Air Canada to Introduce Carry-On Fees for Basic Fares in 2025
Air Canada has announced significant changes to its baggage policy for passengers traveling on the lowest-priced basic fare for North American routes. Starting January 3, 2025, travelers opting for this fare will need to pay extra for larger carry-on items such as roller boards, duffel bags, and large backpacks. This policy shift, which follows a similar move by United Airlines, has drawn criticism from various quarters, including Canadian government officials and air travel experts.
What Are the New Rules?
Under the updated policy, passengers traveling on Air Canada’s basic fare will:
Only be allowed one small personal item: Examples include purses, laptop bags, or other items that fit under the seat in front of them.
Be charged for larger carry-on items: The fee will be CAD 35 for the first bag and CAD 50 for a second bag.
Pay elevated fees at the gate: Passengers who fail to check in their carry-on bags before security will face a higher fee of CAD 65.
The changes align with the policies of other Canadian carriers, such as Porter, Flair, and WestJet, which introduced its Ultrabasic ticket last year. These airlines have removed complimentary carry-on options for their lowest-priced fares, framing the changes as a way to streamline costs and reduce inefficiencies.
Additional Fees for Seat Selection
Alongside carry-on charges, Air Canada will introduce seat selection fees for basic fare passengers starting January 21, 2025. Travelers who wish to change their seat from the one automatically assigned at check-in will need to pay an additional fee. The exact cost will depend on the seat chosen and other factors that have not yet been disclosed.
Government and Public Reactions
The policy has sparked significant backlash:
Canadian Transport Minister Anita Anand voiced her concern, stating, “Canadians work hard and save up to travel. They rightly expect excellent service, not extra fees.”
Travelers’ Frustrations: Passengers at Toronto’s Pearson International Airport expressed surprise and dissatisfaction. Anne Creighton, a traveler to Fort Myers, Florida, remarked, “I don’t agree with that, ’cause you pay enough for the fare to begin with. Everybody has something they have to carry on.”
Mixed Reviews from Experts: While some see the move as unfair, others argue it provides benefits. Duncan Dee, former COO of Air Canada, suggests that the stripped-down ticket offers better options for travelers who prefer minimal baggage.
Economic and Operational Impacts
Airlines have cited rising maintenance and labor costs as reasons for increasing fees. Fred Lazar, an associate professor of economics at York University, points out additional advantages for airlines:
Revenue Growth: By charging for carry-ons, airlines tap into a new revenue stream.
Incentivizing Memberships: Air Canada’s policy offers exemptions for Star Alliance Gold members, Aeroplan premium credit cardholders, and status members, potentially encouraging more travelers to sign up for memberships.
However, aviation management expert John Gradek emphasizes the importance of regulatory oversight, arguing that these changes further diminish customer service in the Canadian air travel industry.
International Comparisons
Air Canada’s decision mirrors global trends:
United Airlines: Charges at least USD 35 for carry-on luggage for basic economy passengers.
Budget Airlines in Europe: In 2023, Spain fined five airlines for charging extra for carry-ons, citing violations of consumer rights.
Changes for Comfort Economy Passengers
While the basic fare is losing perks, Air Canada is enhancing benefits for its comfort economy passengers. Starting January 3, 2025, travelers on comfort fares will be allowed two complimentary checked bags instead of one for international routes. This move could appeal to travelers who value convenience and are willing to pay a premium for it.
Implications for Travelers
The removal of complimentary carry-on luggage for basic fares may influence traveler behavior in various ways:
Comparison Shopping: Passengers will need to scrutinize ticket prices closely to account for added fees.
Membership Uptake: Frequent flyers may consider joining Aeroplan or upgrading their fare class to avoid baggage fees.
Shift to Competitors: Some travelers may opt for competitors offering more inclusive pricing.
Tips for Navigating the New Policy
Pack Strategically: Use smaller bags that qualify as personal items to avoid carry-on fees.
Book Higher Fare Classes: Consider whether upgrading to a higher fare might be more cost-effective than paying for add-ons.
Check Policies in Advance: Ensure you’re aware of baggage fees and rules before booking.
Join Loyalty Programs: Memberships like Aeroplan can offer substantial savings on baggage and other perks.
Final Thoughts
Air Canada’s decision to impose carry-on fees for basic fares is a significant change that reflects broader trends in the airline industry. While it offers potential cost savings for minimal travelers, the new policy adds financial and logistical challenges for many. As the policy takes effect, passengers will need to adapt to this evolving travel landscape by planning and budgeting more carefully.
For those considering Air Canada or other carriers with similar policies, staying informed and flexible is essential. Whether you’re traveling light or seeking comfort, understanding the fine print can make a significant difference in your overall travel experience.
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Sources:
CBC News – Air Canada’s carry-on changes spark mixed reactions
Reuters – Air Canada to charge for carry-on bags on basic fares
Expert interviews with Fred Lazar and John Gradek
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