Dec 4 (Reuters) - Air Canada ( ACDVF ) said on Wednesday it will

start charging for bigger carry-on bags from passengers opting

for its lowest-priced basic fare for North America routes

starting Jan. 3.

Passengers will now have to pay for larger items such as

roller-boards or duffel bags, or large backpacks under the new

terms. The carrier will charge C$35 for the first bag and C$50

for a second.

United Airlines has implemented a similar policy,

requiring basic economy passengers to pay at least $35 for

carry-on bags.

All travelers can still bring a small personal item that

fits under the seat, such as a purse or laptop bag.

Airlines have increased

checked baggage fees

for North American flights, citing rising maintenance and

labor contract costs.

Air Canada ( ACDVF ) will also charge basic fare passengers an

additional charge if they wish to change their seat from the one

assigned at check-in.

The Montreal-based flag carrier added it will increase

checked baggage allowance for customers traveling worldwide on

its comfort economy fare, with passengers now entitled to check

two complimentary bags.