Spain slaps $187 million fine on Ryanair, EasyJet and others for 'abusive' cabin luggage fees

Spain's Ministry of Consumer Rights connected Friday slapped a $179 cardinal euro ($186 million) good connected 5 low-budget airlines for "abusive practices" including charging further compartment luggage fees.

Ryanair was struck with the lion's stock of the penalty, receiving a 107.78-million-euro fine. Spanish low-cost hose Vueling was ordered to wage 39.2 cardinal euros and EasyJet was fined 29 cardinal euros. Scandinavia's second-largest hose Norwegian and Spanish hose Volotea each received penalties successful excess of 1 cardinal euros.

The 5 airlines should discontinue their signifier of requiring further outgo for compartment luggage and reserving a spot adjacent a babelike traveler, the ministry said. The airlines were besides criticized for "disproportionate and abusive" charges to people tickets, allegedly omitting oregon failing to clarify pricing accusation connected their websites, and failing to let currency payments astatine Spanish airports.

Spain's Association of Airlines (ALA) said it volition entreaty the good for compartment luggage fees successful court, dubbing the punishment arsenic "manifestly illegal" and against European norms, according to a CNBC translation of a connection from the manufacture group.

"If implemented, the solution of the Ministry of Consumer Rights would connote irreparable harm to [the] passenger, an effort against their state to tailor their voyage depending connected their needs, and an work to wage for services that they mightiness not need," ALA President Javier Gandara said, according to a CNBC translation.

CNBC has reached retired to the airlines for comment.

Ryanair said it would "immediately entreaty Spain's amerciable and baseless baggage fines," with CEO Michael O'Leary saying the sanctions, which "have been invented by Spain's Consumer Affairs Ministry for governmental reasons, are intelligibly successful breach of EU law."

"The occurrence of Ryanair and different debased fare airlines successful Spain and crossed Europe successful caller years is wholly owed to Europe's Open Skies authorities and the state of airlines to acceptable prices and policies without interference from nationalist Governments which is what today's amerciable Spanish fines are," helium noted.

Norwegian, likewise, said it volition travel up with Spanish and EU authorities to quality the complaint and noted that its baggage argumentation reflects its committedness to "providing safe, affordable travel."

"We wholly disagree with the determination of the Spanish Consumer Ministry and find the projected sanctions outrageous," an EasyJet connection said, stressing it considers its compartment luggage argumentation to beryllium aligned with each applicable laws. "We volition beryllium formally appealing this done the courts and volition vigorously support our position."

After a agelong betterment pursuing Covid-19 question disruptions, fund airlines person been contending with a scope of issues including higher substance prices, planetary decarbonization and geopolitical uncertainty. Hold-ups successful craft deliveries from American shaper Boeing — which incurred much than $5 cardinal successful losses from a two-month-long machinist onslaught this autumn — person besides impacted postulation maturation rates, with Ryanair connected Nov. 4 downgrading its fiscal-year 2026 people to 210 cardinal passengers, from a erstwhile projection adjacent 215 cardinal connected relationship of the delays.

Last month, a GlobalData report projected that the low-cost bearer marketplace volition turn astatine a compound yearly maturation complaint of much than 10% implicit 2023-2028, citing affordability arsenic a cardinal precedence for specified airlines, which instrumentality cost-cutting measures specified arsenic other charges for baggage and in-flight meals.

In its June forecasts, the International Air Transport Association noted that profitability crossed carriers, including non-budget airlines, are slated to scope a record-high gross of $996 cardinal successful 2024, up 9.7% year-on-year.