The Spanish Ministry of Consumer Rights has fined 5 low-cost airlines operating in the country, for a total of €179 million, almost €30 million over an earlier reveal and the addition of another airline on the list.
1. Unacceptable practices
In summer, the Ministry revealed a total penalty of just four carriers amounting to over €150 million euros, without detailing the exact sums for each airline. With the addition of Norwegian Airlines to the previous Ryanair, Vueling, EasyJet and Volotea, the amount for each carrier has also now been revealed:
- Ryanair – €108 million
- Vueling, the-cost airline in the IAG group, that also owns British Airways – €39 million
- EasyJet – €29 million
- Norwegian Airlines – €1.6 million
- Volotea – €1.2 million
As well as responding to the hand luggage fees, other practices deemed unacceptable were charges for passengers wishing to choose a seat next to a dependent or infant, charging a “a disproportionate amount” to print boarding passes at the airport and limiting cash payments for tickets at airports. But it was the luggage fees that came in for the most intense criticism, ahead of plans to ban such fees on all airlines operating in Spain.
The Ministry has also clarified that the fined amount was calculated based on the “illicit profit” each carrier made from the “abusive practices”, which include untransparent extra charges and misleading information that make it difficult for consumers to straightforwardly see a final price for their tickets, thus limiting their ability to compare and choose different offers.
2. Response from airlines
While welcomed by consumer groups, airlines are expectedly not thrilled about the penalties, which are the biggest sanction ever issued by the Consumer Rights Ministry, arguing that charging for extra services is at the base of the low-cost business model that allows passengers to travel cheaply only with essentials.
Calling the fines “nonsense”, the Spanish airline industry association (ALA) has argued they go against EU free market rules and is planning to appeal the decision. Ryanair CEO Michael O’Leary has also indicated he will appeal to EU courts, while saying the fines are “illegal” and “baseless”.
Meanwhile, calling the decision to remove hand luggage charges across all airlines “appalling”, the International Air Transport Association (IATA) said that “the move undermines freedom of pricing which is fundamental to consumer choice and competition, a principle that has been long upheld by the European Court of Justice.”
According to a survey commissioned by the Association, polling both leisure and business air travellers in Spain:
- 65% prefer to pay the lowest price possible for their air ticket and pay extra for any additional services that are needed
- 66% agreed that in general there is sufficient transparency on fees charged by airlines for various travel options
- 78% said that air travel is good value for money
- 74% said they feel well-informed about the products/services they are buying from airlines
Additionally, IATA pointed out that the findings align with the latest Eurobarometer survey by the European Commission in which 89% of travellers Europe-wide said they were well informed about their luggage allowance.
“Prohibiting all airlines from charging for cabin bags means that the cost will be automatically priced into all tickets”, commented IATA Director General Willie Walsh. “What’s next? Forcing all hotel guests to pay for breakfast? Or charging everyone to pay for the coat-check when they buy a concert ticket? EU Law protects pricing freedom for good reason. And airlines offer a range of service models from all-inclusive to basic transport. This move by the Spanish government is unlawful and must be stopped.”
On the other hand, the European Parliament adopted a resolution in autumn 2023 to eliminate hand luggage charges which it deemed “a necessary aspect” of travel, amid moves to standardise carry-on dimensions for all airlines operating in the EU bloc, meaning that Spain could simply be ahead of its fellow Member States in adopting a soon-to-be universal regulation.
