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Spain has fined five low-cost airlines a total of €179mn for “abusive†practices, including charging extra fees for hand luggage and seat reservations.
The countryâ€s consumer ministry announced the sanctions on Friday and hit Ryanair with the biggest fine of €107mn. It has ordered Vueling to pay €39mn and easyJet €29mn. Norwegian and Volotea received smaller fines of €1.6mn and €1.9mn respectively.
The ministry said it was also banning some of the practices for which the airlines were penalised, including charging extra fees for carrying hand luggage on to the aeroplane and reserving adjacent seats for children or other dependants.
Airlines were also banned from charging “disproportionate and abusive†fees for printing boarding passes, and from “misleading omissions†in pricing information that made it hard for consumers to compare prices, the ministry said. It also told the airlines that they must accept cash payments at Spanish airports.
Ryanair said it would appeal against the fines “immediatelyâ€. Chief executive Michael Oâ€Leary added: “Ryanair has for many years used bag fees and airport check-in fees to change passenger behaviour and we pass on these cost savings in the form of lower fares to consumers.â€
Norwegian commented that it was “committed to providing safe, affordable travel, and our baggage policy reflects thatâ€.
“We strongly disagree with the Spanish decision and will follow up on the matter with both Spanish and EU authorities,†it added.
Easyjet said: “We completely disagree with the decision . . . We will be formally appealing this through the courts and will vigorously defend our position.â€
The European Consumer Organisation BEUC welcomed the decision. “Consumers should not have to pay for basic services in their journey,†it said. “We see this as a victory for consumers and hope it remains unchallenged.â€
Charging passengers “ancillary fees†is critical to the business model of low-cost carriers. It allows them to offer cheaper tickets and then add extra charges, such as for checking in bags or choosing seats in advance. Many airlines also charge passengers to check in at the airport or for exceeding baggage weight limits.
Ryanair, Europeâ€s biggest low cost airline, made €2.7bn euros in revenue from ancillary fees in the first half of its financial year.
Industry bosses say the practice gives customers options to keep ticket prices down.
The Spanish sanctions were originally imposed by the countryâ€s consumer affairs and gambling authorities after an investigation begun last year found “very serious†infringements of Spainâ€s consumer regulations.
The airlines appealed against them but the ministry said on Friday it had rejected their appeals.
It said this was the first time that sanctions classified as “very serious†had been imposed by Spainâ€s consumer affairs authorities since they were given sanctioning powers in 2022.
