EasyJet Boss Warns EU Cabin Bag Plan Undermines Consumer Value Propositions

The head of EasyJet has cautioned that European Union baggage regulations could undermine the value propositions that budget carriers offer to price-conscious consumers.
Proposed legislation would mandate free cabin baggage across European aviation. European legislators voted decisively to support regulations requiring airlines to provide allowances for both personal items and larger carry-on luggage to all passengers.
Kenton Jarvis argues that current business models create genuine value by offering ultra-low base fares. Budget-conscious travelers can access air travel at price points that would be impossible if all services were bundled together in inclusive fares.
Mandatory free baggage would force airlines to increase base prices to recover costs, potentially making air travel less accessible to the very consumers who have benefited most from low-cost carrier innovations over recent decades.
The airline generates more than £2.5 billion annually from ancillary services that support competitive pricing. EasyJet reported quarterly losses of £93 million but sees positive indicators in booking activity and geographic market expansion across Mediterranean and African destinations.