By Gemma Rasmussen
Head of Research and Advocacy | Tumuaki Rangahau, Taunakitanga
The days of a free 7kg carry-on baggage allocation when flying with Jetstar are now gone, with the airline announcing it is discontinuing free overhead carry-on baggage. We think that’s shrinkflation in action – in a major way!
In the past, Jetstar has described carry-on luggage as a “pain point” for customers and “explored ways to improve the carry-on experience”. As of Wednesday, that pain point has gone, with the airline announcing it is no longer offering a carry-on option. This will take effect from February 2027.
Instead, customers will have the option of purchasing a carry-on baggage allowance that can weigh up to 10kg. This will cost from $23 upwards, depending on how much your bag weighs.
The airline says you can bring a small bag on board to go under your seat, but if you’re wheeling on carry-on luggage, you’re paying.
Jetstar has not indicated that fares will be lowering because of the changes. So, in essence, they’re serving up shrinkflation. You’re paying the same – but getting less.
Your rights when travelling
You might have more rights than the airline is letting on. This is your one-stop guide to your flight rights and what to do when things go sideways.
Jetstar hit the headlines last year with passenger accusations of faulty baggage scales at Wellington airport – passengers claimed the airline had charged them a $65 penalty for carry-on being over the 7kg weight limit, even though other scales indicated the bags weighed less.
The airline was instructed by the Ministry of Business, Innovation and Employment to stop using two baggage scales after it was found they failed to meet legal accuracy requirements under the Weights and Measures Act 1987.
In response, the airline told the media that it understood its carry-on luggage “is a pain point for customers” and it was “actively exploring ways to improve the carry-on experience and policy”.
Its solution is possibly not what many customers were expecting.
Shrinkflation in action
Shrinkflation is the gift that keeps giving for New Zealanders, as businesses seek to tighten their belts by charging the same amount for less.
In Consumer NZ’s 2025 grocery survey, 72% of respondents told us they’d noticed shrinkflation. For both products and services, getting less for the same price has become a persistent theme as the cost-of-living crisis bites.
We’ve noted that Keri juice has shrunk from 3 litres to 2.4, and boxes of Cadbury Roses are now 10% smaller. Purex Mega Long toilet paper has become a little shorter, giving us 410 sheets per roll, rather than 450; and Rebel Bakehouse Gluten Free wraps have shrunk by 20%, going from 10 to 8 inches.
And it’s not just in the aisles where the offerings are paltrier. If you’ve walked around a major supermarket recently, you may have noticed there are less checkout operators, and more self-checkout machines springing up.
Banks are getting in on the shrinking business, too. Over the past decade, around 40% of New Zealand bank branches have closed, making it that much harder for people to access the cash services they need.
Shrinkflation can be hard to spot. When the price goes up, often we notice. But other cases are more subtle: when your packet of biscuits gets a little smaller, or when there’s no one waiting at the counter to greet you when you arrive at your hotel and you have to let yourself in with an electronic key.
Then there are the times that you’re no longer allowed to carry a complimentary 7kg bag on to an aeroplane, and you know shrinkflation has hit you right in the face.
