MONTREAL - Some Air Canada passengers will once again have to dig a little deeper after the airline announced plans to charge for second checked bags on U.S. transborder and transatlantic flights as part of its effort to become profitable.
Canada's largest airline said customers purchasing economy class tickets -- Tango, Tango Plus and Latitude fares -- will continue to be able to check one bag for free in addition to carry-on luggage.
But beginning Jan 19, a second checked bag will cost $30 on U.S. transborder flights and $50 on flights to and from Europe and Israel. The charge will apply to flights to Hawaii but not to Puerto Rico.
"This change in baggage policy to match our U.S. and European competitors is an important step as we work toward sustained profitability," Ben Smith, Air Canada's executive vice-president and chief commercial officer, said in a news release.
"In this weak economy it is more critical than ever to continue reviewing all our activities on a regular basis and making adjustments as necessary to remain competitive with our industry peers."
Air Canada said the new baggage charge matches the prevailing checked bag policy of international carriers on U.S. transborder and transatlantic routes.
The largest U.S. legacy carriers charge $20 to $25 for first checked bags, and up to $35 for second bags.
But WestJet (TSX:WJA) and Porter said they have no plans to begin charging for bags on any of their flights.
Air Transat (TSX:TRZ.B) allows free checked bags weighing a total of 20 to 23 kilograms, depending on the destination.
WestJet spokesman Richard Bartrem said the airline introduced a guarantee in April that included two free checked bags.
Rick Seaney of FareCompare.com said Air Canada's fees are more a sign of the times than an act of desperation.
"Airlines have had it extremely tough in back-to-back years with the fuel crisis of 2008 and the recession of 2009," he said in an email.
Airlines have opted for optional charges like bags and increases on premium travel days to avoid instituting fees that might kill consumer demand, Seaney added.
"Passengers plain and simply don't like fees, many will be caught unaware and unprepared because of lack of transparency and vocal complaints will stream in for the most part on deaf ears," he added.
Air Canada's checked baggage policy of two free checked bags for economy class ticket holders remains unchanged for all travel within Canada, as well as to and from Mexico, the Caribbean, South and Central America, Asia and Australia.
The fee for a second checked bag to and from the United States, Europe and Israel will not apply to Air Canada prestige, elite, super elite members, or Star Alliance silver and gold members.
Executive class and executive first customers continue to receive an allowance of three checked bags on all flights, regardless of destination.
Air Canada's new baggage fee follows on the airline's decision to charge passengers extra for preferred seats with extra leg room including emergency exit rows and bulkhead seats.
Fees start at $14 per one-way trip and vary by length of flight, fare class purchased and the customer's Aeroplan status.
However, it removed call centre fees and relaxed standby rules in the Montreal-Toronto-Ottawa corridor.
The Montreal-based airline is attempting to find $500 million in additional revenue and cost savings as part of its effort to improve profitability.
