Air Canada to charge for first checked bag, following WestJet

Air Canada stated that it will start to charge passengers $25 for their first checked luggage, following the steps of their rival WestJet several days later.
Starting September 18, 2014, customers purchasing Air Canada’s lowest Economy Class Tango fare for travel on or after November 2, 2014 on domestic flights within Canada and to and from the Caribbean and Mexico will now be charged $25 for a first checked bag, in line with the baggage allowance policies of other North American carriers.
This change is expected to affect an estimated one in five Air Canada passengers on domestic flights within Canada, representing approximately 5 per cent of the airline’s customers system-wide, Air Canada said.
The U.S. fee for first checked luggage is still the same since 2011.
WestJet said on Monday its $25 fee would apply to about 20 per cent of the airline’s 18.5 million customers a year, beginning with flights booked Sept. 14 for travel as of Oct. 29. Baggage fees generated $3.35-billion (U.S.) for U.S. airlines last year.
The move sparked a flurry of upgrades for WestJet stock amid expectations of higher earnings. Air Canada stock also spiked, in anticipation of similar measures. Air Canada said at the time it was evaluating the WestJet announcement.