Jetstar’s New Carry-On Fee: A Shift in Australia’s Budget Airline Landscape

• by Shimanta Das
• August 6, 2026

Jetstar’s announcement that it will begin charging passengers for overhead locker space has sparked a mix of outrage and support across Australia. Starting in February, the budget airline will scrap its current 7kg carry-on allowance for economy passengers, instead requiring them to pay a fee to use the overhead lockers. This move, which aligns Jetstar with a trend seen in Europe and North America, raises questions about the future of budget air travel in Australia.

Under the new policy, economy passengers will be allowed to bring one main item that can be stowed overhead and one smaller item under the seat, but only if they pay for the privilege of using the overhead space. Jetstar’s CEO, Stephanie Tully, emphasized that from February, the main thing customers will need to consider is the size of their carry-on. However, for those with existing bookings that include two carry-on items for flights before February 2, 2027, the old allowance remains unchanged.

The reaction from Australians has been polarized. Many have expressed anger on social media, viewing the fee as an additional cost that erodes the value of budget travel. Others, however, support the change, arguing that it could streamline boarding and reduce delays. Travel agent Lynton Jones from The Savvy Traveller noted that removing the need to weigh cabin bags at the gate might make boarding less stressful, but he remained skeptical about significant time savings.

This development comes as Europe boasts more than a dozen low-cost airlines competing for passengers, while North America has several major budget carriers. Whether Australian airlines will adopt similar strategies remains to be seen. A spokesperson for Transport Minister Catherine King has urged Jetstar to prove that this change will maintain cheaper ticket prices. As the aviation industry evolves, passengers will be watching closely to see if this fee becomes a standard practice or a competitive disadvantage for Jetstar.