The trend of offering economy fares that only include a personal item continues to gain momentum. Following Lufthansa’s recent move, another European carrier is following suit. As of today, Air Baltic has introduced a new fare class called Economy Mini.
This fare includes only one personal item with maximum dimensions of 40 x 30 x 15 cm. Travelers who wish to bring a standard carry-on bag (such as a small trolley) measuring 55 x 40 x 23 cm must now pay an additional fee or select a more expensive fare class.
Using the route from Berlin to Vilnius as an example, the additional cost is a relatively manageable €5 per direction for now. However, history suggests that these fees are likely to be increased stealthily over the coming years:
Unsurprisingly, flights have not become noticeably cheaper with the introduction of these new fares. Experience with other airlines has shown that such unbundled fares are ultimately just hidden price hikes. This appears to be the case for Air Baltic as well. Google Flights data indicates that the flights mentioned above recently cost €98 round trip with a large carry-on included. Today, the price remains the same, but the carry-on now costs extra:
Our Assessment
It is almost surprising that Air Baltic waited this long to introduce these fares. Their primary competitor on many routes is Ryanair, which has utilized this pricing model for years. Apparently, Air Baltic’s previous strategy of rigorously weighing carry-on bags at the gate was sufficient to generate ancillary revenue until now. Now, they are seizing the opportunity to jump on the trend alongside Lufthansa, at least until the European Union eventually intervenes to mandate minimum standard dimensions for cabin baggage.
Source: Air Baltic Press Release