As Canadian consumers come to terms with the fact that the country’s two largest airlines are raising their checked baggage fees, industry analysts warn that fees for carry-on bags are likely coming soon.
"It's only a matter of time," Fred Lazar, an airline analyst and Professor of Economics at York University told CBC News. "The initial driver will be the problems as people shift more and more to carry-on."
Air Canada (TSX: AC) and WestJet (TSX: WJA) are already struggling to manage a large influx of carry-on luggage by passengers after both airlines announced simultaneously that they have increased their checked bag fee for most economy fares from $25 to $30 for the first bag, and from $35 to $50 for the second one. The new fees can add up to $60 for one checked bag on a round trip.
Yet carry-on bags can cause delays as passengers jockey for overhead bin space. Some smaller Canadian carriers have already initiated carry-on bag fees to help combat the problem — and increase profits.
Staring in November, low cost European airline Ryanair will reduce its checked bag fee for smaller luggage and charge the equivalent of $13 for carry-on bags for passengers who haven't upgraded to priority status. In 2010, discount U.S. carrier Spirit Airlines introduced carry-on fees with the same rationale.
Canadian ultra low-cost carriers Flair Airlines and WestJet's Swoop also charge for carry-on luggage, a policy they adopted from the outset. The fee, which starts at $36.75, is higher than their checked bag charges.
