Australian budget airline Jetstar will begin charging passengers for storing carry-on bags in overhead compartments starting February 2027, making it the first carrier in the region to monetize what's been a standard feature of air travel. The fee structure starts at 25 Australian dollars, or $18, one way, with prices varying by route.
Passengers will still be allowed to bring one small item—a purse, laptop bag, or small backpack that fits specified dimensions—under the seat in front of them at no charge. But anything requiring overhead storage now comes with a price tag. The airline's justifying the policy as a response to passenger complaints about gate weigh-ins and locker scarcity, though critics note it's another revenue stream extracted from travelers who've already seen fees pile up for checked luggage, seat selection, meals, and entertainment.
Who Bears the Cost
The new system removes the existing 7-kilogram weight limit for items stored under seats, while bags placed in overhead lockers can weigh up to 10 kilograms, or 22 pounds. Jetstar says it won't weigh bags at the gate anymore, eliminating one point of friction. But the trade-off is clear: what was once included now requires payment.
Jetstar CEO Stephanie Tully framed the change as customer-focused. "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," she said in a statement. She added that the move would ensure customers only paid for what they needed.
That rationale doesn't sit well with everyone. Sharon Petersen, CEO of AirlineRatings.com, an industry analyst, predicted backlash. "It will ruffle feathers because Australian travelers have got such high expectations," she said, noting that Australians "for such a long time lived in a bubble of full-service options only."
The Competitive Context
Jetstar joins budget carriers in the United States and Europe that commonly charge for overhead bin access, but Petersen pointed out a crucial difference. "Jetstar's starting price is generally well above what Ryanair or Wizz Air can offer, largely because Australia lacks that level of competition and because wages, taxes and operating costs sit much higher here," she said.
That gap matters. European ultra-low-cost carriers have built business models around rock-bottom base fares with extensive add-ons. Australian travelers, by contrast, face higher baseline prices and now the same fee structure—without the competitive pressure that might drive those base fares down.
Like carriers worldwide, Australian and New Zealand airlines have already introduced charges for checked luggage, seat selection, and some dining and in-flight entertainment options. Petersen said Jetstar was the first in the region to charge specifically for overhead locker use, marking another step in the steady erosion of included services.
Why This Matters:
This policy shift reflects how airline deregulation and market consolidation have transferred costs directly onto passengers, particularly those with fewer options. In markets without robust competition, travelers can't easily vote with their wallets when fees multiply. The overhead bin charge effectively creates a two-tier system: those who can afford the add-on and those forced to cram essentials under the seat. For families, business travelers managing tight connections, or anyone needing more than a laptop bag, these fees add up quickly. The policy also highlights how corporate efficiency gains—streamlined boarding, reduced gate conflicts—get marketed as customer benefits while the financial burden shifts downward. Without stronger consumer protections or competitive alternatives, passengers have little recourse as airlines unbundle services that were once standard, turning air travel into an increasingly expensive à la carte experience.