Chase
This multinational financial services firm maintains a long-standing co-branded credit card partnership with the airline.
The details
The airline is creating a tiered experience within its single-cabin aircraft by offering extra-legroom seats and lounge access. This strategy is supported by an expected $595 annual fee for a new co-branded Chase credit card that will launch before the lounges open.
Timeline
January 2026: Southwest introduced assigned seating.
Q1 2026: 60% of Southwest customers purchased product upgrades.
Late 2027: The first airport lounges are scheduled to open.
Travel Outlook
The transition of Southwest to a tiered pricing and premium service model represents a significant departure from the airline's historic focus on uniform low-cost travel. This expansion reflects a broader industry shift as carriers compete to secure high-value travelers through loyalty-based amenities.
Travelers should anticipate higher premium costs, as the new co-branded credit card is expected to carry a $595 annual fee. These changes suggest that frequent Southwest fliers will soon face a more tiered service experience compared to the airline's traditional base product.
The takeaway
The move demonstrates a focus on increasing customer upgrade rates, which reached 60% in early 2026 compared to 20% in 2025. Travelers should track credit card benefits closely to determine if the premium lounge access justifies the expected $595 annual fee.
What happens next
A new co-branded Chase credit card is expected to be introduced to customers before the first lounges open in late 2027.
Further reading
For more on the changing landscape of corporate air travel, visit the Business Travel section.
Source note: This article includes information reported by Financial News.
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