Jetstar's new $25 carry-on rule exposes major travel insurance flaw: 'Really peculiar'

A travel insurance expert has raised concerns with Jetstar's new carry-on baggage policy, effective February 2, 2027. The budget airline will no longer allow a 7kg weight limit for carry-on bags. Customers will only be permitted an underseat bag (e.g., backpack, handbag, laptop bag). To bring a second bag in the overhead locker, they must purchase priority carry-on, starting at $25. Warren Duke, a travel insurance expert at Compare The Market, expressed concerns about potential gaps in travel insurance coverage for items stored in cargo, such as jewellery, cash, and cameras, which are often excluded due to their fragility and risk of damage during handling. He noted that insurers are unlikely to adjust policies quickly. Additionally, the change may increase checked baggage, raising risks of lost luggage, with one in five Australians reporting such incidents. Jetstar justifies the change as aligning with other low-fare carriers and improving overhead locker efficiency. Customers will still weigh their priority carry-on bags at $10kg max, and babies can bring an additional underseat bag. No changes are made to checked baggage policies. The airline emphasizes that the new model offers more choice and lower fares by charging only for what is needed.