The basic concept of packet bundling is to group smaller packets into larger packets based on, e.g., quality of service or destination within the packet switch. This paper presents novel applications of bundling in packet switching. The larger packets created by bundling are utilized to extend switching capacity by use of parallel switch planes. During the bundling operation, packets will experience a delay that depends on the actual implementation of the bundling and scheduling scheme. Analytical results for delay bounds and buffer size requirements are presented for a specific scheduling algorithm, and compared to simulation results.