Are budget airfares worth it?

Anyone who’s booked a trip recently knows how expensive flying has become. Deals are getting harder to find and airlines are cutting back on even the most basic perks—so when a great fare pops up in your Google Flights search, it’s tempting to pack your bags.

But make sure you know what you’re getting. The cheapest fares you see in searches are typically budget tier. And while budget flights can be a great way to save, you could end up paying more than planned through add-ons like checked baggage, seat selection, and even a carry-on.

What are budget airlines?

Budget airlines—also called low-cost carriers (LCCs) and ultra-low-cost carriers (ULCCs)—are bare-bones airlines. You’re paying for a seat to get you from point A to B and little else.

In Canada, our last remaining true ULCC is Flair, although the company is looking to change its business model to a more “premium product.” But if you’re travelling south of the border or overseas, you’ll see a lot more ULCC options, including Spirit, Frontier, Ryanair, and Air Asia.

That said, all of Canada’s carriers have added ULCC-like options to their bookings, like WestJet’s UltraBasic and Air Transat’s Eco Budget. These fares can drastically bring down the costs of your next vacation, but keep in mind what’s often not included:

• Seat selection
• In-flight food and drinks
• Checked baggage
• Carry-on baggage (although a personal item is often allowed)
• Changes or cancellations
• In-person check-in (for example, Flair charges $34 if you don’t check in online)
• Loyalty rewards (Air Canada’s Basic fare doesn’t earn Status Qualifying Credits and WestJet’s UltraBasic doesn’t earn WestJet Rewards)

Depending on your travel plans, some (or all) of these extras might not matter. On a short flight, for example, you might not care about ending up in the middle seat. And if you already have trip cancellation insurance, you may be covered if a family emergency prevents you from flying.

This is where a bit of math helps. If you’re likely to pay for several add-ons, the total cost could exceed the price of a higher fare that bundles those features. On the other hand, if you only need one or two extras, the lowest base fare may still be the better deal.

Here’s what to consider before you book.

How long is the flight?

While it may be tempting to go with the cheapest ticket, be honest about how much comfort you’re willing to sacrifice.

Most traditional airlines charge to pre-book a seat but allow you to select one for free when online check-in opens, typically 24 hours before departure. Many budget airfares eliminate that option. For example, WestJet’s UltraBasic doesn’t include complimentary seat selection at check-in—and if you do choose to pay for a seat, the fee is higher than it is for the other fare tiers.

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How much are you bringing?

If you’re choosing a fare that only allows carry-on, check the permitted weight and dimensions—especially if you’re travelling overseas. Ryanair’s carry-on limits, for example, are three centimetres narrower than those of Canadian airlines.

If you realize the night before that you need to pack more or that your bag exceeds the size limit, you’ll likely end up paying significantly more in last-minute baggage fees than you would have by booking the next fare tier up in the first place.

Do you have flight perks through your credit card?

Credit cards like the TD Aeroplan Visa and WestJet RBC World Elite Mastercard include free checked bags for you and up to eight companions. That could help you decide which airline to choose.

For example, I searched for direct flights from Toronto to Cancún for March Break with Air Canada Rouge and Flair. Both were roundtrip Monday–Monday flights (because bumping your flight by just one day can help you drastically reduce your flight cost). Flair’s Basic Bundle, which includes checked luggage, was $1,118.29. To include checked baggage on Rouge, you need the Flex fare at $1,149.32.

At first glance, Flair is the cheapest option. But if you have an Aeroplan credit card that includes checked bags, you could go for Rouge’s Basic ($924.32) or Standard ($1,020.32) fare and save $98–$194 per person.

What’s the bundle value?

It may feel like a hassle, but pulling out the calculator can pay off when you’re comparing the true cost of booking a bare-bones fare vs. a bundled option.

For that same Toronto-Cancún trip, Air Transat listed these prices:

Eco Flex might seem like the obvious choice if you know you’ll be checking a bag. But pricing out the add-ons tells a different story. For this route, seat selection ranged from $33 to $77, and a checked bag cost $35 each way. 

Adding a checked bag and the most expensive seat to the Eco Budget fare brings the total to $1,222.29—$140 less than Eco Flex. If you don’t need a carry-on and aren’t concerned about making changes, a DIY bundle could be the better deal.

Will your travel insurance cover you if things go wrong?

Under Canadian law, airlines are required to rebook or refund you if your flight is cancelled or significantly delayed. And if the reason for the delay is within the airline’s control (such as overbooking, staffing shortage, or scheduled maintenance), the airline also owes you cash compensation, ranging from $125 to $1,000.

But not all destinations have the same rules. U.S. airlines aren’t required to offer cash compensation, and some budget airlines, like Frontier, won’t put you up in a hotel if you’re delayed overnight.

A few years ago, I was left stranded for three days with no hotel or food vouchers when an ULCC cancelled my Toronto–Las Vegas flight without reason. It took a year for my claim to be processed with the Canadian Transportation Agency, but thankfully my credit card’s travel insurance jumped in within a few weeks and covered my lost expenses.

Make sure you’re getting the best airfare

Budget airfares aren’t bad. In fact, they can be a great way to see the world while being gentler on your budget. Flying has become incredibly expensive, and these discount airlines and basic airfares open the skies to more travellers. Just know your non-negotiables and check the fine print of any fare tier before you book.

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
• 5 inexpensive travel destinations while the Canadian dollar is weak
• Affordable family vacations

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