Lower Fuel Cost Spurs Air Canada To Drop $25 Second Checked Bag Fee

September 18, 2008 12:24 p.m. EST

Montreal, Quebec (AHN) - Air Canada will remove the $25 second checked bag fee it imposed on passengers May 15 as its response to the decrease in fuel prices.

The air carrier, Canada's largest, also announced on Thursday it will include fuel surcharges on airfares when it advertises its North American flights, instead of adding the fuel levy on top of the published price.

The additional fuel surcharge ranges from $20 to $60 one way for domestic and U.S. transborder trips.

Air Canada executive vice president Ben Smith, in a statement, said, "Although the cost of fuel remains highly volatile and far above historic norms, the recent retreat in oil prices is enabling us to reinstate our previous baggage policy."