Spain’s Consumer Rights Ministry Levies €179M in Fines Against Budget Airlines for “Abusive Practices”

The Spanish government has imposed a cumulative fine of €179 million (£149 million) on five low-cost airlines due to what it terms “abusive practices,” such as levying charges for carry-on baggage. Ryanair incurred the most substantial penalty, amounting to €108 million (£90 million), while EasyJet was assessed a fine of €29 million (£24 million). Vueling, Norwegian, and Volotea also received sanctions from Spain’s Consumer Rights Ministry on Friday. The ministry indicated its intention to prohibit certain practices, including additional charges for carry-on hand luggage and fees for reserving seats for children. These penalties represent the largest sanction ever issued by the ministry and are the result of an investigation into the budget airline sector. The ministry confirmed it had affirmed the fines, initially declared in May, following the rejection of appeals submitted by the affected companies. Vueling, which operates as the low-cost division of IAG, the parent company of British Airways, received a fine of €39 million (£32 million). Norwegian Airlines and Volotea were fined €1.6 million (£1.3 million) and €1.2 million (£1 million), respectively. According to the ministry, these fines were imposed because the airlines were determined to have supplied deceptive information and lacked price transparency, a situation that “hinders consumers’ ability to compare offers” and make well-informed choices. Ryanair faced accusations of infringing various consumer rights, specifically for charging for larger carry-on baggage, seat selection, and requesting “a disproportionate amount” for printing boarding passes at airport terminals. The calculation for each fine was based on the “illicit profit” that each airline gained from these specific practices. Michael O’Leary, the chief executive of Ryanair, stated that the fines were “illegal” and “baseless,” indicating his intention to appeal the decision and pursue the case in the EU courts. He commented, “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.” EasyJet and Norwegian also announced their plans to appeal the ruling. The Spanish airline industry association, ALA, intends to lodge an additional appeal, characterizing the ministry’s decision as “nonsense” and contending that the fine violates EU free market regulations. Conversely, Andrés Barragán, the secretary general for consumer affairs and gambling at the ministry, defended the penalties, asserting that the government’s determination was grounded in both Spanish and EU law. He informed the BBC’s World Business Report programme, “It is an abuse to charge €20 for just printing the boarding card in the airport, [it’s] something no one wants.” He further added, “This is a problem consumers are facing not only in Spain but in other EU countries.” Facua, a consumer rights association that has advocated against these charges for six years, described the decision as “historic.”