CEO Hints at Lounges, Long-Haul Routes to Compete for High-End Travelers
Southwest Airlines is rethinking its traditional low-cost approach as it eyes a more premium future. In a major shift, CEO Bob Jordan said Wednesday the carrier is exploring options such as airport lounges, first-class seating and even long-haul international routes to better serve higher-spending customers.
“We won’t take any of that off the table,” Jordan said during an interview with CNBC at an airport industry conference. “We know we send customers to other airlines because there are some things you might want that you can’t get on us.”
The comments mark a departure from Southwest’s decades-long model of open seating, a single-class cabin, and two free checked bags. Now, the airline is considering features it once dismissed, driven by rising competitive pressure and declining U.S. airfare trends.
Transformation Underway
Southwest has already started undoing some of its signature policies, including the recent introduction of basic economy tickets and bag fees — long the standard among competitors like Delta, United and American.
Yet even as it makes changes at the budget end, Jordan emphasized the importance of upgrades at the premium level. “I want to send fewer and fewer customers to another airline,” he said, noting that high-end travelers often defect for perks Southwest doesn’t yet offer — such as lounges or nonstop flights to Europe.
He pointed to Nashville International Airport, a major Southwest hub, as a clear example: “Nashville loves us, and we know customers there want lounges and first class. They want to go to Europe, and they’re doing it — just not with us.”
Europe Flights and New Aircraft?
While a timeline remains unclear, Jordan said long-haul international service is on the table. Serving Europe would require aircraft beyond Southwest’s traditional fleet of Boeing 737s. The airline currently relies on international partnerships with carriers like Icelandair and China Airlines, but a direct transatlantic service may be in its future.
“No commitment,” Jordan said, “but you can certainly see a day when Southwest is flying to Europe.”
Southwest is also awaiting certification for Boeing’s 737 Max 7, its next-generation narrowbody aircraft. However, Jordan confirmed the plane is unlikely to enter the fleet in 2026, citing delays with FAA approvals.
Market Pressures Mount
The airline’s shift comes as domestic airfare remains weak. “The summer is heavily on sale right now, and that’s unusual,” Jordan noted. Southwest, like many carriers, pulled its 2025 forecast earlier this year due to economic uncertainty.
Competitors are also ramping up their luxury offerings. American Airlines, for instance, announced plans this week to double lounge space at its Miami hub. Meanwhile, Southwest faces added pressure from activist investors demanding higher revenues and improved customer retention.
“Whatever customers need in 2025 or 2030, we’re open to it — as long as we do it the Southwest way,” Jordan said.
