EasyJet to charge for hold baggage

LONDON (Reuters) - EasyJet (EZJ.L), Europe's second-largest budget airline, announced on Friday a new baggage policy that will see passengers charged two pounds for every bag put in the plane's hold.

"This replaces the previous policy where the first hold bag was free but subsequent bags were charged at five pounds per item," easyJet said in an email.

EasyJet will still allow carry-on bags up to 55 by 40 by 20 centimetres, without weight limit.

"Fewer checked-in bags can help to improve the operational performance of airports," said easyJet, whose passengers face increasing delays at London airports due to tighter security checks and overcrowding.

A spokesman declined to comment on the impact on revenue from the change, which takes effect on flights beginning on October 1.

EasyJet shares bounced on the news, coming off a session low of 507 pence to trade up 0.39 percent at 515 pence at 2:58 p.m..

Rival Ryanair (RYA.I) on Tuesday reported that its quarterly ancillary revenues, which include baggage charges, jumped 53 percent to 117.1 million euros (78.98 million pounds).

EasyJet reports third-quarter results next Tuesday.