Lufthansa Group is launching a new “Economy Basic” fare that charges extra for larger carry-on luggage as it restructures pricing for short- and medium-haul flights. The move reflects a broader industry shift toward unbundled fares amid rising fuel costs and competitive pressure.
Lufthansa introduces discounted fare in Europe limiting free carry-on bags
Lufthansa Group is launching a new “Economy Basic” fare that charges extra for larger carry-on luggage as it restructures pricing for short- and medium-haul flights. The move reflects a broader industry shift toward unbundled fares amid rising fuel costs and competitive pressure.
April 23, 2026
Ludwig Burger/Reuters

FILE PHOTO: An aircraft of German air carrier Lufthansa takes off from Berlin Brandenburg Airport in Schoenefeld, Germany, April 21, 2026.
Lisi Niesner/Reuters
Lufthansa Group LHAG.DE has unveiled plans for a new "Economy Basic" fare that adds a new variant in Europe to passengers' struggle with size limits on carry-on bags, saying that an item larger than a "laptop bag or a small backpack" would cost extra.
"Those who wish to bring more luggage can flexibly add carry-on or checked baggage as an add-on service within this particularly affordable fare or choose a fare option with expanded baggage allowances," the German airline group said on Thursday.
Beginning gradually from April 28, the new low-cost fare can be booked online for short- and medium-haul flights from May 19 across the group's brands.
The new fare will come at a discount to the established "Economy Light" class, which will be enhanced to include an option to rebook reservations for a fee.
Lufthansa added this would enable "a clear, transparent selection tailored to individual needs".
While a number of large U.S. carriers such as United Airlines UAL.O have offered basic fares that charge extra for in-cabin baggage beyond a personal item, Lufthansa could set a trend among European full-service airlines.
A surge in jet fuel prices driven by the U.S.-Israeli war on Iran has forced airlines around the globe to take steps including raising fares and cutting their financial outlooks.
Among measures taken, American Airlines AAL.O is marking up fees on checked baggage by $10 each for the first and second bag and by $150 for the third on short-haul flights. It also trimmed certain benefits for economy passengers.
-Reporting by Ludwig Burger and Ilona Wissenbach in Frankfurt, Editing by Miranda Murray and Keith Weir/Reuters
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