‘Just an easy cash grab’: why Jetstar is charging customers for carry-on luggage

Jetstar, Australia's budget airline, has announced a new policy that will see passengers charged for carrying-on luggage starting next year, marking a significant shift in how the company structures its pricing model. The move comes amid growing criticism that airlines are increasingly relying on ancillary fees to boost revenue rather than offering transparent, all-inclusive fares. Under the new rules, only one "under seat bag", such as a backpack, handbag, or laptop bag, will be included in ticket prices, while any additional carry-on items will incur extra charges. The decision follows a broader trend among airlines globally to introduce more fees for services previously considered standard. Jetstar joins a list of carriers that have shifted toward a "user-pay" model, where base fares remain low but additional costs are layered onto the booking process. This includes charges for checked baggage, preferred seating, meal options, and even the ability to cancel flights. In some cases, airlines have gone so far as to allow passengers to pay for the privilege of sitting next to an empty seat, effectively monetizing unused capacity. Consumer advocates have criticized the move, arguing that it makes it harder for travelers to accurately compare prices across different airlines. Graeme Hughes, a consumer expert and adjunct associate professor at Griffith University, noted that the new policy allows Jetstar to advertise the lowest possible fare upfront while hiding additional costs until later stages of the booking process. "Travellers can't easily do an apple-for-apple comparison with other airfares," he said, highlighting concerns about transparency and fairness. Andy Kelly, campaigns director at the Australian consumer advocacy group Choice, described the policy as "just an easy cash grab." He pointed out that existing fees for things like seat selection, cancellation rights, and loyalty program memberships already add up significantly. "They just make it really hard for consumers to make an assessment of value and also to compare different products," Kelly said. The issue has drawn attention beyond Australia, particularly in Europe, where regulators have pushed for greater transparency in airline pricing. Recently, the European Union mandated that airlines must include carry-on luggage fees in initial fare displays, making it easier for consumers to compare prices. This came after airlines resisted earlier proposals to allow free carry-on bags alongside under-seat items. Jetstar cited this regulatory environment as part of its rationale for adopting a size-based carry-on baggage model, claiming it aligns with practices used by low-fare carriers worldwide. Jetstar emphasized that the new policy would help keep fares low by allowing passengers to pay only for what they need. However, critics argue that the airline is simply following the lead of international competitors, many of whom already impose fees for carry-on luggage. Dr. Ian Douglas, an honorary senior lecturer at the University of New South Wales' School of Aviation, noted that nearly every low-cost carrier in Europe, including Ryanair and EasyJet, charges for carry-on bags. He expressed disappointment that Jetstar had adopted a model akin to Ryanair's despite being positioned as a complementary service within the Qantas network. According to Guardian Australia analysis, the cost of carrying an overhead bag on an overseas Jetstar flight could exceed $100, depending on the route. For domestic flights, the fees are lower but still represent an added expense for travelers who wish to bring more than a single under-seat bag. Jetstar has indicated that the exact fees may vary based on flight duration and has acknowledged that future adjustments could occur. As the airline moves forward with its new policy, the focus remains on whether it will achieve its stated goal of keeping fares low while managing customer expectations. With increasing scrutiny on airline pricing models, the response from both regulators and consumers will play a crucial role in shaping the industry's direction.