Canadian airline CEOs are facing scrutiny this month after Air Canada announced it would no longer include free carry-on bags with its cheapest economy fares. Transport Minister Anita Anand expressed strong dissatisfaction with the policy, signaling upcoming discussions to address what she called “excess fees.”
“Let’s just say I’m not very happy today with what I’ve heard from Air Canada,” Anand stated. “They need to consider the people affected by these charges. It’s not acceptable.”
Starting January 3, passengers with Air Canada’s basic economy fares will pay $35 for the first carry-on bag and $50 for a second. Additionally, changes to seat selections at check-in will incur fees.
Air Canada defended the move, calling it a “competitive response” to similar policies already implemented by WestJet for UltraBasic fares. The airline described the charges as a commercial decision driven by industry standards.
However, Anand criticised the timing, citing financial pressures on Canadians. “This is not acceptable at a time when Canadians are struggling and saving for travel,” she said in a television interview.
The federal government holds leverage over Air Canada through pandemic-era loans tied to equity agreements, potentially giving it influence over such policies.
Airline bosses are expected to meet with Anand later this month to discuss the issue as public backlash grows over rising fees in the travel industry.
