Air Canada has announced plans to make its basic economy fares more restrictive as of 2025, and it will have major implications for passengers.
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Air Canada basic fares lose carry-ons, seat changes
Air Canada’s basic fares will have two new restrictions as of 2025. These changes apply specifically to flights within North America, as well as to flights to sun destinations, which include the Caribbean, Mexico, and Central America.
First of all, for tickets purchased as of January 3, 2025, these fares will no longer include a full size carry-on bag. Instead, passengers on these fares will only be able to bring a small personal item onboard at no extra cost.
Larger items will have to be checked before security, at the cost of $35 for the first bag and $50 for the second bag. Passengers arriving at the boarding gate with an ineligible carry-on item will be required to check the bag for a $65 fee.
Second of all, as of January 21, 2025, passenger traveling on basic fares will no longer be able to switch their seats from the one that’s automatically assigned to them at check-in.
Under the current policy, basic economy passengers are assigned a seat at check-in, but can then switch the seat at no cost. The new policy will require passengers to pay extra if they want a different seat than what they’re assigned.
The good news is that Aeroplan status members, Star Alliance Gold members, and Aeroplan premium credit card members, will be exempt from these policies, and will continue to be allowed to take a carry-on bag and select a seat.
Air Canada’s motivation for this policy change
Air Canada’s motivation for this policy fare is pretty simple — airlines offer basic fares and make them punitive with the goal of getting people to buy-up to a higher fare bundle. Airlines want to be able to market low fares, but also obviously want to get as much revenue from each passenger as possible.
Maybe someone sees a good Air Canada fare through an online travel agency, decides they want to book, but then determines that it makes sense to pay extra to avoid punitive restrictions. At least that’s the consumer psychology behind these fares.
But why is Air Canada making this change now, nearly seven years after having introduced basic fares? It kind of makes sense competitively:
- WestJet recently made its basic economy fares more restrictive, even rebranding them as UltraBasic; they no longer include carry-on bags, or the ability to assign a seat of choice at check-in
- Porter is growing at a fast pace with its Embraer E195-E2s, and the carrier’s basic fares also don’t include carry-ons, or the option of selecting a seat
Obviously Air Canada wants to be able to compete with its two biggest rivals in Canada. For that matter, Air Canada has a transborder joint venture with United, and United is the only one of the “big three” US carriers to not allow carry-ons with basic economy fares.
Competitively, I can see why Air Canada is making this change. Obviously this isn’t good for those who frequently book basic economy fares. Meanwhile I see some elite members happy about this change, in hopes that it will lead to more open overhead bin space, and speedier boarding. 
Bottom line
As of early 2025, Air Canada is making basic fares more restrictive. The airline will no longer allow carry-on bags on these fares, and also won’t allow passengers to switch seats from the one they’re assigned at check-in without paying a fee. However, elite members and premium credit card members are excluded.
Air Canada simply seems to be catching up with the competition, as WestJet and Porter have the same policies, and joint venture partner United also has the same restrictions.
What do you make of Air Canada adding restrictions to its basic fares?
The new carry-on restriction for Basic Economy is an excellent move on the part of Air Canada, and will align the carrier not only with its domestic competitors, but also with alliance partner United Airlines.
It is the last fraction of the overhead bin scrounge that delays flights, so this change should have a tangibly positive effect on orderly and timely departures on ACA flights going forward.
Aligning Basic Economy to Porter /WestJet / United is fine and dandy, but AC's standard economy fares is not competitive vs. UA and other US airlines. AC's standard economy fares charges for seat selection, and does NOT have free changes, cancel for travel credit. If UA/DL/AA/B6 can offer free seat selection and free change/cancel on their standard coach fare, why can't Air Canada??
That is an excellent point - one that most (even the best travel bloggers) tend to overlook.
I've also thought it strange that most bloggers including Ben overlook this point. Not being able to select free seats ($30-$45 CAD for a regular coach seat :( ) even in standard coach fare or be able to change/cancel for credit is a huge disadvantage vs. US airlines. Recently, I booked EWR-YYC, YYZ-EWR, and LGA-YYZ tickets on AC metal thru United.com as a codeshare. Same fare, but booking thru United I'm able to get free...
