Air Canada Raises Checked-Bag Fees Amid Industry Shift

Air Canada recently announced an increase in its first checked-bag fee for economy-type fares, following a similar move by WestJet. This decision has sparked discussions among industry experts regarding its implications for both airlines and passengers.

Air Canada’s decision to hike its first checked-bag fee by $5 for economy-type fares has drawn attention from industry analysts. According to Karl Moore, an associate professor at McGill University, such moves are expected in a competitive market. He notes that airlines are driven by profit considerations and adjust fees accordingly to maximize revenue.

The rise in checked-bag fees prompts concerns about potential passenger reactions. Fred Lazar, an economics professor at York University, warns of a possible surge in carry-on luggage as travelers seek to avoid additional charges. This trend could lead to conflicts over limited cabin space, disrupting flight operations and inconveniencing passengers.

Effective from February 27, Air Canada’s new fee structure for the first checked bag ranges from $35 to $42 for basic and standard economy fares in select regions. Similarly, WestJet implemented a comparable fee increase for economy fares booked after February 14. This trend reflects a broader industry shift away from complimentary checked baggage, which was once standard practice.

Air Canada spokesperson Peter Fitzpatrick attributes the fee adjustment to maintaining competitiveness, while WestJet’s Julia Brunet emphasizes the role of bag charges in keeping base fares affordable. However, experts caution that rising checked-bag fees may exacerbate carry-on congestion issues unless addressed proactively by airlines.

Lazar suggests that airlines may need to reconsider their baggage policies to mitigate overcrowding in the cabin. Some carriers, such as Flair Airlines and Porter, already charge for cabin baggage on specific fare types. Despite speculation, neither Air Canada nor WestJet has indicated immediate plans to revise their carry-on policies.

Beyond baggage fees, Flair Airlines recently raised several other charges, including change and cancellation fees. This escalation in ancillary charges has caught some passengers off guard, underscoring the importance of reviewing terms and conditions before booking flights.