U.S. low-cost carriers (LCCs), which touted lower fares by cutting back on services compared with full-service carriers (FSCs), have recently begun opening airport lounges one after another as they move to beef up premium services.
On the 2nd (local time), Southwest Airlines, a leading U.S. LCC, said it will build its first airport lounge network starting next year. Southwest is building its first lounges at four locations—the Austin–Bergstrom International Airport, Baltimore/Washington Thurgood Marshall International Airport, Daniel K. Inouye (Honolulu) International Airport, and Nashville International Airport—with a goal of opening by the end of 2027.
Southwest also plans to add at least seven more lounges. Bloomberg News said, "Southwest has long shied away from the premium services offered by large rivals like Delta Air Lines and United Airlines," adding, "But now, as part of a sweeping strategy to improve profitability, it is focusing on offering higher-margin services."
Earlier, another U.S. LCC, JetBlue, opened its first proprietary lounge, "Bluehouse," at New York John F. Kennedy International Airport (JFK) in Dec. last year. It plans to open a second lounge this year at Boston Logan International Airport (BOS).
JetBlue, unusual for an LCC, operates a long-haul international business class called "Mint." The company plans to offer lounge access to passengers flying transatlantic routes in Mint class. In the second half of this year, it will also introduce new first-class seats on domestic routes to target premium customer demand.
LCCs that have focused on expense reduction are moving one after another to build lounges, which require considerable expense, to secure loyal customers and create stable revenue streams. In the airline industry, loyalty programs, whose revenue is easier to predict and margins are higher than ticket sales, are becoming increasingly important.
Lounges can also be used to generate additional revenue through partnerships with credit card companies. Delta Air Lines generated more than $8 billion (about 11 trillion won) in revenue in 2025 through its partnership with American Express. Delta has also said that lounge access is one of the key incentives that drives customers to sign up for high-annual-fee credit cards.
Southwest, too, will team up with JPMorgan Chase to offer lounge access to users of a newly launched rewards credit card. Tony Roach, a Southwest vice president, said, "Introducing a lounge network is a strategic investment in our mileage program and a step that further strengthens our 30-year partnership with Chase."
CNBC said of Southwest's lounge rollout that it "follows a trend in which multiple airlines and credit card companies such as American Express, Capital One, and Chase are expanding airport lounges to attract and retain high-spending customers."