Airport lounges, Europe and premium class are on the desk, Southwest CEO says

ARLINGTON, Texas — Southwest Airways is contemplating airport lounges, extra premium seating and even long-haul worldwide flights to win over high-spending prospects, CEO Bob Jordan stated Wednesday.

“No matter prospects want in 2025, 2030, we cannot take any of that off the desk. We’ll do it the Southwest approach however we’re not going to say ‘We might by no means try this,'” Jordan stated in an interview with CNBC at an airport trade convention. “We all know we ship prospects to different airways as a result of there’s some issues you may want which you could’t get on us. That features issues like lounges, like true premium, like flying long-haul worldwide.”

Southwest is in the course of a metamorphosis. That has included undoing a few of its insurance policies like open seating, a uniform cabin and permitting all prospects to test two baggage at no cost, issues that had set it aside from rivals in a lot of its 54 years of flying.

But it surely has confronted stress from opponents, and an activist investor final 12 months pushed the provider to extend income. And airfare within the U.S. has dropped.

Southwest and different carriers pulled their 2025 forecasts earlier this 12 months, citing financial uncertainty. Jordan stated Wednesday that the airline is constant to see cheaper fares.

“The summer season is mostly by no means on sale, and the summer season is closely on sale proper now,” he stated.

Regardless of making main adjustments to its enterprise mannequin, Jordan stated the provider hasn’t seen prospects defect to different airways because it launched no-frills primary economic system tickets and bag charges late final month, insurance policies rivals already had.

However making adjustments on the excessive finish is vital, too, he stated.

Opponents like Delta Air Strains, United Airways and American Airways have added extra luxurious tourism locations and roomier, dearer seats, they usually’ve additionally invested closely in airport lounges. For instance, earlier Wednesday, American unveiled plans to almost double its lounge house at its Miami Worldwide Airport hub.

Jordan stated it is “approach too quickly to place any specifics” on potential adjustments, however he referred to as out Southwest stronghold Nashville Worldwide Airport — the place the airline has a greater than 50% market share, in keeping with airport knowledge — as a spot the place prospects are hungry for luxurious.

“Nashville loves us, and we all know we have now Nashville prospects that need lounges. They need top quality. They need to get to Europe and they will Europe,” he stated.

However getting these issues means these prospects need to e book on one other airline, which might make them extra probably so as to add that rival’s co-branded bank card to their wallets, too, he stated.

“I need to ship fewer and fewer prospects to a different airline,” he stated.

Jordan stated it is also too early to say whether or not Southwest will make the shift to purchasing longer-haul plane, which it might have to go to Europe; it is relied on the Boeing 737 for greater than half a century. Southwest has been forging worldwide partnerships — Icelandair and China Airways, up to now— however a Southwest airplane touchdown in Europe sooner or later is on the desk, he stated.

“No dedication, however you possibly can actually see a day after we are as Southwest Airways serving long-haul locations like Europe,” he stated. “Clearly you would want a special plane to serve that mission and we’re open to what it might take to serve that mission.”

Within the nearer time period, Southwest continues to be awaiting deliveries of Boeing 737 Max 7s, the smallest airplane within the Max household, which nonetheless hasn’t gained Federal Aviation Administration certification. Jordan stated the producer has made progress with extra constant deliveries not too long ago, however Southwest would not count on to fly the Max 7 in 2026.