Boeing has shown off its 'space bins' that can hold 50% more luggage than existing designs.
The company says the new overhead compartments will allow passengers to store more hand luggage on its side.
The bins will be fitted to some 737 aircraft from the end of this year, the company said.
The new design will mean a 2in (5cm) reduction in headspace for passengers, it said, but air vent and light controls will be easier to reach.
'Long-suffering'
The loss of headroom may be of some concern to taller passengers, some of whom already struggle with the amount of legroom in economy seating.
The new bins can be retrofitted to any of the 'Next-Generation' 737s, of which 5,000 are currently in service.
Boeing says the balance of the bins has been shifted so they close without the need for a catch or the 'bin assist mechanism' currently in use.
Travel writer Simon Calder told the BBC: 'For the long-suffering passenger, this is mostly good news. By charging for luggage, the low-cost airlines have incentivised us to take everything on board.
'And guess what? There isn't enough room, so we've had to check in stuff at the gate.
'So this should help with that problem.'
Boeing said the bins should speed up boarding and that 'passengers will benefit from decreased anxiety about finding space for their carry-on bag when boarding a flight'.
Alaska Airlines and Delta Air Airlines are the first two operators to place orders for the bins for their 737 fleets.
Source: BBC