Anyone who’s booked a flight recently knows how expensive air travel has become. Deals are harder to find and many airlines have pared back perks—so when a low fare pops up in your search, it’s tempting to book on the spot. Before you click purchase, make sure you understand exactly what that price includes. The cheapest options you see are usually budget-tier fares, and although they save money up front, add-ons like checked baggage, seat selection and even a carry-on can push the final cost higher than a more inclusive fare.
What are budget airlines?
Budget airlines—also called low-cost carriers (LCCs) or ultra-low-cost carriers (ULCCs)—offer a stripped-down product. The fare typically pays only for the seat; almost everything else is extra. In Canada, Flair has been the country’s last remaining true ULCC, though the company has signalled an interest in evolving toward a more premium product. If you travel to the United States or overseas, you’ll encounter more ULCC brands such as Spirit, Frontier, Ryanair and AirAsia.
Even legacy carriers now offer ULCC-like options in their fare menus. Examples include WestJet’s UltraBasic and Air Transat’s Eco Budget. These basic fares can dramatically lower your ticket price, but they routinely omit common inclusions such as:
- Seat selection
- In-flight food and drinks
- Checked baggage
- Carry-on baggage (a small personal item is often allowed)
- Changes or free cancellations
- In-person check-in (some airlines charge if you don’t check in online)
- Loyalty-earning status or credits on certain basic fares
Depending on the trip, some or all of those exclusions may not matter. On a short hop you might tolerate a middle seat, and if you already carry trip cancellation insurance, you may be covered for last-minute cancellations. But if you expect to pay for several extras, add them up first—fees can quickly erase the initial savings. If you only need one or two add-ons, a bare-bones fare may still be the best value.
How long is the flight?
Be honest about how much comfort you’re willing to sacrifice. On shorter flights, the lack of a seat-selection option may be tolerable. Many traditional carriers allow free seat selection at online check-in (about 24 hours before departure), but many budget fares remove that option entirely or charge a premium even for early seat assignment. For example, some UltraBasic-style fares don’t include complimentary seat selection at any point, and paid seat prices can be higher than on higher fare tiers.
How much are you bringing?
Carefully check carry-on weight and size limits, especially for international travel. Some airlines enforce stricter dimensions than others—Ryanair’s carry-on limits, for instance, are a few centimetres narrower than typical Canadian carriers. If you discover at the airport that your bag is too large or you need more items than the fare allows, last-minute baggage fees are often steep and can make a supposedly cheap fare far more expensive than a higher fare that includes baggage.
Do you have flight perks through your credit card?
Some travel credit cards include free checked bags for cardholders and companions. Cards tied to airline loyalty programs—such as Aeroplan or certain co-branded airline cards—can remove the need to buy checked baggage when flying with that airline. That benefit can make a difference when comparing carriers: a fare that looks cheaper on the surface may cost more if you have to add baggage fees for every traveller, while a slightly higher fare that includes bags could be the better option if your card covers the cost.
For example, a recent search for roundtrip flights from Toronto to Cancún showed Air Canada Rouge and Flair offering different combinations of bundles and prices. Flair’s Basic Bundle that included checked luggage was cheaper than some fully refundable or more flexible fares. But if you hold a card that grants free checked baggage on Air Canada, the Air Canada fares without paid baggage could save you money once the card benefit is factored in. Always compare the total out-the-door price after accounting for card perks.
| Airline | Fare | Inclusions | Price |
|---|---|---|---|
| Air Canada Rouge | Basic | Personal item only | $924.32 |
| Standard | Personal item Carry-on luggage |
$1,020.32 | |
| Flex | Personal item Carry-on luggage Checked luggage Standard seat selection Changes/cancellations |
$1,149.32 | |
| Flair | Bare Bundle | Personal item only | $899.07 |
| Basic Bundle | Personal item Carry-on luggage Checked luggage |
$1,118.29 | |
| Big Bundle | Personal item Carry-on luggage Checked luggage Changes/cancellations |
$1,152.19 |
What’s the bundle value?
Do the math. Comparing fares requires adding the cost of likely add-ons to the baseline ticket price. For a Toronto–Cancún example, Air Transat’s fare options illustrated how a DIY approach can beat a bundled fare once you price out seat selection and baggage:
| Fare | Inclusions | Price |
|---|---|---|
| Eco Budget | Personal item only | $998.29 |
| Eco Standard | Personal item Carry-on bag |
$1,073.29 |
| Eco Flex | Personal item Carry-on luggage Checked luggage Standard seat selection Changes/cancellations |
$1,363.29 |
On that route, seat selection fees ranged roughly from $33 to $77 and a checked bag cost about $35 each way. Adding a checked bag and the priciest seat to the Eco Budget fare still left the total lower than Eco Flex by more than $100. If you don’t need a carry-on or the flexibility to change flights, building your own bundle of add-ons can be the better financial choice.
Will your travel insurance cover you if things go wrong?
Under Canadian regulations, airlines must rebook or refund passengers when flights are cancelled or significantly delayed, and when delays are within the airline’s control the carrier may owe cash compensation. Rules differ by country: U.S. carriers are not uniformly required to provide cash compensation, and some budget airlines do not provide hotel accommodation or meal vouchers for overnight delays.
The real-world impact can be significant. In one instance, a ULCC cancelled a Toronto–Las Vegas flight and did not offer hotel or meal vouchers; it took a formal complaint process to obtain compensation. In that case, the traveller’s credit card travel insurance covered immediate expenses while the regulatory claim moved through the process. Before you travel, check your credit card’s travel insurance terms and any consumer protections that apply to your route.
Make sure you’re getting the best airfare
Budget fares aren’t inherently bad—they make flying more affordable and widen travel options—but they’re not always the cheapest once you add the extras you need. Know your non-negotiables (bags, seat selection, flexibility) and read fare rules closely before booking. Compare the full cost of a bare-bones ticket plus likely add-ons to the price of bundled fares, and factor in credit card benefits and insurance coverage. That simple checklist will help you choose the fare that truly offers the best value for your trip.
Read more about travel:
- If you’re going on vacation, don’t forget travel health insurance
- Travel hacks to help you save money on your next trip
- Five inexpensive travel destinations while the Canadian dollar is weak
- Affordable family vacations: how to travel when the Canadian dollar is weak