The $25 Carry-On: Why Jetstar Is Putting a Price on Your Luggage?

Jetstar is set to charge passengers at least $25.00 for extra carry-on luggage from February 2027 after ending its seven-kilogram allowance for luggage.Instead, the airline will now allow for handbags, laptop bags, and small backpacks within the dimensions: 40 x 30 x 20 centimetres.Any proper seven-kilogram luggage allowance will need to be purchased beforehand, or risk an excess baggage fee.It’s a model implemented by European low-cost carrier, Ryanair, and the American Frontier Airlines.In response, analysts explain what it means for customers amid a broader shift by Jetstar to remain Australia’s cheapest airline.‘Unbundling’ Services to Lower FaresAdelaide University Professor of Aviation Shane Zhang said European low-cost airlines have used the paid carry-on model for some time.It is part of an industry practice known as “unbundling” which, in this case, means passengers literally pay only for their seat and fork out extra for other services.“Strategically, it further differentiates Jetstar’s product from Virgin Australia’s, and could make Jetstar particularly attractive to passengers who have little luggage and are willing to trade inclusions for a lower base fare,” Zhang told The Epoch Times.“I would expect other airlines to watch this closely, particularly if consumers respond positively.“The bigger question is whether airlines can enforce these rules efficiently at the boarding gate without creating delays or operational difficulties.”Zhang said airlines would also need to be mindful of the safety aspect and ensure bags intended to go under seats did not become a pathway obstruction.He also argued that low base fares could obscure the true cost of flying once baggage is added, making comparisons between airlines more difficult.As for Australia’s broader aviation market, Zhang says that, in the mid-term, it could mean less competition overall, as Qantas, Virgin, and Jetstar develop “distinct operating models and target customer segments.”“This gives each airline considerable scope to decide how it wants to structure its products and which services it wants to unbundle.”The opening of the Western Sydney Airport has ushered in several potential competitors—some established, others in very early concept stages—including Bonza, Koala Airlines, Zinc, and VietJet.Could Customers Just Move to Virgin?Financial analyst Shane Shmuel said there was a risk to the “unbundling” approach for Jetstar—customers could simply shift to Virgin Australia if they need luggage.“Personally, a colleague of mine flying Jetstar paid more than my Virgin Australia airfare because he was slightly over the seven-kilogram limit whereas I didn’t experience any problems on the same day,” Shmuel told The Epoch Times.He also said it was a new revenue channel for Jetstar, while also letting them compete on cheaper fares.Another potential benefit could be a more streamlined boarding process at the gate and within the plane.“Anyone who has boarded a crowded flight late knows the familiar struggle-the overhead bins are already full, forcing passengers to search for space or have their bags taken at the gate,” he said.Jetstar Adjusting to Inflation Struggles?Graham Young, executive director of the Australian Institute of Progress, said there was another layer to Jetstar’s manoeuvre—the cost of living crisis.Some companies, he says, believe they can maintain sales by reducing the headline cost of products.“Whether this actually works depends how passengers view it,” Young told The Epoch Times.“If they think it is just a marketing ‘sleight of hand’ then they may well be less inclined to buy.”Young noted the move also marked a pivot by Jetstar back to its original marketing proposition.“It has echoes of Laker Airways in the UK and Jetstar’s original birth as no-frills airline,” he said.Laker Airways set the template for stripped-back budget travel when it emerged in the 1970s, before folding in 1982.“Laker is out of business, but Jetstar has sort of crept up the inclusive ladder and looks like it’s creeping down again,” Young said.Customers Find Luggage Issue Most Stressful: JetstarJetstar says the move comes after research showing customer and crew pointed to bag-weighing and finding overhead locker space as the most stressful part of flying.“By giving customers an underseat bag with the option to add priority carry-on, we can make better use of overhead locker space, streamline boarding and help more flights depart on time,” Jetstar CEO Stephanie Tully said.“Our new carry-on baggage model provides more choice to customers while helping to keep our fares low. You only pay for what you need—travelling with less means paying less, and you can always add more if you need.”Customers with medical equipment or travelling with an extra bag for an infant will be able to do so at no extra cost.Priority carry-on starts at $25.00 for shorter flights, such as Launceston to Sydney, while the Cairns to Tokyo route will incur a $52.00 carry-on fee.Customers can still purchase up to 40 kilograms of checked baggage per passenger.