Southwest Airlines Lounge Investment Cost: $53 Million for a Carrier That Still Has No First Class

Southwest Airlines plans to open a lounge of about 30,000 square feet at Nashville International Airport, with reported construction and fit-out costs of $53 million. The carrier, which until recently offered self-selected seats at the gate, has been changing its product: assigned seating was introduced in January 2026, and it has also added extra-legroom options. The lounge rollout includes four initial locations—Austin, Baltimore, Honolulu, and Nashville—and Southwest expects to expand the network up to at least eleven lounges in high-demand markets. Before the first lounges open in late 2027, a new co-branded Chase credit card is expected, with an annual fee reported around $595; premium-card holders would receive complimentary food and beverages, a calmer waiting area, and a more upgraded airport experience. The strategy depends on increasing customer “buy-up” behavior, with early data showing about 60% of customers upgraded in the first quarter of 2026, up from roughly 20% the year before.