Baggage fees are getting out of hand.
Airlines are shaking down passengers for cash, a U.S. senator said last week. It’s an accurate comment that pertains not only to U.S. airlines, but global carriers–especially after yet another airline has announced plans to charge customers for carry-ons. Canada’s flag carrier, Air Canada, is stripping customers of some complimentary services starting January 3, 2025.
A carry-on will no longer be included in the basic fare, and passengers will only be allowed to bring one personal item on board for free when traveling within the country or crossing over to the U.S., Mexico, Central America, and the Caribbean. This does not apply to premier members of loyalty programs such as Aeroplan Elite Status Members, Star Alliance Gold, and Aeroplan Premium Credit Cardholders.
In addition, basic economy travelers will no longer be able to change their seats for free at check-in starting January 21, 2025. The airline said it will seat families together. There is good news for comfort fare travelers—they will be able to check in two bags starting January 3, 2025.
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It’s a disappointing sign that Air Canada is charging extra for “perks” that used to be free–mimicking the business models of budget airlines that are known for no-frills fares. It’s especially troubling as it follows an announcement from WestJet, the country’s second-largest airline, that introduced a bare-bones flight ticket this summer that provides only entry to the airplane; passengers must pay for everything else.
These so-called “junk fees” have become a topic of conversation in the U.S. after the Biden administration hit back at airlines for extorting money from customers. Spain has also fined five European airlines for abusive practices, including charging extra for baggage and seat selection.
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What’s With These Fees?
In the U.S., airlines made $7 billion through baggage fees alone last year.
Aviation executives stand by their ultra-basic low-cost model that uses “unbundled fares,” which requires people to pay for all services, including priority boarding, seat selection, carry-ons, checked baggage, and meals and drinks on flights. Low-cost airlines frame it as giving people a choice about what they want to pay for and democratizing travel so it’s cheap and accessible.
President Joe Biden is not a fan, and his administration has been going after “junk fees.” The U.S. government argues that customers have no recourse and pay extra for everything. During a hearing of the Senate Permanent Subcommittee on Investigations last week, Senator Richard Blumenthal said that customers are being shaken down by airlines like piggy banks. Blumenthal, who played a video of a Frontier agent not allowing a passenger to board due to the size of their bag, said, “The frustration in that passenger’s voice is felt every day by countless passengers arriving at the gate with basically no choice. Their flight is leaving in minutes. They have no appeal.”
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Earlier this month, Frontier Airlines CEO Barry Biffle called people who try to sneak bags onto the plane “shoplifters.” The airline boss, who makes more than $8 million a year, said it wasn’t equitable for everyone else who follows the rules.
The low-cost airline is no-frills. It offers some of the cheapest fares, but watch out for everything else—it charges for every single service, including carry-ons, seat changes, food, and priority boarding. You can only bring a personal item (a laptop bag, a purse, or a diaper bag) when you fly with Frontier, and that’s subject to inspection. The airline pays gate agents $10 for each bag a customer has to check in at the gate—the last-minute hiccup can cost a passenger as much as $99. In fact, the airline made 65% of its $3.5 billion in revenue through ancillary fees last year.
In June, United CEO Scott Kirby hit back at low-cost airlines. According to him, they are going out of business due to their bad business model and poor services. He said they don’t treat customers right, referring to a particular Frontier incident when a passenger was asked to check in a carry-on for $99.
Frontier had a long list of complaints from customers in 2023, and Spirit Airlines, which recently declared bankruptcy, was the second-worst. As a matter of fact, airlines in the U.S. are also not a top choice for world travelers. Delta was ranked 21st, and United was 42nd in the 2024 World Airlines Awards.
