Air Canada Adjusts Baggage Fees Amidst North American Airlines' Trend

In recent developments that resonate across the travel industry, Air Canada, the national carrier of Canada, has updated its checked baggage fees, marking a significant trend among North American airlines. This adjustment comes as a strategic move aligning with similar actions taken by various carriers in the region, signifying a collective shift towards modifying ancillary charges.

The modification of Air Canada's baggage fees became effective on February 28th, introducing a $5 increase for the standard checked baggage. This adjustment positions Air Canada alongside other major airlines in the industry, setting the fees at $35 (US/CAD) for the first checked bag and $50 (US/CAD) for the second. These changes apply to domestic flights as well as international travels between Canada and several destinations including the US, Mexico, Central America, and the Caribbean.

Reflecting on the airline's history, Air Canada initiated a $25 (US/CAD) fee for checked baggage back in 2014, a practice adopted from other airlines like WestJet and Porter Airlines. Fast forward a decade, this fee has escalated by 40%, a move that can be perceived as an adjustment in line with inflation trends.

This increment is part of a broader pattern observed among North American carriers, where several airlines have announced similar hikes in baggage fees. Notably, Delta Air Lines recently declared a $5 increase in their fees, following suit after United Airlines, American Airlines, and JetBlue, among others. WestJet, Canada's second-largest carrier, also adjusted its baggage fees by CAD$5 ($3.60) two weeks prior to Air Canada's announcement. However, WestJet offers variability in its charges based on when the baggage is added to the booking, unlike Air Canada's standardized fees.

The rationale behind separate baggage fees lies in the airlines' strategy to offer competitive base fares amidst fluctuating demand for air travel post-pandemic. Despite a forecasted slowdown in travel demand across North America, airlines aim to attract travelers with appealing ticket prices. This strategy, however, might not be as welcomed by passengers still finalizing their travel arrangements, especially in light of The Financial Post's report indicating a 14% decrease in average airfares in Canada compared to the previous year, yet still remaining 10% higher than January 2019 rates.

As the travel industry navigates through these changes, passengers and travel enthusiasts alike are keenly watching how these adjustments will shape their travel plans and the overall experience with airlines.