Europe's low-cost airlines are facing potential changes that could upend their operating model, as the European Parliament considers a proposal that would allow each passenger to carry one piece of hand luggage weighing up to 7kg for free, in addition to a personal item such as a handbag or laptop.
The change hits one of the low-cost carriers' main sources of revenue, as baggage fees account for a significant portion of their profits. Last year, European airlines collected about $16 billion from baggage fees alone, with 60% of that coming from low-cost carriers.
That is why they are warning that imposing these rules could lead to higher ticket prices, delays in boarding and a general destabilisation of the cheap travel model. They argue that if all passengers are entitled to free hand luggage, the amount of luggage carried in the cabin will increase significantly, which can slow down the boarding process as passengers need more time to place their luggage in the limited storage spaces of the aircraft. In many cases, some of the luggage will have to be transferred to the baggage hold at the last minute, which can cause additional delays before departure.
For low-cost airlines, which base their business model on fast turnaround times and multiple flights per day, even a few extra minutes in the boarding process can affect the overall flight schedule. At the same time, flexible operational procedures are a key element of the low-cost model, which allows them to keep the base fare low. After all, the revenue from additional services they provide is what covers a significant part of the aircraft's operating costs, helping airlines offer low, base ticket prices.
The debate is ongoing, and it is likely that the rules will be implemented in the coming years, affecting both costs and the travel experience. Low-cost airlines are already looking for ways to adapt to keep ticket prices low and offer choice to the traveling public.
This article first appeared, in Greek, in the most recent edition of Hermes Airports' online newsletter Flight Mode. Click here to view it.
