EasyJet Attacks EU Free Baggage Proposal Warning of Revenue Model Collapse

British budget airline EasyJet has warned that European Union baggage regulations could trigger the collapse of revenue models that have enabled the low-cost carrier revolution.
Legislative proposals to mandate free cabin baggage have secured parliamentary approval and advanced toward potential implementation. The regulations would require airlines to provide allowances for both personal items and larger carry-on bags to all passengers.
The airline’s leadership emphasizes that ancillary revenues represent a cornerstone of budget carrier economics. EasyJet generates more than £2.5 billion annually from optional services including baggage fees, revenue that enables the competitive base fares that have made air travel accessible.
Eliminating these revenue streams would force fundamental business model restructuring. The airline would need to recover all costs through base tickets, potentially ending the era of ultra-low fares that have democratized air travel across Europe.
EasyJet continues navigating challenging business conditions with quarterly losses of £93 million, though management attributes some losses to strategic investments. The carrier sees positive momentum in booking activity and geographic market expansion.