News and Research

Will Europe’s planned luggage rules kill the budget airline business model?

January 31, 2026

Financial Times

Jay Sorensen, an expert on airline charges who runs the IdeaWorks consultancy, warned that such a move would “mess with the income mechanics of a low-cost carrier” resulting in higher fares.

He estimates European-based airlines collected $16bn in bag fees last year, with around 60 per cent going to low-cost carriers. While bag fees are not normally broken out, wrapped in with “ancillary” charges alongside food sales and seat bookings, Sorensen estimates they contribute to just under a fifth of total revenues for budget airlines.

Scroll to Top
IdeaWorksCompany
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.