No-frills airline Ryanair is considering imposing a £50 surcharge for passengers checking in bags as a first step to banning hold luggage completely.

Recently the airline increased its cabin baggage allowance by 30% to 10kg. At the moment, it will still allow passengers to check in up to 15kg of hold luggage. It says: “We are moving towards no hold luggage, and hope the additional cabin allowance will encourage people to carry just hand luggage.”

The move is aimed to reduce airport handling costs and follows research showing fewer than 50 per cent of Ryanair passengers had check in baggage, with the average stay only two-and-a-quarter days.

The move could be interesting for some holiday homeowners who tend to keep a set of clothes at their second home anyway. Cheap and last-minute flights from local airports are one of the way second home owners make good use of their property. However, those setting up a holiday home often take goods for the property and will be hit by the move until the place is established. Also people renting out their second home often don’t leave many personal belongings there.

Ryaniar chief executive Michael O'Leary acknowledged it would take time to persuade passengers to reduce their luggage requirements, but in his typical cavalier attitude said, "If you want to carry more, then fly with more expensive airlines. But you can save so much with Ryanair you can buy your hair dryer when you arrive... Do we lose some passengers? Yes, but we will more than make them up with others."

The Irish airline also plans to offer one million seats at 99p each as part of it winter sale.

The drive to reduce costs has been highlighted in recent months by the intensifying airfare war between Ryanair and its budget rivals.