After a holiday meltdown in late 2023, Saturday Night Live joked that Southwest Airlines would be opening a premier lounge, which SNL guest Michael B. Jordan deadpanned was in “an active Starbucks” where “we just get there early and hold down two or three tables for ya'll.”
Two years after that sketch, Southwest is a totally different airline – now charging baggage fees, offering basic economy, and assigning seats on all flights starting in January – and the revamped Southwest has not been shy about its aspirations to be more like other airlines, including opening real lounges and offering a high-priced credit card to get you in.
In an interview at the annual Morgan Stanley Laguna Conference on Thursday, Southwest CEO Bob Jordan reflected on the past 11 months of Southwest's massive upheaval, but spent much of the time projecting his plans for what he hopes his airline can do for customers in the future.
Those plans include, yes, lounges and premium credit cards that'll get you in … but also long-haul flights and a more premium flying experience, too.
Jordan was careful to say there would be “no announcement today,” about lounges, cards, or long-haul flights, but he said “I've been not too coy about the things we are looking at.”
And if Jordan doesn't want to be coy, neither do I. Here's what Southwest's CEO wants for the airline's future.
Southwest Lounges and Premium Credit Cards
Jordan said the airline's calculus is simple: “What is it that customers want?” In response to his hypothetical question, the first thing he said was “Lounges.”
And his reason wasn't to shirk Saturday Night Live's jab of yesteryear, but rather to boost the company's bottom line from increased revenue in the Rapid Rewards loyalty program and co-branded credit cards.
“Not just because customers want [lounges], but the lounge access as a card benefit is what allows you to offer a $495, $595-a-year card … because it provides lounge access,” Jordan told investors. “So it's a huge potential additive to the Rapid Rewards Program.”
The introduction of a $495 or $595-a-year credit card isn't possible without lounge access. Right now, the highest-tier *sw priority* tops out at $229. The best perks of that card are seat selection and a free checked bag on every flight – nothing that would command an annual fee comparable to the top offerings from the likes of Delta, United, and American.
Read Next: Everything You Need to Know About Southwest Airlines Credit Cards
In order to charge their cardholders more – a goal of every airline, as their credit card relationships become a larger and larger part of their business – Southwest needs a new carrot. And a lounge to eat at drink at is a crunchy one at that.
As for where the airline would like to put new lounges, Jordan did not say. Some of their hub airports like Baltimore (BWI), Chicago (MDW), Denver (DEN), and Dallas Love Field (DAL) would make sense to serve the most customers. But when talking about customers Southwest would like to serve in the future, he specifically used Nashville (BNA) as an example where things like lounges would be attractive to customers.
Long-Haul Flights and More Airline Partnerships
Jordan admitted that for travelers who love Southwest, but also want a lounge, a premium seat, extra legroom, or to fly overseas, Southwest can't provide those things.
“You're going to pick another carrier,” he said Thursday about the hypothetical Nashville-based traveler who wants all those. “So we're going to force you to split your wallet, we're going to force you to carry another carrier's co-brand card, simply because we can't serve you. And that's the gap that we're closing.”
To close that gap, Jordan said “long-haul international served by Southwest” is the goal, admitting that his airline is “at the very beginning of that.”
Earlier this year, Southwest asked regulators for a permit to begin flying overseas, so the airline is on its way to offering more long-haul service. A partnership with Icelandair announced last year lead many in the travel world to speculate about some nonstop service to Reykjavik (KEF), which would allow Southwest customers to book onward to Europe on the Icelandic carrier, too.
An Iceland nonstop flight would make sense for another reason, though. Namely, that it's the shortest flight to Europe from the U.S., meaning the some of airline's fleet of narrow-body Boeing 737 airplanes (specifically the MAXs) could make it there without the need to order new planes.
“Don't be surprised if we go a more risk-tolerant route at first and choose a narrow-body to serve those routes,” he said to investors.
Still, he did say Southwest is looking into European markets that would require a wide-body plane, but worried aloud that “that's a lot of seats and a lot of cost.”
Besides its own flights overseas, Jordan said the airline already has plans to add to its list of international partners. In the past year, Southwest has inked deals with the aforementioned Icelandair, but also China Airlines and EVA Air in Taipei, Taiwan (TPE), too.
“I can't tell you which ones, but there are many in the pipeline right now,” Jordan said about future international airline partnerships.
Bottom Line
According to statements made by its CEO at an investor conference this week, Southwest Airlines wants to offer you lounge access, a $495-plus annual fee credit card, premium seating, and long-haul flights abroad.
While Bob Jordan made no concrete announcements, he was not shy about wanting his airline to offer more international service and a more premium experience to its customers.
