Air Canada eliminates second bag fee, folds fuel surcharges into advertised fares

September 18, 2008

In response to decreasing fuel prices Air Canada is eliminating all second checked-bag charges implemented this spring and incorporating fuel surcharges into its advertised base fares on North American 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. We are eliminating the second checked bag charge on North American Tango and Tango Plus fares, reflecting our customers’ expressed preferences.

'Further, Air Canada is making its pricing more transparent by removing add-on fuel surcharges for flights within North America and instead adjusting its base fares to cover the total cost of fuel,' said Ben Smith, executive vice president and chief commercial officer.

'These initiatives are made possible by the recent relief from all-time high oil prices and even though fares will remain dynamic, Air Canada is committed to everyday low prices and will continue to match the lowest fares in the marketplace.'

With the measures Air Canada will:

• Eliminate starting Sept. 23, the $25 fee for second checked bags that was introduced May 15 for Tango and Tango Plus fares within North America.
• Incorporate into its advertised prices the one-way, add-on fuel surcharge that currently ranges between $20 and $60 on domestic and U.S. transborder flights. Air Canada has adjusted its published fares to include the total cost of fuel in its advertised base fares.
• Starting Oct. 14, simplify its excess baggage fees by introducing a single $75 fee for travel within North America ($100 international) for overweight and/or oversize pieces. This new policy replaces the standard industry practice of imposing individual fees for each situation. For bags exceeding the free allowance, the excess piece fee will now include any applicable overweight or oversize fees. A 10% discount on excess piece fees is offered when fees are paid while checking-in online at aircanada.com or at an airport self service kiosk.

Air Canada said it will continue to review its policies to determine what adjustments are to be made so that, against a backdrop of high and volatile fuel prices, it continues to provide the products and services that respond to customer demand.

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