Southwest CEO says airline ‘actively pursuing’ airport lounge network

Southwest Airlines The airline industry continues to struggle for premium passengers, CEO Bob Jordan told CNBC on Wednesday.

“I think the lounges will be a huge benefit for our customers,” Jordan said in an interview. “What about you [would] Have a lounge network that allows you to offer a premium credit card that provides lounge access.”

Southwest is discussing airport rental and lounge opportunities with its credit card partner. To follow. The Dallas-based airline received approval for an airport lounge at Honolulu’s Daniel K. Inouye International Airport in October.

Jordan declined to give a timeframe for the opening of what will likely be a “network” of airport lounges, but said “it’s clear our customers want lounges, and we’re after the customer.”

“We will make sure we have a network of lounges that meet the needs of the network we have,” he said.

major carriers Delta Airlines smaller ones like JetBlue Airlinesas well as credit card companies such as American Express, Capital One and Chase are building airport lounges, areas they lean on to recruit and retain higher-spending consumers.

A J.D. Power report released Wednesday said 82% of survey respondents said they choose an airline based on lounge access.

Southwest, which carries more customers domestically than any other airline, has drastically changed its business model in the past year, ditching open seating in favor of reserved seating, among other things. It even began charging customers for baggage checks earlier this year to boost revenue as pressure from activist Elliott Investment Management mounts.

Southwest began offering free Wi-Fi to loyalty program members this fall. Jordan said the company is open to exploring other inflight providers for inflight internet, including Space X’s Starlink service. United Airlines I started using it recently.