Southwest Airlines will open premium airport lounges starting late next year, a major shift for a carrier known for catering to budget travelers. The airline announced construction on its first four lounges at Austin-Bergstrom International Airport, Baltimore/Washington International Thurgood Marshall Airport, Daniel K. Inouye International Airport in Honolulu, and Nashville International Airport, with at least seven more planned.

"We know our current customers want lounges — especially in the initial locations we've chosen," said Bob Jordan, Southwest's chief executive. Mr. Jordan had teased the idea for months, including in a July earnings call, stressing the importance of retaining loyal customers.

Southwest will partner with J.P. Morgan Chase on the lounges, including a new co-branded premium credit card. Chase already operates Sapphire Reserve Lounges at nine airports, including Dallas Fort Worth, Harry Reid International in Las Vegas, and La Guardia and Kennedy Airports in New York.

The expansion follows pressure from Elliott Management, a hedge fund that amassed a sizable stake in 2024. Sally French of Nerd Wallet called it a "stark shift from the former Southwest brand identity built around simplicity and egalitarianism."