# Southwest Airlines Launching Airport Lounges and Premium Card in 2027
Southwest Airlines plans to enter the airport lounge business for the first time, opening premium lounges in Austin, Baltimore, Nashville, and Honolulu by 2027. The carrier will simultaneously roll out a new premium credit card, shifting its business model to compete directly with American Airlines, Delta Air Lines, and United Airlines in the high-margin loyalty and credit card space.
The lounge openings represent a major strategic shift for Southwest. The low-cost carrier has long resisted adding premium amenities that competitors offer as standard perks for elite frequent flyers and premium credit card holders. Now Southwest recognizes that customers across the industry expect lounge access as part of premium travel packages.
Austin, Baltimore, Nashville, and Honolulu serve as strategic entry points. Austin houses Southwest's operations center and attracts leisure and business travelers. Baltimore and Nashville are secondary hubs with growing traffic. Honolulu connects to a valuable West Coast leisure market. Southwest will likely expand lounge access to additional cities after these initial four locations prove successful.
The new premium credit card details remain sparse, but the timing signals Southwest's intent to capture higher-spending customers. Major carriers generate substantial revenue through premium card products. American Express and United's credit card partnership generated over $3 billion in annual revenue for United in 2022, for example. Southwest's current card portfolio, managed through Chase, focuses on rewards and modest annual fees. A premium tier product could include annual fees of $100 to $250, airport lounge access, priority boarding upgrades, and travel credits.
For Southwest customers, this changes the value equation. Elite frequent flyers who accumulate status primarily for lounge access now have an alternative path. Instead of flying 50,000 qualifying miles annually to reach A-List Preferred status, they can purchase a premium card. This particularly benefits leisure travelers who fly infrequently but want lounge amenities on occasional trips.
The credit card launch matters more than the lounges for Southwest's bottom line. Lounge operations generate modest revenue after accounting for construction, staffing, and maintenance costs. Credit cards produce recurring annual fees, interchange fees on purchases, and transfer partnerships. The premium card positions Southwest to compete for the high-net-worth travelers it traditionally underserved.
Competitors face pressure from Southwest's expansion into this space. The airline now contests established premium card products from American (The Platinum Card from American Express, annual fee up to $695), Delta (Delta Reserve American Express Card, annual fee $550), and United (United Club Infinite Card, annual fee $650). Southwest's new card will likely price aggressively to gain market share.
Business travelers and frequent leisure flyers should monitor the premium card terms when Southwest announces specifics in coming months. Current Southwest card holders may see new upgrade offers or incentives to switch. Customers heavily invested in competing airline premium cards should reassess value propositions once Southwest's product launches.
The lounge strategy signals Southwest's maturation from a pure low-cost carrier to a full-service network airline. That transformation has been underway for years, but physical lounge spaces and premium cards make it visible to customers. Airport lounges open in 2027, but the credit card product will likely launch earlier to build cardholder base and spending volume before lounge doors open.