EU Aviation Rules Increase Price Transparency but Do Not Make Carry-On Bags Free
Recent headlines across Europe suggested that the European Union would require airlines to allow passengers to bring carry-on luggage on board without extra fees. This was seen as a major benefit for millions of travelers, including Israelis flying with low-cost carriers. However, according to the aviation and tourism website PYOK, the reality is quite different. The new regulations do not prohibit airlines from charging for carry-on bags stored in overhead compartments, and low-cost airlines' business models remain largely unchanged.
The confusion stems from a reform process that began in 2013 when the European Parliament's Transport Committee started updating passenger rights regulations known as EU261. These rules provide compensation for flight delays and cancellations. Airlines had pushed for changes, arguing that the existing rules increased operational costs, which were passed on to consumers.
The updated reform, recently approved by an EU committee, includes a provision about carry-on luggage, but its scope is limited. It guarantees passengers the right to bring one personal item free of charge, such as a small backpack or handbag that fits under the seat. This is already standard practice for most European airlines, so it represents no real change. Larger carry-on suitcases requiring overhead bin storage can still incur additional fees.
The key change is in price transparency. Airlines must now display ticket prices that include the cost of bringing a carry-on bag by default, although they can still offer cheaper tickets without carry-on allowance. Low-cost carriers like Ryanair expressed disappointment, not because they lose revenue, but because customers will first see the higher price including carry-on fees, potentially discouraging them from choosing the basic fare. About half of Ryanair's passengers currently opt to travel without a carry-on suitcase.
Another unresolved issue is the limited overhead bin space on planes, which means not all passengers with carry-on bags can store them onboard. Low-cost airlines plan to address this by showing two prices during booking: one including carry-on and one without. The International Air Transport Association (IATA) criticized the reform, saying it will not reduce delays but increase operational challenges and costs, calling it a "reform in name only." The legislation is now pending approval by the European Parliament and the Council of the European Union, with a vote expected in early July.
