WestJet has recently increased its fee for the first checked bag by $5 for passengers with ultra-basic and economy fares. This marks the airline’s second hike in checked bag fees in less than two years, with Air Canada likely to follow suit. Starting from tickets purchased on or after Sept. 16, economy passengers on WestJet will now pay a minimum of $40 for prepaying their first checked bag, while those who pay at check-in will face a charge of at least $60.
For travelers on WestJet’s ultra-basic fare, the fee for prepaying a checked bag for most destinations now starts at $50. The airline has stated that WestJet Rewards members can avoid the fee increase by prepaying for bags, and passengers using a WestJet RBC Mastercard can completely bypass the charge.
WestJet explained its decision to raise the fee as an alignment with industry pricing and revenue trends. Meanwhile, Air Canada’s first checked bag fee remains at $35, but there is a possibility of a change in the future.
In February 2024, WestJet implemented a previous $5 increase in checked luggage fees, which was soon followed by Air Canada. When asked about potentially following WestJet’s fee adjustment, Air Canada provided a general response, stating their policy is to closely monitor the industry to stay competitive in all markets they serve.
The recent increase in WestJet’s bag fee is part of a series of new charges introduced by Canadian airlines, leading to concerns from consumer advocates about the difficulty in comparing prices accurately. John Gradek, a faculty lecturer at McGill University, expressed that the current airline fee structures are not consumer-friendly, emphasizing the need for transparent pricing to prevent customers from unexpectedly facing significantly higher fares.
According to Statistics Canada, airfares decreased by 7.6% in August compared to the previous year. Airlines justify unbundling fares as a way for customers to pay only for the services they want. However, Gradek argues that the initial low fares advertised by airlines can be misleading, with customers realizing the actual cost only when receiving the final bill, potentially resulting in significant additional fees.
In response to the industry trend of introducing extra fees, WestJet recently made headlines by announcing the installation of “fixed recline” seats in some of its economy cabins, requiring passengers to pay for an upgrade if they want full reclining seats. This move reflects airlines’ reliance on ancillary fees as a significant revenue source.
Gradek predicts that Canadians should prepare for more airline fees in the future, leading to further confusion among consumers. He suggests that airlines should display total prices inclusive of popular fees like baggage charges to help customers make informed decisions when booking flights online.
While airlines must provide a breakdown of optional service fees on their websites, Gradek advocates for more transparency in presenting these charges alongside advertised ticket prices. Transport Canada mentioned engaging with carriers to enhance fee transparency, with both WestJet and Air Canada affirming their transparency regarding fees and airfares.
Consumer advocate Geoff White emphasizes the need for increased competition in the airline industry to mitigate rising fees and potentially lower overall fares. The dominance of Air Canada and WestJet in Canada limits passengers’ options, leading to concerns about limited competition hindering customer service and pricing improvements.
A Competition Bureau study released in June recommended changes to enhance competition in the airline industry, including relaxing restrictions on foreign ownership of Canadian airlines. The government is currently reviewing these recommendations, while the National Airlines Council of Canada, representing both Air Canada and WestJet, has expressed skepticism about the impact of increased foreign investment or competition on reducing travel costs.
WestJet has argued that high airfares are primarily influenced by government and third-party charges such as airport improvement fees and fuel taxes, rather than airline fees.
