[SAO PAULO] In an era when airlines are squeezing passengers with charges of an average US$25 for checked bags, Embraer SA is making more room for carry-ons.

Embraer's second-generation E-Jet will have overhead storage providing at least 40 per cent more volume per traveller than current models, according to the company. It will be the only single-aisle plane to let each flier to stash a roller bag, giving Embraer a unique advantage in its sales pitch.

The planemaker is betting it can outsell Mitsubishi Aircraft Corp, Sukhoi Co and Bombardier Inc by giving carriers a way to appease customers long familiar with losing perks in a revenue-conscious industry. Lucrative business passengers especially are more likely to shun airlines that lack room for carry-ons.