Jetstar announced on Wednesday that starting next year, its ticket pricing structure will change to include only one underseat bag in the base fare, with customers required to pay additional fees for overhead carry-on luggage. The new pricing model represents the latest shift in the aviation industry toward unbundling services and charging separately for amenities previously considered standard inclusions.
This move follows a broader industry trend of monetizing basic travel services. Airlines now charge for checked baggage, seat selection, meal purchases, and in some cases, the option to sit beside an empty seat. Canadian carrier WestJet introduced a recline fee, requiring passengers to pay extra for seats that recline. Consumer advocates argue these practices obscure the true cost of air travel and complicate price comparisons between carriers.
Graeme Hughes, a consumer expert at Griffith University, noted that while airlines market these changes as simplified user-pay systems keeping entry fares low, the approach makes transparent pricing difficult. Andy Kelly of advocacy group Choice characterized Jetstar’s policy as “just an easy cash grab,” pointing to existing fees for seat selection, cancellation rights, and loyalty program access that already complicate consumer decision-making.
European regulators recently took action on this issue, mandating that airlines display carry-on luggage costs in initial fare quotes to enable easier price comparisons. The European Council’s requirement came after significant pushback from carriers regarding proposals to guarantee free carry-on rights. Major European low-cost carriers including Ryanair and EasyJet already charge carry-on fees ranging from €12 to €60 depending on timing and route. In contrast, leading US carriers like Southwest and JetBlue include both personal items and larger carry-on bags in standard fares, while Frontier employs route-based pricing. Dr Ian Douglas of the University of New South Wales noted concern that Jetstar has adopted the more restrictive European model despite serving different market needs than carriers like Ryanair.
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