There are two baggage types: Checked luggage and carry-on or also referred to as cabin/hand luggage. Personal belongings on board are referred to as hand luggage (cabin baggage), luggage delivered to an airline to be stored in an inaccessible area to the passenger during the flights is referred to as checked baggage.

The primary difference between hand baggage and "baggage" (typically referring to checked baggage) lies in where the items are stored during the flight and the regulations governing them. Hand baggage, also known as carry-on or cabin luggage, remains with the passenger in the aircraft cabin and is stored either in the overhead bin or under the seat in front. It is subject to strict size and weight limits set by the airline, as well as rigorous security screenings for prohibited liquids and sharp objects. In contrast, checked baggage is handed over at the check-in counter, tagged, and transported in the aircraft's cargo hold. This type of baggage allows for much larger and heavier items, including liquids over 100ml and tools that would be barred from the cabin. While hand baggage is immediately accessible during the flight, checked baggage is not reachable until the passenger arrives at the destination's baggage claim. In 2026, many budget airlines have further separated these categories by charging extra for any hand baggage that does not fit under the seat, making the "personal item" a third distinct category in the luggage hierarchy.