Two things happened in quick succession that changed the pricing landscape for Canadian travellers. First, the Iran war began in early 2026, sending jet fuel prices surging from $2.24 to $4.51 per gallon almost overnight — a 28% increase in fuel costs since March alone. Airlines that were already operating on thin margins had to find ways to cover the shortfall, and baggage fees are one of the fastest levers they can pull.
Second, and just as significant, Spirit Airlines shut down permanently on May 2, 2026. For years, Spirit's presence in the North American market kept every other airline honest on price. Economists called it the "Spirit Effect" — when Spirit entered a route, fares would drop by 30 to 40 percent as competitors scrambled to match their ultra-low pricing. With Spirit gone, that competitive pressure has evaporated. Studies show that average fares jump roughly 23% — about $60 on a round trip — when a budget airline exits a route. Bag fees follow the same pattern.
The result for Canadian travellers is a perfect storm: higher fuel costs pushing fees up, and less competition to push them back down.
Air Canada raised checked baggage fees for passengers on Economy Basic, Standard, and Flex fares purchased on or after April 13, 2026. If you booked before that date, your original fee applies. If you booked after, here is what you are now paying.
| Bag | Old Fee | New Fee (April 13+) | Increase |
|---|---|---|---|
| 1st Checked Bag | $35 – $42 | $45 – $54 | +$10 – $12 |
| 2nd Checked Bag | $50 – $60 | $60 – $72 | +$10 – $12 |
Passengers on Air Canada's higher fare classes — Comfort, Latitude, and Business — continue to receive free checked bags as part of their ticket. The fee increases apply specifically to the lower economy fare tiers, which are the most commonly purchased fares for budget-conscious travellers.
WestJet followed Air Canada's lead, announcing its own baggage fee increase effective April 23, 2026. WestJet cited "industry trends and impacts from current global conditions" — a reference to surging fuel costs — as the reason for the hike.
WestJet uses three economy fare tiers, which you may see labelled differently depending on where you book — Expedia and other booking platforms sometimes display them in slightly different formats, but they are the same products:
| WestJet Fare | Carry-On | 1st Checked Bag (Online) | 1st Checked Bag (Airport) |
|---|---|---|---|
| Ultrabasic | Not included | ~CA $80 | Up to CA $93 |
| Econo | Included | ~CA $70 | Higher at airport |
| Econoflex | Included | 1st bag included (50 lbs) | 1st bag included |
| Business | Included | 2 bags FREE (up to 50 lbs each) | 2 bags FREE |
The key thing to notice: the gap between what you pay online vs. at the airport is significant. On an Ultrabasic fare, booking your bag in advance can save you CA $13 or more compared to paying at the check-in counter. Always add your bag at the time of booking.
| When You Pay | Increase Per Bag |
|---|---|
| Paid in advance (online) | +$5 CAD per bag |
| Paid at the airport | +$10 CAD per bag |
| Overweight or oversized bag | New $50 CAD surcharge |
The increases hit hardest for WestJet's Ultrabasic fare passengers. On domestic Canadian flights, a single checked bag on an Ultrabasic fare can now cost up to $93 CAD at the airport — though travellers who book online in advance will typically see fees around CA $80. A second bag can run up to $111 CAD. That is a significant jump and one that many travellers will not see coming if they assume WestJet is still the budget-friendly option they remember.
| Airline | 1st Bag (Advance) | 1st Bag (Airport) | Effective Date |
|---|---|---|---|
| Air Canada (Economy Basic) | $45 – $54 | $54+ | April 13, 2026 |
| WestJet (Ultrabasic) | ~$80 CAD (online advance) | Up to $93 CAD | April 23, 2026 |
| Air Transat | Varies by fare class | Higher at airport | Ongoing |
The consistent message across all Canadian carriers is the same: pay as early as possible, and avoid paying at the airport. The gap between booking online and paying at the counter has never been wider.
You might wonder why an American ultra-low-cost carrier's collapse matters to Canadian travellers. The answer is that Spirit was not just flying routes within the U.S. — it was setting a price ceiling for the entire North American air travel market.
Millions of Canadians, particularly those in Southern Ontario, Quebec, and British Columbia, regularly drive across the border to fly out of U.S. airports like Buffalo, Plattsburgh, and Bellingham. These airports offered Spirit's rock-bottom fares that often undercut anything available from Canadian carriers. With Spirit gone, those options have disappeared, and the competitive pressure its existence created on Air Canada and WestJet has gone with it.
Both carriers have also announced capacity reductions of 5 to 7 percent in response to the fuel cost surge. Fewer seats on fewer flights, combined with higher fees, means Canadian travellers have less choice and are paying more for it.
Always pay for bags at booking. The gap between online and airport pricing has grown to $10 or more per bag on both Air Canada and WestJet. Never wait until the airport.
Compare the full fare, not just the base price. A Flex or Plus fare that includes a free bag often costs less than Basic plus a bag fee. Run the full numbers before booking.
Use a travel credit card with bag benefits. Several Canadian credit cards include free checked bags on Air Canada or WestJet as a cardholder perk. One bag each way can save $90 to $108 on a round trip.
Pack into your carry-on. Both Air Canada and WestJet still include a standard carry-on on most fare classes. Pack cubes and compression bags can make a surprising difference.
Watch the weight. WestJet's new $50 oversized surcharge is a costly surprise. Weigh your bag at home before heading to the airport and stay comfortably under the 23 kg (50 lb) limit.
Consider shipping your bags ahead. For longer trips, baggage shipping services like Luggage Forward or Send My Bag can sometimes beat airline bag fees, especially when you factor in convenience and overweight risks.
The short answer is: almost certainly, unless fuel prices drop significantly or a new low-cost competitor enters the Canadian market to shake things up.
Jet fuel remains the single largest operating cost for any airline, and with prices still elevated from the Iran war disruption, carriers have little incentive to absorb those costs themselves when they can pass them on through fees. Baggage revenue is also one of the most reliable income streams in aviation — passengers pay it because they have no choice once they are already at the airport.
The good news is that Frontier Airlines and other U.S. ultra-low-cost carriers are eyeing expansion into markets Spirit previously served. If any of them grow their Canadian cross-border offering, that competitive pressure could return. But in the near term, 2026 is shaping up to be the most expensive year for baggage in recent memory.
Baggage fees in Canada are at their highest point in years, and the combination of soaring fuel costs and reduced competition means relief is not coming soon. Air Canada and WestJet have both moved quickly to pass their cost increases on to passengers, and with Spirit Airlines no longer around to keep pricing pressure alive, there is little incentive to reverse course.
The best thing Canadian travellers can do right now is get smart about how and when they pay. Know your fare class, pay for bags at booking, compare the full price of every ticket before you click purchase, and make the most of any credit card or loyalty benefits you already have.
Flying is getting more expensive in 2026. But knowing the rules means you do not have to pay more than you need to.