“I knew it,” says John Gradek on the line. A little over a week ago, the coordinator of the aviation management program at McGill University predicted Soleil that Air Canada was going to price cabin baggage by the summer season.
It didn’t take long for the air carrier to announce the end of free flights. As of January 3, 2025, travelers — who purchase a basic economy class ticket to North America or sunny countries — will have to pay to bring a suitcase or large bag on board the plane.
Mr. Gradek estimates that approximately 90% of Canadian passengers carry carry-on baggage when traveling, even with checked baggage. It’s a way for them to have spare linens in case the airline loses the suitcases, which happens too often.
For those wondering, Air Canada passengers who have purchased a basic economy fare for a transpacific or transatlantic flight with a connection in Montreal, for example, will be able to continue to bring one standard bag and one personal bag in the cabin.
But that’s not all. The country’s largest air carrier will also charge for changing seats automatically assigned at check-in. The amount will be determined according to the location of the new place.
“They’re going to give you the last seats at the back of the plane, in the middle row. There will be other seats available on the window edge or in the aisle, but if you want them, you will have to pay,” says Mr. Gradek.
This new regulation will come into force on January 21, 2025, regardless of the date of purchase of your ticket. Air Canada will still assign adjacent seats to customers on the same reservation.
A la carte instead of table d’hôte
These new additional pricing from Air Canada are a reminder of what low-cost airlines are already doing.
John Gradek also compares this business model to an à la carte restaurant: you take a seat at the table and you choose what you want on the menu, with the price attached to it.
“Do you want some soup? Billed. Do you want an appetizer? Bill. Well, do you want a carry-on bag? Bill. Do you want to change seats? Bill. And if you need other things, all you have to do is take out the credit card,” says the man who was already an executive at Air Canada.
But, previously, the air carrier operated more with a model similar to the table d’hôte: you pay a more expensive price, but everything is included, even the suitcase in the hold. This is no longer the case since 2014, with the introduction of baggage fees.
Fewer services, same price
By continuing the low-cost airline model, can we expect a price reduction from Air Canada?
“You’re not serious,” replies the lecturer at McGill with a laugh.
According to him, Air Canada would lower its prices for only two reasons: if other carriers decide to have a small price battle on the domestic market or if there is a pressing need to fill a plane.
“But it’s certainly not because of the additional costs. Air Canada has not announced any price reduction to compensate for the new prices.”
-— John Gradek, coordinator of the aviation management program at McGill University
WestJet, for its part, reduced the amount of its tickets with the entry into force of the new UltraBase fare in June, which also prevents passengers from traveling with carry-on baggage, indicates John Gradek.
Still expensive to travel from Canada
All Canadian airlines have adopted the low-cost model, popularized in particular by Ryanair in Europe and Southwest Airlines in the United States.
“Canadian airlines are trying to generate additional revenue like Ryanair, but they can’t offer good prices because of the environment in which they operate,” says Mr. Gradek.
The various Canadian airlines must cover a huge territory for a very small market. The volume of air passengers in Canada in 2023 was 150 million while there were more than 1 billion in Europe. This reality may help explain the higher price of plane tickets in the country.
While you can easily find flights for less than $100 on the Old Continent, it’s practically mission impossible in Canada. And the new rates on carry-on baggage could simply further discourage travelers from flying across the country, believes the former Air Canada executive.
As an example, I did a little comparison exercise (not at all scientific) for fun and to demonstrate that it is not cheap to fly here.
We note that flying with Flair Airlines to Mexico is very inexpensive. Unfortunately, the Edmonton carrier will make its last flight to Quebec in April 2025. High airport fees and low demand in Montreal are forcing it to concentrate its activities in the west of the country.
Flair Airlines may one day return to our province. On the other hand, until then, Quebec loses the only real low-cost airline player. We will then have to make do with other carriers, which are more reliable, but more expensive. Although WestJet offers cheap tickets depending on the route chosen.
Air Canada stirs passions, not others
After Air Canada’s announcement, the federal Minister of Transport publicly said she was “disappointed” with the carrier’s new pricing measures. Anita Anand added that it was a harmful decision for Canadian families.
“What bothers me is that the concept of cabin baggage pricing is not new. Other airlines in Canada have been doing it for some time, but no one has said anything,” said John Gradek.
“Suddenly, Air Canada decides to do the same thing and all of a sudden, it’s disaster. There are questions to ask,” he adds.
Minister Anand is expected to meet with the bosses of the country’s largest airline players in mid-December to take stock of the situation and discuss possible next steps.
