Jetstar says it will launch an investigation, after a Queensland passenger's luggage was branded with baggage stickers reading "I am gay".
The airline apologised when an image was posted on social media after the flight from Perth to Brisbane.
"We are taking this matter very seriously and we have contacted the passenger to apologise for any distress caused," a Jetstar spokeswoman said.
Twitter user @aaronpp posted the picture on Sunday, outraged by what he found.
"Utterly disgusted to find my luggage front and center on the @JetstarAirways luggage carousel looking like this," he wrote.
The man identified himself as a stay at home dad and a blogging author, and believed the incident occurred at Perth airport.
Twitter users responded to the post, describing the incident as "disgusting and unforgivable".
The post was retweeted more than 60 times yesterday.