IATA Slams EU Parliament Over Mandatory Cabin Bag Rule, Citing Cost Impacts

The International Air Transport Association (IATA) has issued a sharp rebuke of the European Parliament’s proposed amendment to aviation passenger rights, warning that a plan to make cabin luggage allowances mandatory and free for all passengers could lead to widespread fare hikes and operational disruption across Europe’s airline industry.

The controversial move stems from an amendment within the Passenger Rights Regulation (2023/0437), passed by the European Parliament’s TRAN Committee (Transport and Tourism), which would require airlines to allow an additional 100cm cabin bag at no charge, irrespective of whether the passenger opts to travel light or not.

IATA, the global airline industry trade body representing over 300 airlines accounting for 83% of global air traffic, says the rule is a misguided attempt at consumer protection that fails to reflect how travelers actually want to fly.

Airlines Warn of Rebundling Consequences

“When regulators meddle in commercial or operational issues they don’t understand, they usually get it wrong,” said Willie Walsh, IATA’s Director General. “Consumers will be disappointed with higher costs for all, and they will be frustrated with the operational chaos of determining which bags meet the requirements and which do not.”

IATA’s concern is that the policy would force airlines to re-bundle airfare components, removing pricing flexibility that currently allows travelers to choose between base fares and optional services like seat selection, food, or luggage. Walsh argued that such one-size-fits-all rules penalize cost-conscious consumers who deliberately travel light to minimize expenses.

Majority of Travelers Want Choice, Not Uniformity

Backed by fresh consumer insights, IATA released findings from a global passenger survey conducted in April, which found that:

• 72% of travelers prefer to pay the lowest base fare and choose additional services à la carte.

• Only about 30% of passengers typically bring a paid cabin bag, meaning the new rule would result in the majority of passengers subsidizing a minority.

• The top priority for air passengers—after safety—is affordability, with baggage flexibility and personal control ranking far above mandatory inclusions.

IATA contends that uniform baggage rights contradict low-cost airline models and passengers’ evolving habits. In particular, it highlights the disparity between business travelers and ultra-light leisure travelers, for whom carry-on luggage is often unnecessary or minimal.

Airlines Fear Operational Disruption

Beyond price impacts, IATA warns of chaos at boarding gates and during luggage screening, as flight crews would be forced to assess and enforce carry-on baggage dimensions for all passengers. The risk of delays, confrontations, and increased overhead bin congestion is real, especially on short-haul European routes operated by budget carriers.

Critics of the EU Parliament's move argue that airlines are already governed by consumer protection rules and market incentives to offer attractive, transparent pricing. Forcing them to adopt a uniform baggage policy ignores differences in airline models, passenger preferences, and route types.

A Call for Pragmatism and Consultation

IATA has urged policymakers to consult more extensively with industry stakeholders before adopting regulations that reshape the commercial structure of air travel. Walsh called on Parliament to acknowledge that “regulation is not the answer to every consumer concern,” particularly when the market already offers diverse options catering to different budget levels and travel needs.

“If EU Parliamentarians insist on regulating where regulation is not needed, they should be prepared to take responsibility for its negative consequences,” Walsh said, noting that higher costs and reduced consumer satisfaction would be inevitable.

What’s Next?

The amendment is not yet law. It must still undergo negotiations between the European Parliament, the European Commission, and the European Council as part of the broader revision of EU passenger rights legislation. Airlines and travel organizations are expected to lobby intensely against the baggage proposal during the next phase of deliberations.

In the meantime, IATA is doubling down on its campaign to educate policymakers and consumers about the real-world consequences of the rule, while airlines brace for the potential impact on operations, customer service, and competitive pricing models.