Spain fines low-cost airlines $187 million for ‘abusive’ fees

Spain has imposed fines totaling nearly €179 million ($187.5 million) on Ryanair and four other low-cost airlines for engaging in abusive practices, such as charging passengers for hand luggage and reserving seats next to minors and dependent persons, according to officials.

Pablo Bustinduy, Minister for Social Rights, Consumer Affairs and Agenda of Spain, signed the sanctions for abusive practices against the low-cost airlines for a total amount of €178,933,632 euros ($187,512,605), according to a statement from the ministry on Friday.

The sanctioned airlines are:

• Ryanair: €107.78 million ($112.93 million)
• Vueling: €39.26 million ($41.14 million)
• EasyJet: €29.09 million ($30.48 million)
• Norwegian: €1.61 million ($1.69 million)
• Volotea: €1.19 million ($1.25 million)

The fines conclude an investigation which began in 2023 under the General Directorate of Consumption of Spain. The ministry classified the violations as “very serious,” according to Spain’s Consumer Protection Law.

This marks the first time that fines of such severity have been upheld by the Spanish state in the field of consumer rights, following the ministry’s new sanctioning authority granted in June 2022. The airlines have been prohibited from continuing the following practices:

• Charging extra fees for hand luggage in the cabin.
• Charging additional costs for seat reservations for minors, dependent persons, and their companions.
• Refusing to accept cash payments at Spanish airports.
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• Imposing excessive charges for printing boarding passes.
• Providing misleading information and lack of price transparency, which hinders consumers’ ability to compare offers and make informed decisions.

Additionally, Ryanair has been specifically fined for charging passengers an excessive amount for printing their boarding passes at terminals when they didn’t have them.

The fines are calculated based on the “illicit profit” obtained by the airlines from these practices. The ministry’s penalty system allows fines to be up to six to eight times the illicit benefit if it exceeds the prescribed limits of between €100,001 and €1 million ($104,744 and $1,047,390).

In response, the affected airlines have already announced plans to challenge the fines in court, arguing that the sanctions are “manifestly illegal,” according to Cadena SER.

The Airlines Association (ALA) criticized the ministry’s decision as “nonsense,” claiming that Spain would become the only EU country seeking to prohibit the practice of charging for cabin luggage, arguing that the fines constitute an illegal interference and an attack on free market principles, creating a competitive disadvantage compared to other countries where such charges are not banned.

The airlines have stated that the cabin baggage policy should remain unchanged, mentioning that it is neither viable nor reasonable to alter commercial policies until the courts have ruled on the ministry’s decision. They warn that implementing such changes could cause significant harm to passengers.