EU’s Proposed Luggage Rules Could Reshape Budget Airline Economics, FT Says

Europe’s aviation regulatory landscape could be on the brink of a significant shake‑up as proposed new rules on luggage allowances threaten to disrupt the business model of ultra‑low‑cost carriers (ULCCs) such as easyJet and Ryanair, according to a Financial Times analysis. 

The FT report highlights concerns within the airline industry that stricter luggage pricing and allowance rules under consideration by European regulators may force carriers to alter their ancillary‑revenue strategies. Budget airlines typically rely on optional charges for carry‑on and checked baggage to keep headline fares low while monetising additional services. 

Under the potential regulatory framework, airlines might be required to provide higher baseline allowances or change how they disclose fees — steps intended to make pricing more transparent for consumers but which could erode a core profitability driver for ULCCs. The Financial Times raises questions about whether such requirements could drive up base fares, diminish competitive pricing, or even prompt carriers to rethink network structures. 

Industry sources point out that the budget model’s success has hinged on unbundling services and letting travellers “choose what they pay for.” Critics of the proposed rules argue that mandating standardised baggage policies might eliminate flexibility, reducing the ability of carriers to offer ultra‑low headline prices. 

While regulators argue that the move could benefit passengers through clearer pricing and fewer surprise fees, airlines counter that it could compress margins in an already cost‑sensitive sector, especially amid high fuel prices and competitive pressures. 

The outcome of these regulatory discussions will be closely watched by carriers, regulators and passengers alike, as changes could reshape cost structures and consumer expectations across Europe’s airline industry.