Will Jetstar’s plan to charge for overhead locker space work in Asia-Pacific?

Analysts say the move, an ‘extreme’ form of unbundling, risks backlash and added fare complexity

Jetstar’s plan to charge passengers for overhead locker space is set to test how far budget airlines in the Asia-Pacific region can go in making travellers pay separately for what was once part of a basic fare.

The Australian carrier’s move comes as rising costs and competition push airlines to find new revenue beyond the ticket price, potentially giving regional rivals cover to study similar fees.

Aviation analysts described the plan by Qantas’ low-cost arm as an “extreme” form of unbundling – charging separately for services once included in the ticket price – but said similar fees might be harder to introduce in other Asia-Pacific markets.

From February next year, Jetstar’s flight bookings will include one underseat bag at no extra cost but a larger one stored in the overhead compartment could cost from A$25 to A$52 (US$17.60 to US$36.60) per flight.

“The move will see Jetstar shift from a strict weight limit to a simpler, size-based carry-on baggage model, similar to other leading low-fares carriers around the world,” the airline said in a statement on Wednesday.

Jetstar’s chief executive Stephanie Tully said the new model would help streamline boarding, make better use of overhead locker space and help more flights depart on time.