Jetstar, a budget Australian airline, will start charging passengers for storing carry-on luggage in overhead compartments beginning February 2027, with fees ranging from A$25 to A$52 ($18 to $37 USD) based on the route. Passengers are allowed to bring smaller bags under their seats free of charge. The policy aims to reduce stress at boarding, addressing issues related to bag sizes and limited overhead space. Jetstar's CEO emphasized that this new 'Priority Carry-on' option provides flexibility for customers, allowing them to pay only for what they need. This aligns with trends among budget airlines globally, which increasingly charge for various services, including baggage and seating.

FOX Business Flash top headlines for August 5

Check out what's clicking on FoxBusiness.com.

Budget Australian airline Jetstar will begin charging passengers for storing carry-on bags in the overhead compartments as part of an overhaul of the airline's cabin baggage policy.

The new policy will take effect in February 2027, costing travelers between A$25 and A$52 ($18 and $37 USD), depending on the route, to stow large bags on a one-way flight.

Bags stowed in the compartments can weigh up to 22 pounds and will no longer be weighed by airline staff before boarding, removing the current 15-pound limit. This pre-purchase "Priority Carry-on" option also includes early boarding access.

Passengers will still be allowed to stow smaller bags such as a purse, laptop bag or backpack that falls within specified measurements under the seat in front of them at no charge.

AIRBUS JET COMPLETES 24-HOUR FLIGHT IN PUSH FOR WORLD'S LONGEST COMMERCIAL ROUTE

Overhead compartment

Budget Australian airline Jetstar will begin charging passengers for storing carry-on bags in the overhead compartments. (Jan Woitas/picture alliance via Getty Images / Getty Images)

Fees for baggage, excess luggage, seat selection and priority boarding make up a growing share of revenue for budget airlines. The charges have sparked criticism from some consumer groups, arguing that advertised base fares do not reflect the true cost of travel.

Jetstar's policy shift comes after passengers and airline staff described having bags weighed at the gate and struggling to find room in overhead lockers as one of the most stressful parts of the airport experience, the company said in a statement.

The airline said the change would cut down on frustrations at boarding gates.

"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 in a statement, adding that the change would ensure customers only paid for what they needed.

Jetstar Airbus A320

The new policy will start in February 2027, costing travelers between $18 and $37, depending on the route. (Getty Images / Getty Images)

"You only pay for what you need — traveling with less means paying less, and you can always add more if you need," she said.

It is now the latest low-cost carrier to introduce a payment requirement for carry-on bags, as budget airlines in the U.S. and Europe often charge passengers to use the overhead compartments.

Just like other carriers around the world, Australian and New Zealand airlines already charge for checked luggage, seat selection and some dining and in-flight entertainment options, but Jetstar's latest announcement makes it the first to charge for overhead compartments.

RYANAIR PASSENGER RECOUNTS BEING PARTLY SUCKED OUT AIRPLANE WINDOW: 'I AM LUCKY'

Seagulls stand on a wall overlooking the Sydney Airport as a Jetstar Airbus A320 takes off

The airline said the change would cut down on frustrations at boarding gates. (REUTERS/Hollie Adams / Reuters Photos)

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Australian opposition Sen. Bridget McKenzie said on social media that the new changes amounted to a "cash grab."

Federal Transport Minister Catherine King said airlines should disclose any additional charges to passengers when they purchase their tickets to avoid any "surprises" at the airport.

"Jetstar claim this change is to keep fares affordable. It will be up to them to demonstrate that to passengers," King said in a statement.

Reuters contributed to this report.

a5728063363743744.cdn.optimizely.com

a5728063363743744.cdn.optimizely.com is blocked

This page has been blocked by an extension

Try disabling your extensions.

ERR_BLOCKED_BY_CLIENT

Reload

This page has been blocked by an extension

Fox Business: Futures

XD Channel

Fox News

Read Original at Fox Business →

Budget airline Jetstar to charge passengers for storing bags in overhead compartments

Recommended Videos

FOX Business Flash top headlines for August 5

a5728063363743744.cdn.optimizely.com is blocked