Canadian airlines increasing checked-bag fees to boost profits

Canadian carriers have so far been offering competitive airfares to their customers. This is going to change now as two major airlines in the country have decided to boost profits by increasing checked baggage fees. These carriers include Air Canada and WestJet Airlines.

Calin Rovinescu, CEO of Air Canada, said, “The airline intends to increase profitability with all the available tools it has at its disposal. This includes various options such as additional seating charges, fee and airfares hikes.”

Rovinescu said that the airline’s ancillary revenues per passenger increased 18 percent in Q4 2014. This was because of the increased charges on the first checked bags introduced on routes in the Caribbean, Mexico and Canada in November last year. However, during the entire year 2014 the revenues increased 10 percent.

WestJet Airlines also reported that its revenues also increased 11 percent to $100 million last year.

Both the carriers had started charging a $25 fee, plus tax, for first checked bags on some of the flights in economy class during last fall. This had affected nearly 20 percent passengers.

A travel expert said that the passengers have also not even opposed the decision by these carriers. They feel that they are still being offered cheap airfares. So paying for the first checked bag shouldn’t be a cause for worry at all. In fact, the passengers have quietly accepted the increased first checked bag fee. The travel expert at the same time however cautioned that keeping quiet on first checked bag fee is not good as this will further encourage the airlines to consider adding even more fees.