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MONTREAL — Air Canada said Tuesday higher revenues from bag and other fees are part of the airline’s drive to permanently raise profits even after fuel prices rise.

“Low fuel prices are a welcome tailwind, but history has shown how fickle oil pricing can be, so we remain intensely focused on the execution of the strategy that has brought us this far,” CEO Calin Rovinescu said Tuesday.

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The country’s largest carrier earned a record $122 million in profits excluding one-time costs in the first quarter, thanks in part to a 25 per cent decrease in fuel costs for the same quarter the year before.

Air Canada said non-fare revenues per passenger increased 15 per cent in the first three months of the year, led by higher contributions from checked baggage, cancellation fees, seat selection, preferred seating and various upgrades.

Rovinescu’s comments come a week after WestJet Airlines also posted a quarterly record in net income due to falling fuel prices and higher fees.