Canadian Airlines Hit Passengers with Higher Baggage Fees as Middle East Conflict Drives Fuel Costs Sky-High

It’s about to cost more to check your bags the next time you fly with a Canadian carrier and the turbulence in the skies above the airline industry shows no sign of letting up.

WestJet announced this week that it will raise its baggage fees starting Thursday, citing what it described as “current global conditions.” The Calgary-based airline is adding $5 to the first and second checked bags when booked in advance, and a steeper $10 hike for passengers who wait until airport check-in. For those travelling with oversized, overweight, or excess luggage, the hit is even harder fees jump by $50. WestJet Teal Rewards members will still receive a $5 discount on the first prepaid bag, offering some cushion for loyal customers.

The announcement follows a near-identical move by Air Canada last week, which quietly raised the price of the first checked bag from $35 to $45 for basic economy passengers on domestic, U.S., and sun destination routes. Taken together, the back-to-back fee increases signal just how much pressure Canadian carriers are now under.

At the root of the crisis is the ongoing war between the United States, Israel, and Iran, which erupted in late February and has since ignited a broader conflict across the Middle East. In retaliation for military strikes, Iran has effectively shut the Strait of Hormuz a narrow but critical waterway through which roughly one-fifth of the world’s daily oil supply passes. That’s approximately 20 million barrels a day that have been squeezed out of global markets, sending jet fuel prices soaring.

The consequences are rippling well beyond Canada. Germany’s Lufthansa announced Tuesday it will cancel around 20,000 short-haul flights across Europe as aviation fuel costs become untenable. Montreal-based Air Transat said it plans to cut approximately six percent of its scheduled flights between May and October. Sunwing Vacations and Vacances WestJet Québec have introduced a $50-per-person fuel surcharge. And Air Canada last week said it would suspend six routes altogether, including the high-profile Toronto–JFK and Montreal–JFK connections, effective June 1 through October 25.

The numbers make clear why airlines are scrambling. Fuel is the single largest operating expense for most carriers Air Canada alone spent over $5.1 billion on it in 2024, representing nearly a quarter of its total operating costs. When the price of that input spikes dramatically, every other line item comes under pressure almost immediately.

Not every airline is retreating, however. Porter Airlines confirmed to Global News that it has no current plans to reduce its flight capacity, bucking the industry-wide trend at least for now.

For travellers, the message is straightforward: pack light, book early, and brace for more changes. With no clear resolution to the conflict in sight, the airline industry is likely to keep adjusting its fees and routes as the full financial weight of the crisis continues to land.