Here’s the good news: Airfares have declined in Canada. The bad news? You might wind up paying more in added fees.
WestJet and several U.S. airlines recently hiked their checked-bag charges. Discount carrier Flair Airlines has raised some other fees, and added a surcharge when customers pay for their flight with a credit card.
Airlines often say they “unbundle” fares so customers only have to pay for the add-ons they want.
“We keep our fares as low as possible while giving you the flexibility to add additional services,” Flair declares on its website.
But some industry experts warn that if passengers aren’t careful, they may wind up paying far more than anticipated.
Airlines “absolutely entice you with the low cost of the ticket … but then that low price is not as low as it appears with the ancillary fees,” said Karl Moore, an associate professor at McGill University who studies the industry.
Passengers might “get caught with another $100 in fees they weren’t expecting, which means profits for the airlines,” he said.
McGill University’s Karl Moore says air passengers might wind up paying more than they bargained for when booking flights with added fees. (CBC)
According to Statistics Canada, airfares dropped 14.3 per cent in 2023. Conversely, in the previous year, airfares spiked by 13.7 per cent.
As airfares declined, WestJet introduced two checked-bag price hikes. The airline now charges an extra $5 for checked luggage for travel booked after Feb. 14. That means, for an economy fare purchased online, passengers will pay between $35 and $42 for the first checked bag and between $55 and $65 for the second.
The higher fees may irk passengers already struggling with other rising costs, such as food and housing.
“It’s just a clear cash grab,” said Taryn Zielke of Regina who flies WestJet a couple of times a year.
Customer Taryn Zielke of Regina, left, questions why WestJet needs to raise checked-bag fees. (Submitted by Taryn Zielke)
“Did you have to raise the baggage fees by $5? Like, could you have not done that?” she said. “Probably not. But they did, because they could.”
WestJet spokesperson Julia Brunet told CBC News in an email that baggage fees allow the airline to “keep base fares lower for all travellers.”
She said the system-wide $5 hike is WestJet’s first since 2018, and that passengers can avoid baggage charges by paying for their flight with a WestJet RBC Mastercard, or by buying a pricier, flexible fare.
Will Air Canada hike baggage fees?
Several airlines in the United States have also hiked their baggage fees, including American Airlines and Alaska Airlines which upped their first checked-bag charge from $30 to $35 US. American did not provide a reason.
Alaska Airlines said in an email it needed to adjust its fees to “navigate rising operating costs – including high fuel prices.”
“I would not be surprised if they did. It’s very, very tempting to them indeed,” he said.
In an email to CBC News, Air Canada spokesperson Peter Fitzpatrick would only say the airline is “aware of these trends” and has made no recent changes to its baggage policies.
WATCH | Lynx Air ceases operations:
Lynx Air to cease operations Monday, but some passengers already stranded
3 days ago
Duration 1:50
Low-cost airline Lynx Air says it will cease operations as of Monday, but travellers are already being impacted as some flights have been cancelled. It is the latest discount airline that has been unable to stay in business in Canada.
Flair Airlines also recently raised some fees. Through an internet archive search, CBC News discovered that sometime after June 8, the airline increased the charge to book or change a flight over the phone from $15 to $25.
The airline also upped its flight change and cancellation fees. For example, the price to change a flight a week or more before departure has jumped 155 per cent to $74 from $29.
Flair also added a processing fee of 1.4 to 2.0 per cent when passengers pay by credit card. The airline did not respond to requests for comment.
Ottawa-based travel blogger, Anshul Singh worries that with all the added fees, it will be difficult for travellers to compare airfares and get the best deal. (Submitted by Anshul Singh)
Anshul Singh, founder of travel and loyalty-program website Points, Miles and Bling, says he applauds the airlines for being upfront about their fees, which are clearly laid out on their websites.
“Unbundled pricing models bring a lot of flexibility and predictability for passengers that know exactly what they’re looking for,” he said.
However, says Singh, the plethora of added charges makes it hard for passengers to shop around and ensure they’re getting the best deal.
“Often, those add-on fees are not readily available up front, especially when you’re comparing pricing,” he said. “I think it’s quite unfair to expect the customers to sort of keep a handle on all of these fee changes and make sure that they’re doing their price comparisons in a rational way.”
Moore said the best way for passengers to ensure they’re getting the best deal is to avoid paying for upgrades. So he recommends packing your own food, and travelling only with a carry-on bag. However, if you’re flying a discount airline such as Flair, you will be charged for any carry-on that can’t fit under the seat.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