I've also thought it strange that most bloggers including Ben overlook this point. Not being able to select free seats ($30-$45 CAD for a regular coach seat :( ) even in standard coach fare or be able to change/cancel for credit is a huge disadvantage vs. US airlines. Recently, I booked EWR-YYC, YYZ-EWR, and LGA-YYZ tickets on AC metal thru United.com as a codeshare. Same fare, but booking thru United I'm able to get free changes/cancellations. Really stupid on AC's part to not align fare rules with United.
Far from a shock from one of the worst airlines in the world. The government has protected them far too long, and they've become far too greedy.
I can't recall the last thing Air Canada did right...genuinely.
I like the fact Air Canada serves free wine in economy on US routes. Thumbs up from me.
Then you would like Porter even better, they serve free wine in economy on intra-Canada flights (except short sectors and night flights).
True, Air Canada is certainly not an airline that woes customers with their service, but they run with the (North American) pack and are prodded by what the competition can get away with.
I find the inflight part, again by North american standards, not too bad, but it is the ground part that shows how disgruntled and/or overworked their ground staff seems to be.
The race to the bottom continues…
B.
If AC was truly competitive from a consumer's point of view, they'd leave well enough alone & market these features as unique, compared to its competitors.
These companies operate in virtual lock-step, monkey-see-monkey do and I don't even view them as truly 'competing' with one another in various aspects.
But, then again, they aren't charities and their supreme obligation (above God & country) is to their share holders & board of directors, exclusively....
If AC was truly competitive from a consumer's point of view, they'd leave well enough alone & market these features as unique, compared to its competitors.
These companies operate in virtual lock-step, monkey-see-monkey do and I don't even view them as truly 'competing' with one another in various aspects.
But, then again, they aren't charities and their supreme obligation (above God & country) is to their share holders & board of directors, exclusively....
PS-Maybe this decision was a result of a survey/feedback from their 'most valued' Basic Economy pax !
But UA BE crossing US-Can allows carryon.
I wish all the fare aggregation websites like Kayak and Google Flights would do better at allowing non-basic economy searches. You search for what looks like a good price, then you find out it’s likely to be a middle seat next to the lavatory, with an extra $80 fee if you want to bring some clothes with you. I’d rather search for the lowest price for a regular economy seat, and I wish all the seat-swap beggars could make that search too.
Couldn't agree more. They are failing us.
You can on google flights. There's a drop down menu for carry on baggage. If you choose one bag, it will eliminate basic economy fares that don't include a full size carry on.
oh good maybe now more than 50% of the planes will be on time... lol.. who are we kidding... garbage airline
Nuts. Once again, taking away what used to be just normal courtesy to the flying public, such as one or two check-in bags, 1 carryon and a personal item. I realize the cost of everything has gone up in the past 30-40 years, but to be punitive to the point of punishing the pax because he or she might want a different seat in the SAME CLASS OF SERVICE at time of check-in is ridiculous....
Nuts. Once again, taking away what used to be just normal courtesy to the flying public, such as one or two check-in bags, 1 carryon and a personal item. I realize the cost of everything has gone up in the past 30-40 years, but to be punitive to the point of punishing the pax because he or she might want a different seat in the SAME CLASS OF SERVICE at time of check-in is ridiculous. I have no need to fly Canadian Airways, but even if I did, I'd find another airline. However, what this does is SET THE PRECEDENT for ALL OTHER AIRLINES to follow suit. Thanks for punishing EVERYONE because of greed. For sure you lost a possible customer and I'll tell 10 others to not fly Canadian Airways. Maybe if everyone did that (as possibly feasible), you'd lose money. Making money hand over fist and STILL GREEDY! Horrendous. No thanks!
I thought United's joint venture with Air Canada was only as part of the transatlantic JV with Lufthansa/Swiss/Brussels/Austrian and specifically not cross-border US-Canada? Has that changed?