Checked baggage extra for Canada-bound Aussie travellers as fares continue to ‘unbundle’

The unbundling of airfares has delivered a raft of ‘add-on charges’ for passengers, and now Air Canada has found another one that will sting Australian travellers.

In a worrying new trend for travellers, Air Canada has removed checked bags from its trans-Pacific economy fares, meaning Australian passengers will have to fork out extra to take a suitcase.

The move took effect on January 21, and follows Air Canada’s introduction of a fee for carry-on luggage on domestic and US flights.

It means travellers booking a flight from Australia to Canada on the lowest fare available, will have to fork out an extra $84 for a checked bag, or $112 for two.

Australian Frequent Flyer editor Matt Graham says it was unlikely anyone would travel that route without a checked bag, so it appeared to be an unwelcome change.

“All this does is distort the advertised pricing,” he said.

“Air Canada may now be able to offer slightly lower base fares than its competitors but most Air Canada passengers will end up paying more for a fare that includes a bag anyway, or face a nasty surprise at check in when they’re asked to fork out an extra $84 each way to check in a bag they would be able to bring for free on United, Delta, American, Qantas, Fiji Airways, Air Zealand or Hawaiian Airlines.”

Air Canada has unbundled its economy fares further to remove checked baggage from its cheapest seats.

Mr Graham said Fiji Airways tried a “hand luggage only” fare on flights to North America in 2023, but scrapped it when passengers pushed back.

Air Canada did not try to justify its decision, simply informing the passenger it had “revised its checked baggage policy for customers purchasing an economy basic fare”.

It highlights the insatiable appetite of airlines for new revenue streams to boost relatively slim margins.

In the last year, fees charged by airlines for checked and carry-on bags delivered $52bn in revenue worldwide.

The figure was up 15 per cent on the previous year, when airlines raked in $46bn.

Although most US carriers except for Southwest charge extra for checked baggage on domestic routes, none is yet to extend the fees to international flights.

Air Canada is leading the way in fare unbundling, with new charges for carry on and now checked luggage on international routes.

In Australia, Qantas includes at least 23kg of checked baggage in all fare types on domestic and international flights, but Jetstar passengers pay extra, as do Virgin Australia customers booking economy lite fares.

As well as baggage, seat selection fees are now commonplace even among the most premium airlines, with fees as high as $180 in Qatar Airways’ business class.

Food and beverage, priority boarding, Wi-Fi access and in-flight entertainment may also cost extra, with a handful of airlines also stinging passengers for headphones.

Travellers on Alaska Air, Hawaiian Airlines and JetBlue face fees of between $5 and $10 for the use of headphones on flights.

Jetstar advises passengers forking out $10 for in-flight entertainment at the time of booking, they “must” bring their own headphones to use the service.

Originally published as Checked baggage extra for Canada-bound Aussie travellers as fares continue to ‘unbundle’