Ryanair Holdings, Europe's largest low-cost airline, will bar passengers from traveling with anything other than hand luggage as it seeks to cut costs.
Ryanair plans to offer an "unlimited" allowance for carry-on bags that comply with government size limits while abolishing checked luggage from next spring, Chief Executive Officer Michael O'Leary said today. The airline anticipates savings of 20 million euros a year ($28 million).
"We're going to move away from check-in luggage to more carry-on luggage," O'Leary said at a press briefing in London. "This isn't the end of civilization as we know it, it only sounds revolutionary. I can assure you it's not."
Ryanair is already scrapping airport check-in desks for passengers from Oct. 1, compelling people to register for flights via the Dublin-based company's Web site. According to O'Leary's new rule on baggage, passengers must carry all belongings onto the plane themselves and only when overhead lockers become full will items be stowed in the cargo hold.
Ryanair rose 84 cents, or 2.7 percent, to 3.22 euros in the Irish capital. The stock has advanced 8.4 percent this year.
"It does place significant stress on an airport's security infrastructure, but it's another option to negotiate on costs with airports and baggage handlers," said Andrew Lobbenberg, an analyst at Royal Bank of Scotland Group in London who recommends buying Ryanair stock.
The U.K. Civil Aviation Authority said it won't consider the case until Ryanair gives notice that it will go ahead with the change. BAA, which owns airports including London Stansted, Ryanair's biggest U.K. base, said it will look at the proposal in more detail.
"Currently every airport has a different policy on hand luggage depending on their unique requirements," spokesman Stuart Butchers said in an e-mailed statement. "These policies are negotiated on a unilateral basis between the airport operator, airlines and the Department for Transport."
The Transport Department said it's only responsible for size restrictions on carry-on bags, which must measure no more than 56 centimeters (22 inches) by 45 centimeters by 25 centimeters. O'Leary said at the briefing that people may no longer be able to transport items such as skis, before adding that details have yet to be finalized.
