Spain imposes a 150 million Euro fine on low-cost airlines for extra charges on hand luggage.

Schadenfreude among passengers: Four low-cost airlines fined 150 million euros in Spain for hand luggage fees.

6/3/2024, 6:17 PM
Eulerpool News Jun 3, 2024, 6:17 PM

Four budget airlines that imposed additional fees for carry-on luggage, among other charges, have been fined a total of 150 million euros in Spain. The affected airlines are Ryanair, Easyjet, Vueling, and Volotea. The state television broadcaster RTVE and other media reported on the fines, citing the relevant Ministry of Social Rights and Consumer Protection in Madrid.

The Spanish government has questioned the business model of low-cost airlines, which charge extra for every conceivable service. Media and the Spanish consumer protection association Facua, whose complaint led the ministry to initiate sanction proceedings last summer, described the fine as historic. Facua Secretary-General Rubén Sánchez declared: "This is exactly what we are fighting for, to put an end to fraud and illegal practices." This is the first time they are satisfied with the amount of a fine.

Agustín Reyna, Director for Legal and Economic Affairs at the European Consumer Organization (BEUC), called it a "strong and welcome signal" from Spanish authorities. The unfair policies of airlines regarding hand luggage must stop. He called for EU-wide standards for hand luggage regulations to harmonize airline requirements for consumers and ease the burden on air travelers.

The Spanish association ALA, which represents more than 60 airlines operating in the EU country, sharply criticized the decision. In a statement, it said that the penalty amounted to a ban on hand luggage fees and harmed consumers, particularly the 50 million passengers who do not carry hand luggage in the cabin. "Passengers are being deprived of the opportunity to pay exactly for what they need," the association said.

Investigations against the low-cost airlines were initiated after they tightened their hand luggage rules. The ministry considered this a violation of Spanish law, as services traditionally included in the ticket price were now being charged separately. Additionally, the airlines only referenced the price before additional costs in their advertisements, which gave them better positioning in search engines.

The investigations also targeted other practices considered non-compliant with the law, such as surcharges for seat reservations, particularly for companions of minors or individuals in need of assistance.

The affected airlines may still contest the ministry's decision. The airline association ALA does not rule out legal action, as reported by RTVE.

This development represents a significant step in the fight against unfair practices by low-cost airlines and could have far-reaching consequences for the industry.

Own the gold standard ✨ in financial data & analytics
fair value · 20 million securities worldwide · 50 year history · 10 year estimates · leading business news

Subscribe for $2

News