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The Street
The Street
Veronika Bondarenko

Another airline to introduce extra fee for carry-on baggage

As airlines cracked down on checked-bag fees over the past decade, many passengers determined to save money by making do with whatever fit into a carry-on.

In 2018, United Airlines, Delta and American Airlines all raised the checked-bag fee on economy tickets to $30 from $25 and then to around $40 this year.

With more economy passengers bringing carry-on suitcases and many older planes not equipped to hold that much baggage, airlines increasingly are asking travelers who bring the bags to the gate to check them for free.

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Air Canada is the country's flagship carrier.

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Air Canada sets fees for larger backpacks, wheeled cases 

Now, Air Canada  (ACDVF) , the country's flag carrier, said that beginning in January it would start charging basic-economy passengers to bring anything larger than a purse or small backpack aboard certain flights.

This model mirrors low-cost airlines such as Spirit  (SAVE)  and Frontier  (FRON) , in which the most basic tickets come only with a small personal item like a purse. 

As of Jan. 3, Air Canada's new fare structure will have anyone taking a basic-economy flight within North America — both Canada and the U.S. but also holiday destinations such as Mexico and the Caribbean — pay C$35 (US$25) for a first carry-on bag and C$50 (US$36) for a second. 

Those who do not register their checked bags when buying tickets or checking in for their flights at home will be charged an elevated fee, C$65 (US$46 USD) at the airport.

The fee, which Air Canada said "align[s] the airline's fare structure with similar fare offerings by other Canadian carriers," will apply not just to any bag with rollers or wheels but even larger backpacks that travelers bring aboard.

Related: Airline bets big on US-Canada travel with new flights

Transport minister questions new Air Canada fee 

The fare change caused an immediate outcry among both Air Canada travelers and Canadian lawmakers. 

Federal Transport Minister Anita Anand called for a mid-December panel with the chief executives of both Air Canada and peer Canadian airline WestJet to discuss the announcement. She said that the new carry-on fee, as well as the general trajectory of introducing new fees, left her "extremely concerned."

More on travel:

“Let's just say I'm not very happy today with what I've heard from Air Canada," Anand said in an interview on CTV's "Power Play." "I think they need to take a look at the persons that they are targeting with these excess fees. It is not acceptable."

Another change that Air Canada is pushing forward, but that flew somewhat under the radar amid the baggage-fee outcry, concerns seat changes.

Starting Jan. 21, passengers on basic-economy tickets will pay a fee to change their seats after check-in opens.

At most airlines they can choose for free among what is left available 24 hours before their flights, after those who qualify for early seat selection have confirmed theirs.

Air Canada has not yet specified how much that fee will be.

Related: Veteran fund manager sees world of pain coming for stocks

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