Southwest Considers Airport Lounges in Premium Push

Southwest Airlines has given its clearest indication yet that airport lounges may form part of its continuing commercial transformation. Potential locations under consideration include Denver, Honolulu and Nashville. The carrier believes lounges could strengthen its loyalty programme and expand opportunities linked to its co-branded credit cards. Such a move would represent another major departure from Southwest’s traditional low-cost model, following the introduction of extra-legroom seats, baggage fees, basic-economy fares and wider third-party distribution. The strategy appears to be supporting performance, with the airline reporting a 6.7% adjusted operating margin during the second quarter.