Spain fines budget airlines including Ryanair €179m
Spain has imposed a total fine of €179 million (£149 million) on five budget airlines for engaging in “abusive practices,” including charging passengers for hand luggage.
Ryanair received the largest fine, amounting to €108 million (£90 million), followed by EasyJet, which was fined €29 million (£24 million). Vueling, Norwegian, and Volotea were also sanctioned by Spain’s Consumer Rights Ministry on Friday.
The ministry has expressed plans to prohibit practices such as charging additional fees for carry-on luggage and reserving seats for children.
These fines are the largest ever issued by the ministry and follow an investigation into the budget airline sector. The penalties stem from fines originally announced in May, after the airlines’ appeals were rejected.
Vueling, which is owned by IAG (the parent company of British Airways), was fined €39 million (£32 million), while Norwegian Airlines and Volotea were penalized €1.6 million (£1.3 million) and €1.2 million (£1 million), respectively.
The airlines were found guilty of providing misleading information and lacking price transparency, making it difficult for consumers to compare offers and make informed decisions, according to the ministry.
Ryanair was particularly criticized for breaching several consumer rights, including charging extra fees for larger carry-on luggage, seat reservations, and demanding excessive charges to print boarding passes at terminals. The fines were calculated based on the “illicit profits” the airlines earned from these practices.
Ryanair’s CEO, Michael O’Leary, has called the fines “illegal” and “baseless” and has vowed to appeal the ruling in the EU courts.
“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,” he said.
Easyjet and Norwegian said they would also appeal the decision.
The Spanish airline industry watchdog, ALA, plans a further appeal and has called the ministry’s decision “nonsense”, arguing the fine infringes EU free market rules.
But Andrés Barragán, secretary general for consumer affairs and gambling at the ministry, defended the fines, saying the government’s decision was based on Spanish and EU law.
“It is an abuse to charge €20 for just printing the boarding card in the airport, [it’s] something no one wants,” he told the BBC’s World Business Report programme.
“This is a problem consumers are facing not only in Spain but in other EU countries.”
Consumer rights association Facua, which has campaigned against the fees for six years, said the decision was “historic”.