Jetstar announced on 5 August 2026 that it will charge passengers a fee to place carry-on luggage in overhead lockers, becoming the latest low-cost airline to start charging for cabin baggage that used to be included in the ticket price (The Guardian; ABC News).

Under the new policy, expected to start next year, passengers who do not pay the fee will only be allowed a small bag that fits under the seat in front of them. The fee for using the overhead locker depends on the route: A$25 for Launceston to Sydney, A$33 for Sydney to Melbourne, and from A$52 for Cairns flights. Overall, the fee ranges between A$25 and A$52 (about US$18 and US$37) per flight (The Guardian; ABC News; wtvbam.com).

The announcement comes as Jetstar reshapes its whole carry-on system. The airline has introduced a new option called Priority Carry-on and a revised carry-on allowance at no additional cost. For flights booked before 5 August 2026, the maximum size for an overhead bag stays at 56 x 36 x 23 cm. Bags that are too big or exceed the item limit may have to be checked into the hold, with extra fees applying. Jetstar's current Starter fares let passengers bring two carry-on items with a combined maximum weight, though the exact weight limit depends on the fare type (Jetstar; Jetstar).

Jetstar already charges fees when passengers bring more carry-on baggage than their allowance permits. These fees go up depending on where the airline catches the problem: buying extra allowance online is cheapest, paying at airport check-in costs more, and paying at the boarding gate costs the most (Jetstar; Jetstar). The new overhead-locker charge adds another fee on top of all this, and it applies not to overweight or oversized bags but simply to the act of using the overhead bin at all.

On the fleet side, Jetstar's newer A321neo planes have overhead bins that are 40 per cent larger than on older aircraft, and the Boeing 787 Dreamliner includes a new crew rest area above the cabin that frees up extra locker space (Jetstar; Jetstar).

The broader context here is a business model called unbundling. That means an airline takes things that used to be part of your ticket — like checking a bag, picking your seat, and now using the overhead locker — and charges for each one separately. The airline can then advertise a lower base fare while making extra money from passengers who want those services. The fee of A$25 to A$52 per flight is relatively small compared to checked-baggage charges, which makes it seem like a minor add-on. But for people who fly short routes often, the cost on a return trip could add A$50 to A$104 to the total fare. That could eat into the savings that make budget airlines appealing in the first place.

For businesses that manage travel for their employees, the change adds another cost to keep track of. Carry-on fees have been easy to overlook in the past because they were included in the ticket. Once the overhead-locker fee begins, companies will need to decide whether to reimburse it, under what conditions, and whether the Priority Carry-on option should become the standard booking for employees who regularly need overhead storage.

Several details remain unclear. Jetstar has not given an exact start date beyond "next year." The airline has also not said whether the Priority Carry-on option will let passengers avoid the new locker fee entirely or just reduce it. The relationship between the new allowance described as "at no extra cost" and the new paid overhead-bin option needs explaining. It is possible that the free allowance covers only the under-seat bag, while using the overhead bin becomes a paid extra. That reading fits the policy as described, but Jetstar has not confirmed it directly.

For passengers, the practical takeaway is to expect a two-tier system for cabin baggage: a free under-seat bag and a paid option for the overhead locker, with extra fees still applying if bags are too heavy or too large. Booking early, buying the overhead option online instead of at the gate, and checking exactly what the fare includes before travelling will make the difference between paying a few extra dollars and a significant sum.