Qantas Group CEO Vanessa Hudson has declined to disclose how much additional revenue the company expects to earn from Jetstar’s forthcoming overhead cabin baggage charge.
The question arose during the media briefing accompanying Qantas Group’s full-year financial results on Thursday, 27 August 2026, according to a news.com.au report.
Jetstar announced on 5 August that it would introduce a new carry-on baggage model for Jetstar Airways-operated flights departing from 2 February 2027.
Under the policy, every booking will include one underseat bag measuring no more than 40 by 30 by 20 centimetres. Customers who want to bring a second, larger bag for an overhead locker must purchase Priority Carry-on or select a fare bundle that includes it.
Priority Carry-on starts at $25 one-way on selected flights. Prices published at the launch ranged from $25 between Launceston and Sydney to $52 between Cairns and Tokyo Narita. These were introductory examples, and actual prices may vary.
Customers who purchase Priority Carry-on will be among the first to board, after Business Class travellers. Jetstar warns, however, that it cannot always guarantee priority boarding because of operational requirements.
Before 2 February 2027, a standard Jetstar Starter fare includes two carry-on items weighing a combined 7kg: a main bag for the overhead locker and a smaller item for beneath the seat. More generous allowances are available with certain bundles and fare types.
The policy change does not apply to Jetstar Japan-operated flights. Group bookings are also excluded, while eligible customers who booked before 5 August 2026 for later travel will receive Priority Carry-on at no additional cost.
The question about baggage revenue came as Qantas reported an underlying profit before tax of $2.064 billion for the year ended 30 June 2026. That was $330 million or approximately 13.8 per cent below the previous year’s $2.394 billion result.
Qantas said the Middle East conflict contributed to a $610 million increase in its fuel bill during the second half. Hedging, capacity changes, fare adjustments and other measures reduced the net impact on earnings to $420 million.
According to news.com.au, a reporter asked Hudson how much additional revenue Qantas expected the overhead-bag charge to generate.
“No, I’m not going to make additional comment on that,” Hudson replied, explaining that Jetstar’s revenue came from a combination of airfares and ancillary revenue.
In aviation, ancillary revenue is income generated beyond the basic airfare. It can include baggage fees, seat selection, meals, entertainment and other optional services.
Jetstar’s refurbished Boeing 787 Dreamliners provide another example of unbundling. Seatback entertainment screens are being removed, and passengers can instead stream entertainment to their own devices and purchase Wi-Fi packages.
Hudson maintained that Jetstar customers valued choice. Qantas’ official results announcement said around half of Jetstar’s Australian and New Zealand domestic customers flew for less than $150. News.com.au reported that this figure referred to the Starter fare and excluded optional extras such as baggage.
A non-scientific news.com.au reader poll had attracted almost 8,000 responses when reported, with just over 80 per cent opposing the baggage change. Some respondents called it a “money grab”, while supporters hoped it would reduce competition for overhead locker space and ease boarding congestion.
Jetstar CEO Stephanie Tully said the airline expected the model to improve boarding.
“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 Jetstar’s official announcement.
Whether travellers regard that as welcome flexibility or another fee wearing a tidy new uniform remains to be seen.
By: John Alwyn-Jones – © 2026.
Read Time: 3 minutes.
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A lifelong communicator with the polish of a broadcaster and the curiosity of a journalist, he’s spent decades shaping stories and strategies across tourism, aviation, and the cruise world. He’s led from the front as CEO, director, mentor, and advisor, and still brings warmth and wit to every boardroom and microphone.
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