WestJet has quietly increased the 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 Sept. 16, economy passengers buying WestJet tickets will now have to pay at least $40 to prepay for their first checked bag. Those who opt to pay at check-in will face a minimum charge of $60.
For passengers traveling on WestJet’s ultra-basic fare, the cost to prepay for a checked bag for most destinations is at least $50. The airline mentioned that WestJet Rewards members can avoid the fee hike by prepaying for bags, and those using a WestJet RBC Mastercard can bypass the charge entirely.
In an email to CBC, WestJet stated that the fee increase was implemented to align with industry pricing and revenue trends. While Air Canada currently starts its first checked bag fee at $35, there is potential for a change in the future.
Last February, WestJet introduced a previous $5 hike for checked luggage, with Air Canada following suit less than a month later. When asked if Air Canada plans to mirror WestJet’s recent increase, spokesperson Peter Fitzpatrick provided a general response, stating that the airline closely monitors the industry to stay competitive in all markets served.
WestJet’s adjustment in bag fees is part of several new charges introduced by Canadian airlines, raising concerns among consumer advocates about the potential for customers to face unexpected higher fares. According to John Gradek, a faculty lecturer at McGill University, the current system lacks consumer-friendliness and could lead to customers paying significantly more than anticipated due to the array of added fees.
Statistics Canada reported a 7.6% drop in airfares in August compared to the previous year. Airlines defend their practice of unbundling fares, arguing that it allows customers to pay only for the services they desire. However, Gradek believes airlines entice customers with low fares, only revealing the actual trip cost at the final bill stage, potentially resulting in families paying substantial sums in extra fees.
In a revenue-driven industry operating on narrow profit margins, airlines increasingly rely on additional fees for revenue. In 2024, major airlines globally generated over $148 billion US in total fees, setting a new record, as reported by IdeaWorksCompany. Gradek foresees more airline fees on the horizon, emphasizing the need for greater transparency in displaying total airfare costs online to aid consumer decision-making.
Transport Canada expressed its commitment to enhancing fee transparency in collaboration with carriers. Both WestJet and Air Canada maintain that they are upfront with customers about all fees and fares, ensuring clarity in pricing for optional services.
To address rising fees, consumer advocate Geoff White advocates for increased competition in the airline industry to potentially lower overall fares. With Air Canada and WestJet dominating the Canadian market and often mirroring each other’s fees, passengers face limited choices. White highlights the importance of competition in driving better customer service and pricing.
A recent Competition Bureau study recommended changes to boost competition in the airline sector, including relaxing restrictions on foreign ownership of Canadian airlines. The government is currently reviewing these suggestions. The National Airlines Council of Canada, representing Air Canada and WestJet, contests that increasing foreign investment or competition may not alleviate concerns about travel cost reduction.
WestJet argues that high airfares are primarily driven by government and third-party charges, such as airport fees and fuel taxes, rather than airline fees.
