Via a survey, Southwest Airlines is gauging customer sentiment on paying fees for checked bags. The airline is the only large U.S. carrier that doesn't charge checked-bag fees.
As reported by Bloomberg, Southwest began surveying customers last week and asked about scenarios in which the airline would charge bag fees. For example, it asked about a hypothetical policy in which Southwest's cheapest fare (Wanna Get Away) includes only a carry-on, while the next-lowest (Wanna Get Away Plus) would include one checked bag.
Bloomberg said it has seen part, but not all, of the survey, which also included questions about travel habits, booking preferences and loyalty/status benefits.
Southwest confirmed conducting the survey, saying it is part of the airline's due diligence to weigh customer sentiment.
"There's no work currently underway to change our industry-leading policy of [two free checked bags], but it's important for us to know what our customers value most," the airline said. "We'll continue our efforts to track stakeholder sentiment on many aspects of our business model to ensure we remain competitive and current on customer preferences."
In July, Southwest said its open-seating policy will be replaced next year with assigned seating, creating the potential for seat-selection revenue. The carrier also said it would introduce extra-legroom seats. Southwest aims to reverse sagging profit margins with both initiatives.
However, during Southwest's Q2 earnings call, CEO Bob Jordan said that airline would continue to include checked bags in the fare.
"After fare and schedule, bags fly free is cited as the top reason why customers choose Southwest, so it's not under consideration right now," Jordan said.
Jordan and Southwest's board are under pressure from Elliott Investment Management, an activist investment firm that has acquired an 11% stake in the airline and last week put forward 10 would-be board members that it plans to nominate as part of a proxy battle.
Elliott has also called for Jordan's ouster and contends that the airline has been too slow to change its longstanding business model.