WestJet has silently increased its fee for the first checked bag by $5 for ultra-basic and economy fares. This marks the airline’s second hike in less than two years, and there is speculation that Air Canada may soon follow suit. For WestJet tickets bought on or after September 16, passengers in the economy class will now pay a starting fee of $40 for prepaying their first checked bag. Those who opt to pay at check-in will face a minimum charge of $60.
Travelers with WestJet’s most affordable fare, ultra-basic, will need to allocate at least $50 for prepaying a checked bag on most routes. The airline notes that WestJet Rewards members can avoid the fee increase by prepaying for bags, while those using a WestJet RBC Mastercard can completely bypass the charge.
WestJet stated in an email to CBC that the fee adjustment was made to align with industry pricing trends and revenue patterns. While Air Canada’s initial checked bag fee remains at $35, there is a possibility of it being revised soon. In a similar move in February 2024, WestJet implemented a previous $5 increase in checked bag fees, with Air Canada following suit less than a month later.
When asked about potentially mirroring WestJet’s actions, Air Canada’s spokesperson, Peter Fitzpatrick, provided a non-specific response, mentioning their strategy of closely monitoring the market to stay competitive in all regions they serve.
The adjustment in WestJet’s bag fee comes amid a series of new charges introduced by Canadian airlines, raising concerns among consumer advocates about the transparency of pricing. John Gradek, a supply networks and aviation management lecturer at McGill University, criticized the industry for creating an environment where customers may end up paying significantly more than anticipated due to hidden fees.
According to Statistics Canada, airfares dropped by 7.6% in August compared to the previous year. Airlines defend their practice of “unbundling” fares as a way for customers to pay only for the services they choose. However, Gradek argues that airlines attract customers with low advertised fares, only revealing the actual cost at the end of the booking process, potentially leading to substantial additional expenses for travelers.
In a bid to diversify revenue streams, airlines are increasingly relying on extra fees. In 2024, global airlines amassed over $148 billion US in total fees, setting a new industry record, according to IdeaWorksCompany, a U.S.-based airline revenue research firm. Gradek anticipates more fees to be introduced by Canadian airlines, widening the gap between base fares and the actual cost incurred by passengers.
To provide clarity to consumers during online booking, Gradek suggests displaying the total price including popular fees like baggage charges upfront. While current regulations mandate airlines to outline optional service fees on their websites, these charges are not required to be prominently displayed alongside advertised ticket prices.
Transport Canada emphasized its commitment to enhancing fee transparency in communication with CBC News. Both WestJet and Air Canada maintain that they are transparent in disclosing all fees and airfare details to customers.
Consumer advocate Geoff White proposes fostering more competition in the airline industry as a means to alleviate the burden of rising fees on passengers and potentially lower overall fares. The lack of competition between dominant carriers like Air Canada and WestJet limits passenger choices, forcing consumers to accept increasing fees without alternatives.
A recent Competition Bureau study recommended measures to enhance competition in the airline sector, including relaxing regulations restricting foreign ownership of Canadian airlines. The government is currently reviewing these suggestions, as highlighted by Innovation, Science and Economic Development Canada. However, the National Airlines Council of Canada, representing major carriers, doubts that increasing foreign investment or competition would effectively address concerns about travel cost reduction.
In response to the ongoing debate, WestJet argues that high airfares are primarily driven by government-imposed charges and third-party fees such as airport improvements and fuel taxes, rather than airline-specific fees.