Air Canada To Erase Second-Bag Fee As Fuel Price Ebbs

Air Canada today said it would eliminate its $25 second baggage charge "in response to decreasing fuel prices." The carrier implemented the charge in May for travel beginning July 15 amid steadily rising fuel costs, but reversed course today with plans to stop collecting the fee Sept. 23.

When Air Canada announced the second-bag charge in April, light sweet crude oil traded on the New York Mercantile Exchange at around $117. The cost per barrel this week hovered below $100.

The carrier today also said it would begin incorporating fuel surcharges into base fares for North American flights. The carrier said those surcharges range between $20 and $60 on intra-Canada and transborder U.S. flights.

"Although the cost of fuel remains highly volatile and far above historic norms, the recent retreat in oil prices is enabling us to reinstate our previous baggage policy," Air Canada executive vice president and chief commercial officer Ben Smith said in a statement today.

Air Canada on Oct. 14 also plans to "simplify" its excess baggage policy. The carrier said it plans to charge $75 for overweight and/or oversize luggage for travel within North America, and $100 for international travel. The carrier previously would levy a $100 charge for excess baggage on North American flights, and could charge several excess-baggage fees on the same bag. For example, the $100 baggage fee previously was counted twice for an oversize and overweight bag.

In the new policy Air Canada notes, "If a bag is both overweight and oversized, the fee is charged only once." Air Canada said bags more than 50 pounds are overweight and bags more than 63 inches in length are oversize.