Air Canada’s new fees for carry-on luggage come into effect

Travellers flying with Air Canada who choose the cheapest fare option may want to start packing a little lighter: the airline's new fees for Basic-fare passengers have officially kicked in.

The policy, which began January 3, dictates that Basic fare passengers travelling to North American or sun destinations will no longer be allowed to carry on luggage and must pay $35 to check one bag.

The changes, however, allow customers of the airline’s lowest-price fares to bring aboard one personal item, such as a purse or laptop.

Larger items, such as roller-board or duffel bags, or large backpacks, will have to be checked pre-security, the airline says. A standard fee of $35 for the first bag will apply. For a second bag, the charge increases to $50.

READ MORE: Ottawa unhappy with Air Canada’s fee adjustments; travel advisors sound off

Customers who arrive at their boarding gate with ineligible carry-on items will be required to check this baggage for a $65 fee for each item, says Air Canada.

Mobility aids, medical devices, and child strollers are exempt from Air Canada’s new carry-on charges.

In addition, Status members, Star Alliance Gold, and Aeroplan premium credit cardholders will continue to be allowed one carry-on bag.

READ MORE: Air Canada to adjust Basic & Comfort fares starting January 3, 2025

The revised Basic fare will still include complimentary seat assignment at check-in for customers who have not paid a fee to select their seats in advance.

However, starting January 21, customers travelling on the revised Basic fare who wish to change their seat will be required to pay for the change.

Air Canada has also revised its Comfort economy fare. Under the new structure, Comfort customers, from January 3, are entitled to check two complimentary bags, whereas before the fare permitted only one checked bag.

“This is not acceptable"

The changes, which were first announced in December, have faced scrutiny.

Transport Minister Anita Anand was among the first to express displeasure with Air Canada’s new fees. “I think they need to take a look at the persons that they are targeting with these excess fees. It is not acceptable,” she told CTV in an interview on Dec. 4.

“This is not acceptable at a time when Canadians’ pocketbooks are hurting and when they've been saving for their travels,” Anand told the outlet.

In a statement, Air Canada said the new fees are “not new in the Canadian industry and is merely our competitive response.”

READ MORE: Airline execs appear before parliamentary committee, defend carry-on bag fees

In June, WestJet unveiled its "UltraBasic" ticket tier that does away with a free carry-on luggage and charges a fee for seat selection, including after check-in, whether online or in-person.

Sunwing, which belongs to the WestJet Group, has been charging fees for carry-ons for a while now, and low-cost carrier Flair Airlines has a similar policy.

On Dec. 13, the top executives from Air Canada, WestJet, Porter and Air Transat were called to appear before a parliamentary committee to discuss the issue.

Michael Rousseau, Air Canada’s CEO, argued that the airline’s revised fare offers flexible and more affordable options for travellers.

"Travellers tend to prioritize the lowest advertised price even if additional fees make the final cost higher, and small differences in pricing can determine whether we are considered at all," Rousseau told the committee.

WestJet’s CEO Alexis von Hoensbroech echoed that sentiment, noting how WestJet’s new “UltraBasic” fare comes down to offering travellers more choices.

The CEO said that more than a million customers have purchased tickets that don't allow carry-on bags.

"It's a choice,” von Hoensbroech told the committee. “Everyone who buys this knows [it doesn't include a carry-on bag]. This is not a surprise, this is something someone deliberately chooses.”

Customers who avoid carry-on bags also prevent delays that occur when overhead bin space on a flight runs out, he said.

Only a matter of time

PAX spoke to several Canadian travel advisors last month to get their take on Air Canada’s revised fees.

“Number one, I never sell basic fares, so this isn’t going to have a huge impact on my business,” said Ontario’s Nancy Wilson of Leisure Life Holiday. “Generally speaking, if my clients are asking for basic fares, I don’t book it, and I have them book it themselves. I also state they must then purchase cancellation insurance. Usually, once I’ve explained my reasoning, they agree to doing the next higher fare type.”

Wilson said she was “somewhat” happy with Air Canada’s decision.

“Quite honestly, I am getting tired of getting on a plane where it takes an extra 30 minutes on average, and usually results in a delayed departure, because everybody’s trying to fly with carry-on and there’s not enough room to store it,” she said.

Wilson said the new fees will be “difficult for a lot of people who like to fly with carry-on only.”

“But something needs to be done with how many people are bringing carry-on baggage only,” Wilson said. “I somewhat expected that it was a matter of time before there would be fees for carry-on bags.”

Frances Gertsch of Stewart Travel Group in P.E.I. thinks Air Canada's change brings the airline up to speed with other carriers.

It also makes the fare options “easier to understand, which is helpful for travellers,” she said.

“That said, the extra fees for basic fares could be a tough pill to swallow, especially for families trying to keep costs down,” she said. “As a travel advisor, I don’t usually recommend basic fares because of the restrictions—they work for budget travellers with flexible plans, but you really have to weigh the low price against the risks.”

Air Canada Vacations, meanwhile, has confirmed that Air Canada’s new baggage fees do not apply to its customers.

Under ACV’s “Vacation Promise,” which also applies to groups, the first checked bag is free per person on any ACV vacation package that includes air, the tour operator wrote in a message to the trade.

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