From February 2 2027, passengers on Jetstar will only be able to bring one small bag that fits under the seat for free. Anyone wanting to store a bag in the overhead locker will need to pay an additional fee , with prices varying by route.
Authors
- Cindy Lee
Senior Lecturer in Tourism and Hospitality, Torrens University Australia
- Anita Manfreda
Associate Professor, Blue Mountains International Hotel Management School, Torrens University Australia
The airline says the change will provide "more choice" while helping keep base fares low. It also reduces the need to weigh as many carry-on bags at the gate and improve boarding efficiency. Passengers who pay for the overhead baggage option will receive priority boarding.
While the policy is presented as offering greater flexibility, it also raises a less obvious question: does giving travellers more choices necessarily improve the travel experience?
More choice isn't always better
Jetstar's CEO, Stephanie Tully, said the new carry-on baggage model means passengers will " only pay for what you need ", presenting the paid option as giving consumers more choice.
But psychology research suggests that more decisions can also create more mental effort .
Booking a flight now involves deciding whether to pay for checked baggage, seat selection, overhead cabin space, and other optional extras, each carrying a financial cost. As these choices accumulate, passengers may experience what psychologists describe as " choice overload " - when having more options makes decisions harder rather than easier.
The travel experience begins during the planning and booking process , not when passengers board the aircraft. Additional purchasing decisions can therefore shape perceptions of the journey even before the trip begins.
If increased choice adds new burdens, those trade-offs may be easier to justify if the policy delivers real operational improvements. Whether it will do so, however, remains to be seen.
Will the policy achieve what it promises?
Jetstar says the new policy should reduce the need to weigh bags at the gate, and will improve boarding efficiency.
Priority boarding, however, works when only a proportion of passengers receive it. If large numbers choose to pay for overhead baggage, priority boarding risks becoming less meaningful - while competition for locker space remains.
Passengers may still spend time searching for available locker space, rearranging luggage and competing for overhead storage. This could offset any operational efficiencies the airline hopes to achieve.
From the passenger's perspective, the burden has not disappeared. It has changed form, but now comes with an additional financial cost.
A strict size limit for the underseat bag has also been introduced. However, this may require travellers to buy smaller bags that comply with the dimensions, adding another expense to the trip.
It also raises practical questions about value for money. While passengers will get an increased weight allowance of up to 10 kilograms per item , the reduced cabin bag size means many bags may simply not have enough capacity to hold that weight. In practice, travellers could pay for a higher weight allowance without being able to fully use it.
Jetstar claims the change will help keep fares "low". However, the airline has not indicated base fares will fall as a result of this new policy.
A spokesperson for Transport Minister Catherine King said Jetstar would need to demonstrate the change will in fact keep fares affordable, adding:
it will be up to them to demonstrate that to passengers.
What does this mean for passengers?
Charging separately for overhead cabin baggage is not new.
It is standard practice among many low-cost airlines in Europe and North America, but the Australian market differs in two important respects.
First, consumers have fewer low-cost airlines to choose from . Second, European passengers benefit from stronger passenger rights , with rules governing airline obligations, delays, cancellations and pricing transparency.
In Australia, the federal government has proposed an independent Aviation Consumer Ombuds Scheme to resolve passenger complaints. It was expected to begin operations in 2026, but the legislation is still before Parliament and the scheme is not yet operational.
Consumer rights stuck in a holding pattern
For now, an interim ombudsperson has been appointed within the Department of Infrastructure and Transport. However, the role has limited functions and cannot formally investigate or resolve complaints between consumers and airlines.
In practice, little has changed for passengers. As the first step, consumers must still complain directly to the airline .
If the matter remains unresolved, passengers can escalate their complaint to the Airline Customer Advocate. However, the advocate is funded by the airline industry and cannot issue legally binding decisions.
Alternatively, passengers can pursue broader consumer issues through state consumer protection agencies or the Australian Competition and Consumer Commission .
Whether travellers continue to choose the low-cost model or decide full-service airlines offer better value may depend not only on price, but also on how many trade-offs they are willing to accept before they fly.
The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
