Air Canada (AC) has announced plans to ban carry-on bags and impose a seat selection fee for its lowest-fare customers beginning in 2025.
Starting Jan. 3, basic fare passengers on trips within North America and to sun destinations will have to check duffel bags, rolling suitcases and large backpacks for a fee — $35 for the first item and $50 for the second.
A small personal item such as a purse or laptop bag will be allowed on board for free, as will strollers and medical devices.
The country's largest airline also said that as of Jan. 21, lower-tier customers will have to pay if they want to change the seat assigned to them at check-in.
Air Canada previously tried to charge its lowest fare customers for seat selection but quickly canceled the policy amid a backlash from travellers.
The latest moves come as Air Canada uses ancillary fees to raise its revenue. The Montreal-based carrier already charges extra for checked bags, on-board snacks, and Wi-Fi access.
Air Canada took in nearly $2 billion U.S. in ancillary revenue in 2022, up nearly 50% from five years earlier, according to airline consulting firm IdeaWorksCompany.
Air Canada says the new changes align its fare structure with other Canadian carriers.
In June, WestJet rolled out its "UltraBasic" fare that allows no more than a personal item on board that is to be stored under the seat and charges a fee for seat selection.
Discount carrier Flair Airlines charges up to $74 for carry-on items, depending on the size.
Air Canada said that basic fare passengers who arrive at the boarding gate with ineligible bags will be charged $65 per item to check them.
Most major U.S. carriers, such as American Airlines (AAL), still allow travellers to bring a carry-on bag onto flights at no charge.
Air Canada’s stock is down 50% since the Covid-19 pandemic struck in 2020 and trading at $25.20 per share, the same level it was at in 2017.
