Air Canada Implements New Carry-On Bag Fees

(Reuters) – Air Canada (TSX:AC) announced on Wednesday that starting January 3, it will charge for larger carry-on bags for passengers selecting its lowest-priced basic fare on North American routes, sparking immediate backlash from Ottawa.

Passengers must now pay for larger items like roller bags, duffel bags, or large backpacks, with fees set at C$35 for the first bag and C$50 for a second.

This follows a similar move by United Airlines, which requires basic economy passengers to pay at least $35 for carry-on bags.

Canadian federal Transport Minister Anita Anand expressed her concern over the new fees, stating, "Canadians work hard and save up to travel. They rightly expect excellent service, not extra fees," in a social media post.

Travelers can still bring a small personal item, such as a purse or laptop bag, that fits under the seat.

Airlines have been increasing checked baggage fees for North American flights due to rising maintenance and labor costs.

Additionally, Air Canada will charge basic fare passengers if they wish to change their seat from the one assigned at check-in. In contrast, the Montreal-based airline plans to increase checked baggage allowance for customers traveling worldwide on its comfort economy fare, allowing passengers to check two complimentary bags.