Air Canada is making significant changes to its basic fare offerings starting January 3, 2025. Passengers who choose the lowest-fare option for North American or sun-destination flights will no longer be permitted to bring carry-on bags aboard without incurring additional fees. Instead, these travelers must check items like duffel bags, rolling suitcases, and large backpacks for $35 for the first bag and $50 for the second. However, small personal items such as purses or laptop bags, along with strollers, mobility aids, and medical devices, will still be allowed onboard at no extra cost.
Additionally, the airline plans to reintroduce seat selection fees for lower-tier customers beginning January 21, a policy briefly suspended earlier this year following backlash. Travelers opting for the basic fare will need to pay if they want to change their assigned seat at check-in.
These changes reflect a shift towards a budget-carrier model, aligning Air Canada with competitors like WestJet and Flair Airlines, which already offer ultra-low-cost fare tiers with minimal inclusions. WestJet’s “UltraBasic” fare, for example, only allows personal items and charges for seat selection, even after check-in.
Richard Vanderlubbe, founder of Tripcentral.ca, highlights the growing trend of unbundled ticket pricing, where airlines rely on ancillary fees to remain competitive. “Low-cost carriers dominate price-sensitive markets,” he said, adding that such fees, while often perceived as frustrating, allow airlines to cater to varying budgets. However, he noted the lack of transparency in the booking process, where hidden fees can significantly inflate the final ticket price.
Transport Minister Anita Anand expressed concern over Air Canada’s decision, stating, “Canadians work hard and save up to travel. They rightly expect excellent service, not extra fees.”
To balance these changes, Air Canada announced it will allow passengers on its mid-tier “comfort economy” fare to check two bags for free instead of one, beginning January 3. However, basic fare passengers attempting to bring ineligible bags to the gate will face a steep $65 fee per item.
This shift underscores the increasing influence of budget airline practices on traditional carriers as they strive to appeal to cost-conscious travelers amid rising inflation and interest rates.
