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While access to an airline’s airport lounge network is one of the main perks of sticking with a given carrier long enough to earn status, this only ends up being worth it if one regularly flies through the airports that have them. The bare-bones, no frills model has traditionally made the budget airline model incompatible with the airport lounge. But as more low-cost airlines develop strategies to attract high-spending customers, things may change. As first reported by aviation watchdogs, Southwest Airlines recently received Department of Transportation (DoT) approval to open a 12,00-square-foot lounge inside Terminal 2 of Honolulu’s Daniel K. Inouye International Airport (HNL). After making a string of defining cuts such as scrapping its free bag and open seating policies over the last year, the Dallas-based carrier has repeatedly hinted at the possibility of the airline creating lounges. This comes after it significantly expanded its flights into Hawaii’s Oahu and Maui islands from different U.S. cities back in 2024. “We’re actively looking at continued changes to widen our product offering for our customers including things like premium seating, airport lounges and long-haul international destinations,” Southwest CEO Bob Jordan told investors at an earnings call on Oct. 23. While the document summarizing a meeting of the DoT’s Hawaii branch is scant on specifics of the new lounge, it does state that “issuance of a direct lease for the development, construction, and maintenance of a VIP airline lounge” for Southwest Airlines has been granted. When will the new Southwest Airlines lounge open? Southwest Airlines hasn’t yet officially announced the new lounge. The document states that the space will occupy two floors — a 9,577-square-foot ground space and a 2,664-square-foot top floor — while costing the airline $1.91 million per year in leasing. Over the last two years, Southwest has struggled to craft a new course after investment firm Elliott Management bought enough company stock to call shareholder meetings. The cost-cutting pushes helped lead the carrier away from a long string of unprofitable quarters, but also led to a situation in which customers who chose Southwest precisely for perks such as free baggage and open seating now have no reason to choose it over a competitor. More on travel: Major airline launches surprising flight between Las Vegas and Paris United Airlines CEO gives stark warning on Olympic Games The highest rooftop in Barcelona is in a surprising place US government issues sudden warning on Switzerland travel Lounges, in turn, are part of the same multi-pronged effort for Southwest to reinvent itself as a more premium airline amid much industry criticism about whether it will be able to compete with mainstream airlines with larger lounge networks and more resources to pour into making them nicer. “Unlike other carriers that bring in celebrity chef-designed menus, and build sprawling lounges, Southwest will likely be more reserved,” Kyle Stewart wrote for aviation outlet Live And Let’s Fly. “It will also operate from some alternative airports where the airline is likely to depart for long-haul flights. Baltimore, perhaps, but Chicago Midway, Dallas Love, and Houston Hobby are all huge hubs for Southwest’s current footprint, but do not cater to larger carriers that operate lounges.”
