The European Union has reached a landmark agreement after 13 years of negotiations, mandating that airlines must include a larger hand luggage item in standard ticket prices from 2027. The rule applies to carry-on bags measuring up to 40cm x 30cm x 15cm, in addition to a small personal item under the seat. Airlines may offer cheaper tickets to passengers who voluntarily opt out of taking hand luggage.
New transparency requirements for airlines
The Council of the EU stated that 'to create price transparency, air fares including allowance for a piece of hand baggage shall be displayed by default before the start of any booking process to facilitate fare comparisons between airlines.' This is the first update to airline passenger rights in Europe since 2004, when Regulation EU261 established minimum rights for compensation, refunds, and assistance for delays or cancellations.
However, the UK has not adopted this amendment. While the original EU261 was copied into UK law after Brexit, future EU amendments are not automatically applied. The Civil Aviation Authority would need to enact similar legislation for UK airlines.
Who is affected and how
Rhys Jones, Aviation Editor at Head for Points, explained: 'Passengers flying on EU airlines will be able to take advantage of [the change] in both directions.' Non-EU airlines like Jet2 or easyJet would only be bound on flights from the EU back to the UK. For example, a flight from Mallorca to the UK would include free hand luggage, but not a flight from the UK to Mallorca. British Airways, though owned by Spanish holding company International Airlines Group, is considered a UK airline as its operating licence is issued by the UK, so it would not be bound on outbound flights unless UK law changes.
Impact on low-cost carriers
Ultra-low-cost airlines such as Ryanair, easyJet, and Wizz Air will be most affected, as they currently do not include trolley bags in their lowest fares. According to Rhys Jones, 'Affected airlines will now need to show a default price that includes a cabin trolley bag, although passengers will be able to opt out during the process for an additional saving. This will make it easier to compare to full-service airlines such as British Airways and Air France, where trolley bags are included in the fare.'
Airlines react
Ryanair CEO Michael O'Leary criticised the agreement, calling it 'gobbledygook' and 'more bureaucratic bunkum from the EU Parliament and Council.' He argued that the regulations 'require airlines to falsely advertise higher air fares, making EU airlines even less competitive' and noted that over 50% of Ryanair customers choose fares excluding a second cabin bag. In 2024, Ryanair earned €4.7 billion from extra fees, including baggage costs.
Other passenger rights updated
The amended regulations clarify several contentious topics. Airlines must now electronically inform passengers within 96 hours if they are eligible for delay compensation. The claiming process has been streamlined with a 30-day window for airlines to pay or decline. Compensation amounts remain unchanged: €250, €400, or €600 depending on flight distance, for delays of three hours or more. Rhys Jones noted that the changes 'should help make it clearer for both passengers and airlines.'
