Jetstar to Become First Australasian Airline to Charge for Overhead Baggage Bins

Jetstar will begin charging passengers up to $37 to store carry-on luggage in overhead compartments starting in February 2027, making the Qantas Airways Ltd. subsidiary the first carrier in Australia and New Zealand to unbundle overhead locker access from base fares.

Under the overhauled baggage policy, passengers on one-way flights will pay between $18 and $37 for a “Priority Carry-on” option that grants overhead bin access alongside early boarding privileges. The fee tier increases the maximum weight limit for overhead bags from 15 pounds to 22 pounds and eliminates routine manual weighing by gate agents before departure. Travelers who do not purchase the add-on will remain permitted to carry a smaller personal item—such as a handbag, laptop bag, or backpack adhering to specific dimensions—to store beneath the seat in front of them at no extra charge.

Jetstar presented the operational shift as an effort to reduce delays and friction during the boarding process, pointing to customer and crew feedback regarding overhead bin space availability and gate baggage weighing. “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 Chief Executive Officer Stephanie Tully said in a statement. Tully emphasized the financial flexibility of the policy: “You only pay for what you need — traveling with less means paying less, and you can always add more if you need,” she said.

The announcement triggered immediate political criticism in Canberra, sharpening focus on airline pricing structures and transparency for travelers. Australian opposition Sen. Bridget McKenzie condemned the decision on social media, describing the fees as a “cash grab.” Federal Transport Minister Catherine King emphasized that airlines must maintain clear fee disclosures during ticket purchasing so passengers do not encounter unexpected expenses 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.

Unbundling overhead carry-on fees is a widespread commercial strategy among ultra-low-cost carriers in North America and Europe, where operators such as Ryanair, Wizz Air, Spirit Airlines, and Frontier Airlines routinely charge extra for overhead storage. Ancillary revenues generated from baggage fees, seat selection, priority boarding, and in-flight services constitute a critical share of operating margins for budget carriers globally. While carriers across Australia and New Zealand already charge for checked baggage, advance seat assignment, and onboard food or entertainment, Jetstar’s decision represents the first time a regional carrier has extended charges to cabin overhead compartments.