Australian budget airline Jetstar is set to shake up regional air travel with a groundbreaking policy change that will charge passengers for using overhead cabin compartments for carry-on luggage, a first for the Australian aviation market. Scheduled to take effect in February 2027, the new rule brings Jetstar into line with low-cost carriers across the United States and Europe that have long adopted similar fee structures for cabin storage.
The policy shift was born from widespread customer and staff feedback identifying overcrowded overhead lockers and gate-side bag weight checks as among the most stressful parts of the air travel experience, the airline confirmed in an official statement released Wednesday. Under the new framework, passengers will still be able to bring one small personal item — such as a purse, laptop sleeve, or compact backpack — that fits under the seat in front of them at no extra cost. This small underseat item will also see its existing 7-kilogram weight limit eliminated entirely to simplify boarding procedures.
For travelers opting to use an overhead compartment, one-way fees will start at 25 Australian dollars, equal to roughly 18 U.S. dollars, with final pricing adjusted based on the length and route of the flight. Bags stored in overhead lockers will have a maximum weight limit of 10 kilograms, and gate-side weight checks for carry-on items will be scrapped entirely under the new system, cutting down on boarding delays and crowding at departure gates.
Jetstar Chief Executive Officer Stephanie Tully explained that the restructuring is designed to address longstanding passenger frustrations during the boarding process while improving operational efficiency. “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,” Tully said, adding that the model lets passengers pay only for the extra services they choose to use.
Like many airlines globally, Australian and New Zealand carriers have spent years unbundling ticket costs, introducing separate fees for checked luggage, seat selection, in-flight dining, and entertainment. But industry analysts note that Jetstar’s new overhead locker fee is an unprecedented move in the Australian market, one that is already expected to draw pushback from local travelers.
Sharon Petersen, CEO of aviation industry watchdog AirlineRatings.com, noted that the change will likely ruffle widespread criticism because Australian passengers have long held higher expectations for inclusive air travel. “For such a long time they lived in a bubble of full-service options only,” Petersen explained. She also pointed out that Jetstar’s base fares remain significantly higher than those of European low-cost carriers such as Ryanair and Wizz Air that already charge for overhead locker access. This gap, she said, stems from Australia’s less competitive aviation market, as well as far higher operating costs for wages, taxes, and infrastructure that drive up baseline ticket prices across the country.