Brazil’s Congress is again debating a law that would require airlines to offer free checked baggage and carry-ons to all passengers. It’s a well-intentioned idea that feels good politically — but in practice, it could make air travel more expensive for everyone.
The Economics Behind Airline Fares
Airlines don’t print money; they allocate costs. When governments force them to include “free” items like checked bags, the reality is simple — those costs are redistributed into the base fare. So even passengers who fly light and travel efficiently would end up paying for someone else’s luggage.
The result? Higher fares for all, less flexibility, and fewer low-cost options.
Choice Is What Keeps Prices Low
When Brazil liberalized airfares several years ago, it allowed carriers like Azul, GOL, and LATAM to offer à-la-carte pricing — meaning travelers could choose what to pay for. If you didn’t need a checked bag, you saved money. If you did, you paid for that convenience. It was fair and transparent.
Reversing that model by mandating free luggage brings back the old system — one that hides costs and limits consumer choice.
The Global Standard
Virtually every modern airline worldwide uses unbundled pricing. From North America to Europe and Asia, passengers expect to pay separately for bags, meals, and seat assignments. It’s not a “trick” — it’s transparency.
Forcing Brazilian airlines to include luggage in all fares would make them less competitive internationally and erase years of progress in building a dynamic, customer-driven market.
What’s the Better Path?
Instead of pushing populist price controls, lawmakers should focus on protecting transparency — requiring airlines to clearly disclose all fees and conditions. Passengers deserve honesty and options, not artificial “freebies” that drive up costs.
The truth is simple: there’s no such thing as a free bag. Someone always pays — and under this law, it would be every traveler in Brazil.
