Air Canada’s decision to introduce new fees for carry-on baggage and seat selection for its lowest-fare customers starting next year has drawn sharp criticism, including from Transport Minister Anita Anand, who voiced her concerns about the move.
“I was just made aware of a decision by Air Canada to introduce new carry-on baggage fees. I am extremely concerned,” Anand said in a statement on social media. “Canadians work hard and save up to travel. They rightly expect excellent service, not extra fees.”
From January 3, 2025, basic fare passengers on Air Canada’s North American and sun destination routes will need to check carry-on bags such as duffel bags, rolling suitcases, and large backpacks for a fee — $35 for the first bag and $50 for the second. Only small personal items, including purses and laptop bags, will be allowed on board for free.
Additionally, starting January 21, 2025, these passengers will need to pay to change the seat assigned to them at check-in, reinstating a policy temporarily suspended earlier this year due to backlash.
Air Canada says the changes align its fare structure with competitors like WestJet and Flair Airlines, which also restrict carry-on bags for their lowest fares. The move is part of a broader industry trend of unbundling services to attract cost-conscious travelers.
Critics argue that while the no-frills approach may lower base ticket prices, additional fees for carry-ons, seat selection, and other services ultimately drive up overall costs.
“This is a drip, drip, drip approach that works, but it’s not transparent,” said travel industry expert Richard Vanderlubbe, who called the trend “troublesome.”
Airlines across North America are increasingly adopting ancillary fees to boost revenue. Air Canada earned nearly US$2 billion from such fees in 2022, accounting for over 15% of total revenue, up from below 11% five years earlier, according to consulting firm IdeaWorksCompany.
The changes aim to better distinguish Air Canada’s fare tiers, the airline said. Customers in the “comfort economy” fare tier will see some benefits, including the ability to check two bags for free starting January 3.
The announcement sparked criticism from passengers and competitors alike. Budget carrier Flair Airlines highlighted its own lower-cost options in a social media post: “Now the choice should be clear. The products are the same, one just costs way less.”
However, fare comparisons reveal a complex picture, with prices often narrowing once additional fees are tallied.
Air passenger rights advocate Gabor Lukacs called for legislative intervention to regulate such fees, citing the burden on travelers.
As Canada’s largest airline faces backlash, Anand’s comments underscore growing government scrutiny over customer service in the airline industry. “Canadians deserve transparency and fairness in air travel,” she said.
Passengers are encouraged to carefully review fare