Azul, the Brazilian low-cost carrier, will begin rolling out a new fare family on June 1 for passengers traveling only with hand baggage.

The new fare structure was made possible only after a regulatory tussle over the legality of charging fees for checked bags.

In December 2016, the Agência Nacional de Aviação Civil, the national civil aviation agency, struck down a regulation that legally required airlines in Brazil to provide a free checked bag.

But in March, a Federal Court in São Paulo issued an injunction against the change. A court in Ceara then overturned the injunction on April 29.

As a result, Brazilian airlines are now free to provide different fares based on checked baggage allowance.

Azul, which is headed by JetBlue founder David Neeleman, is starting slowly, with two fare categories.

The Azul fare provides a hand luggage allowance of 10kg per customer. If the customer wishes to check a bag, an allowance of 23kg per customer can be purchased at any time prior to departure for a fee of R$30.

The Mais Azul fare provides a hand luggage allowance of 10kg per customer and a checked bag allowance of 23kg per customer.

Both fare categories earn 100% of TudoAzul points.

The two branded fares will replace the current branded fares of Promo and Flex.

The Mais Azul fare will be available in all domestic markets.

The lower Azul fares will be rolled out across the network “in a deliberate and systematic manner to allow for a smooth transition for our crewmembers and customers,” beginning in 14 markets.