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Southwest Airlines explores long-haul routes and lounges amid strategic overhaul

Southwest Airlines explores long-haul routes and lounges amid strategic overhaul
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Southwest Airlines | Provided Photo

Southwest Airlines is considering a shift in its business model, with potential plans to introduce long-haul flights, airport lounges, and possibly widebody aircraft. CEO Bob Jordan discussed these prospects during the US Chamber of Commerce's annual summit in Washington DC.

Currently, Southwest operates an all-Boeing 737 fleet focused on short-haul routes. The airline has made several changes to its operations over the past year under the influence of Elliott Investment Management, which acquired a significant stake in 2024. Elliott has been pushing for improvements in short-term profits by encouraging Southwest to adopt strategies used by legacy carriers.

Southwest recently entered into interline agreements with Icelandair and China Airlines. These partnerships allow Southwest to sell tickets to destinations outside its own network and could be the first step toward developing a long-haul network.

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The airline is evaluating options for premium long-haul service, including the possibility of adding widebody aircraft such as the Boeing 787 or Airbus A330neo. However, CEO Bob Jordan noted that "while a widebody could be in the cards in the distant future, it's not something that would happen soon." For now, expanding with existing Boeing 737 MAX models appears more likely due to their range capabilities and operational efficiency compared to introducing new aircraft types like the Airbus A321XLR.

In addition to route expansion, Southwest is considering building airport lounges—a move aimed at elevating its brand image and competing with other major US airlines that offer premium services. Legacy carriers such as American Airlines, Delta Air Lines, and United Airlines have extensive lounge networks that are popular among frequent flyers.

Market trends currently favor airlines with robust frequent flyer programs and premium branding. Legacy carriers operate large fleets—United Airlines has 1,051 aircraft (228 widebodies), American Airlines has 998 (134 widebodies), and Delta Air Lines has 991 (176 widebodies)—while Southwest operates over 800 aircraft but no widebodies.

The COVID-19 pandemic ended Southwest’s nearly five-decade streak of profitability. While other major airlines have since rebounded financially, Southwest continues to adapt its strategy under Elliott’s direction. Changes have included joining global distribution systems (GDS), introducing assigned seating, and removing free checked bags—moves designed to align more closely with full-service competitors.

By exploring long-distance flights and enhanced amenities like lounges, Southwest aims to position itself more competitively within a market increasingly dominated by legacy carriers’ premium offerings.

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