IATA Blasts EU Over Cabin Bag Rule, Warns of Global Impact on Air Travel Costs

Image: IATA accused the EU of meddling in operational and commercial issues that it doesn’t understand (Photo Credit: IATA)
Image: IATA accused the EU of meddling in operational and commercial issues that it doesn’t understand (Photo Credit: IATA)
Natasha Lair
by Natasha Lair
Last updated: 8:45 AM ET, Fri June 20, 2025

The International Air Transport Association (IATA) is pushing back against a proposed amendment by the European Parliament that would mandate a free cabin baggage allowance for all pax—regardless of whether they need it—warning that the move would raise airfares and create operational complications that ripple across the global aviation industry.

The controversial amendment, part of the enforcement of Passenger Rights (2023/0437), was introduced by Members of the European Parliament (MEPs) in the TRAN committee.

It calls for passengers to be allowed an additional 100cm cabin bag at no charge, effectively standardizing a service that is currently optional for many low-cost airline models.

“When regulators meddle in commercial or operational issues they don’t understand, they usually get it wrong,” said Willie Walsh, IATA’s Director General.

“Our consumer research tells us that the majority of travelers want to pay the lowest price possible for their ticket and buy the additional services they need. That’s the complete opposite of an amendment that will force airlines to re-bundle their offering.”

Walsh added that such measures could result in unintended consequences, including increased fares and logistical challenges at airports.

“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. If EU Parliamentarians insist on regulating where regulation is not needed, they should be prepared to take responsibility for its negative consequences,” he said.

IATA’s April survey found that 72% of global travellers agreed with the statement: “I prefer to pay the lowest price possible for my air ticket, and pay extra for any additional services I need.”

The same survey revealed that only about 30% of pax currently pay to bring a bag onboard. According to IATA, this indicates that the majority of travellers would end up subsidizing the minority if the proposed rules are enforced.

Airlines worldwide—particularly low-cost carriers—have adopted unbundled pricing models to keep fares competitive and to allow more choice. A mandatory re-bundling of services could erode that flexibility and increase operational strain, particularly at already congested airports.

IATA’s April 2025 passenger polling data canvassed 6,500 recent travellers in 15 markets (Chile, US, Canada, Spain, UK, France, Germany, Netherlands, UAE, India, Singapore, Indonesia, Australia, Japan and China). Panels were provided by Dynata with analysis by Savanta.

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