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Spain's Ministry of Consumer Affairs has slapped five major low-cost airlines with hefty fines totaling €179 million for a range of alleged abusive practices, including charging extra fees for hand luggage. The largest fine, amounting to €107.78 million, was imposed on Ryanair, while other carriers like Vueling, EasyJet, Norwegian, and Volotea were also penalized.
The fines stem from the airlines' practices of charging additional fees for hand baggage, seat selection, and ticket printing, which Spain's Ministry deemed "disproportionate and abusive." The ministry also accused the airlines of failing to provide clear pricing information on their websites and not accepting cash payments at Spanish airports.
The five airlines are now required to stop charging for hand luggage and to adjust their seat selection policies. Additionally, they must address the clarity of their pricing and make changes to their ticketing practices.
Ryanair, Vueling, EasyJet, and Norwegian have all expressed strong disagreement with the penalties, stating that the fines are unjustified and illegal under European law. Ryanair CEO Michael O'Leary called the sanctions "politically motivated" and emphasized that they were in clear violation of EU regulations. EasyJet and Norwegian also vowed to appeal, arguing that their policies are in compliance with current laws.
The fines come as low-cost airlines are already facing challenges in recovering from the disruptions caused by the COVID-19 pandemic. Issues such as rising fuel prices, geopolitical uncertainty, and delays in aircraft deliveries from Boeing are weighing heavily on the sector. Ryanair, for example, recently downgraded its passenger target for 2026, citing slower traffic growth due to ongoing disruptions.
Despite these challenges, the low-cost carrier market is expected to grow at a rate of over 10% annually between 2023 and 2028, according to a recent GlobalData report. The airlines' focus on affordability, including extra charges for baggage and in-flight meals, continues to attract budget-conscious travelers.
The fines are the latest in a series of challenges facing the airline industry, which is projected to reach record profitability in 2024, according to the International Air Transport Association (IATA), despite ongoing difficulties.
Source: Money Review, CNBC
