Air Canada plans to charge travellers $25 extra to check a second bag on its Tango and Tango Plus flights throughout North America.
The extra fee will take effect on May 15, 2008 for travel on or after July 15, 2008 on the airline's economy flights.
Travellers may still check one bag at no charge and customers can also obtain a discount if travelling without checked luggage.
"In an environment of record high and unrelenting fuel costs it is more critical than ever that the airline reviews its product offering to ensure it can continue to offer everyday low fares," said Duncan Dee, the airline's chief administrative officer.
"This policy change is part of the on-going review of our activities that allow us to keep pace with current industry standards and economic realities, while remaining competitive with our main North American competitors."
The new charge will not apply to international travel, where flyers will still be able to check two bags at no additional cost.
Travellers on North American flights connecting to international destinations are also exempt from the new fee.
WestJet and Air Transat said they have no plans to charge passengers a fee to check a second bag.
In the U.S., several carriers have imposed a similar baggage charge.
Since September, fares in the U.S. have jumped by three to six per cent, with another five per cent added on this week.
If oil hits US$120 per barrel, Delta CEO Richard Anderson said airlines need to raise fares by 15 to 20 per cent to break even.
In an interview with The Canadian Press, WestJet spokesperson Richard Bartrem said "there is the potential to see increased prices this summer" if fuel prices continue to rise.
Transat spokesman Jean-Michel Laberge said the airline has no plans to increase the surcharges updated in February.
With files from The Canadian Press
