Air Canada Reverses Fees On Fuel Drop, United Can't

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Air Canada has announced it will roll back some previously imposed fees. It is nice for an airline actually repeal something it claimed to impose due to high fuel costs. Air Canada announced last week it would stop charging the $25 second bag fee it established in May. It also announced fuel surcharges would be rolled into the fare. Excess bag fees would be simplified to $75 per piece for oversized or overweight, or $100 per extra bag.

We appreciate the rolling of fuel surcharges into the fare. Since, in theory, the fare is supposed to cover all costs of travel, the idea of a charge imposed separate from that due to fuel seems inappropriate, and is only a way of making the advertised fare look lower on certain displays.

Low-cost competitor Westjet took the opportunity to announce they were eliminating a fuel surcharge entirely, emphasizing their core values of “caring, straight talk, trust and best value.”

Meanwhile, United Airlines raised its second bag for to $50 due to its claim of high oil prices. The truth is that it is indeed true. Oil prices are high…for them. If oil prices linger on or below $100 a barrel, they will lose up to $294 million dollars. United hedged at around $111 per barrel this year and $118 for next year. United will thus be paying more for fuel than market rate.

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