It’s Official: Southwest Airlines Airport Lounges Are Happening—First Ever Lease Approved In Honolulu

Southwest Airlines is officially getting into the lounge game. The airline now has an actual, approved lease for lounge space at the Honolulu airport.

Southwest Airlines Honolulu

Lounges Are A Crucial Part Of Southwest’s New Strategy

Airlines make far more money from credit card deals than they do from flying passengers. But Southwest Airlines has a disadvantage here. They don’t have partnerships that help customers redeem points for travel all over the world. And they don’t have the premium services like lounges that drive card acquisition by affluent, high spending customers.

At the same time, Southwest has been making changes to its business model that causes the airline to be like others. They’re charging for seat assignments and checked bags. They’re expiring travel credits and selling basic economy fares.

But that makes Southwest just like everyone else only less so. They don’t have high speed internet or seat back entertainment. They don’t have first class or galley ovens. They don’t have lounges. So premium customers don’t have a reason to pick Southwest beyond schedule and price – a race to the bottom.

Southwest Has Been Hinting At Lounges

Southwest’s business model, its customers, and co-brand card revenue now all point to Southwest needing premium products, including airport lounges. It’s been clear that they’re going to do just that.

• We know they’re talking with Chase, their cobrand card issuer (who also has lounges), about this. JetBlue is adding lounges, effectively paid for by their card issuer Barclays.

• They tested lounge access for cardmembers even two years ago.

• Southwest’s CEO teased lounges this summer and again last month.

• Dallas Love Field, an airport that’s virtually exclusive to Southwest, will get lounges for the first time.

• Southwest surveyed customers about lounges with premium credit card access saying clearly “Southwest Airlines Will Open Several Airport Lounges.”

There’s Now A Southwest Airlines Lounge Lease At Honolulu Airport

Entrance into the lounge space has hardly even been an open secret for the airline. Now, via Enilria we learn that Southwest has actually applied for a lease of 12,000 square feet of lounge space at the Honolulu airport. And the lease has been approved.

I found the original.

The lounge is in Building 342 at the airport, the former Garden Conference Center on the ground level and an adjacent Waiting Lobby on the second level, identified as Rooms 342‑155 (9,577 sf) and 342‑220H (2,664 sf), for a total of 12,241 square feet.

This is the area where the American Airlines/Japan Airlines; Korean; Qantas; IASS and Ko Olina/LeaLea lounges cluster today.

American Airlines Admirals Club-Japan Airlines Sakura Lounge, Honolulu

The 5 year lease is priced at $156.14 per square foot per year (the current lease signatory rate at the airport), so about $1.91 million per year with minimum buildout spend of $20 million.

Details on access aren’t yet available, or even if there would be any cobranding of the lounge. Construction takes time, so opening can be timed to the introduction of a new premium credit card.