Southwest CEO says airline is ‘actively pursuing’ its airport lounge network

Southwest Airlines “is actively pursuing” the possibility of opening an airport lounge network, CEO Bob Jordan told CNBC on Wednesday, as the airline industry continues to fight for premium travelers.

“I think the lounges would be a huge next benefit for our customers,” Jordan said in an interview. “And you [would] have a network of salons that allows you to offer this premium credit card that gives access to the salon.

Southwest discusses airport leases and lounge opportunities with credit card partner, Hunting. The Dallas-based airline won approval in October for an airport lounge at Honolulu’s Daniel K. Inouye International Airport.

Jordan declined to provide a timeline for opening what would likely be a “network” of airport lounges, but said “it’s clear our customers want lounges, and we’re looking for the customer.”

“We’re going to make sure we have a salon network that meets the needs of the network we have,” he said.

The major carriers of Delta Airlines to the little ones like JetBlue Airwaysas well as credit card companies like American Express, Capital one and Chase built airport lounges, spaces they relied on to attract and retain high-spending consumers.

A JD Power report released Wednesday said 82% of respondents said they chose an airline based on lounge access.

Southwest, which carries more customers domestically than any other airline, has dramatically changed its business model over the past year, eliminating open seating in favor of assigned seating, among other things. It even began charging customers for checking bags earlier this year to boost revenue as pressure intensified from activist Elliott Investment Management.

Southwest began offering free Wi-Fi to members of its loyalty program this fall. Jordan said the company is open to looking at other onboard internet providers, including Space United Airlines recently started using it.