MONTREAL/CHICAGO (Reuters) -The CEO of Air Canada will address a Canadian parliamentary committee on Friday about carry-on baggage fees, according to a meeting notice, after Canada's largest carrier this month announced new charges for some passengers.
Lawmakers in both Canada and the United States have criticized airlines in recent weeks for levying additional fees on luggage and seat assignments, following an outpouring of anger by passengers on social media.
Analysts say ancillary revenue earned from charges like baggage fees has become the mainstay of the airline business worldwide. Ancillary revenue is estimated to jump 26% year-on-year to $148.4 billion in 2024, accounting for about 15% of airline revenue across the globe, according to a report by travel consultancies CarTrawler and IdeaWorksCompany.
Air Canada Chief Executive Mike Rousseau will speak by videoconference, joining other airline executives, after the carrier said last week it would charge passengers for bigger carry-on bags if they opted for its lowest-priced fare for North American and Caribbean routes starting on Jan. 3.
Alexis von Hoensbroech, CEO of WestJet Airlines, which has a similar policy, will also address the Standing Committee on Transport, Infrastructure and Communities, according to a meeting notice. Charges will also be discussed during a Friday meeting between Transport Minister Anita Anand and Canadian airline executives.
Air Canada said the changes would bring its basic fare structure in line with the "industry standard." Those passengers can board with one small personal item like a purse, but require larger items like a duffel bag to be checked for C$35 ($24.78).
Earlier this month, a bipartisan group of U.S. senators called out rising airline fees following testimony by executives from American Airlines, United Airlines, Delta Air Lines, Spirit Airlines and Frontier. "Airlines these days view their customers as little more than walking piggy banks to be shaken down for every possible dime," Senator Richard Blumenthal, a Democrat who chairs the Permanent Subcommittee on Investigations, said at the hearing.
A Senate subcommittee report last month found that U.S. airlines have generated billions of dollars in revenue from ancillary fees by charging customers extra for seat assignments and luggage. The report disclosed that American, United, Delta, Spirit and Frontier collectively earned $12.4 billion in revenue from seat fees between 2018 and 2023. While United charges its lowest-paying travelers $35 for a bag, both American and Delta currently do not charge basic economy passengers for a carry-on bag.