Ryanair is among a number of budget airlines fined a total of €179 million by Spain’s consumer rights ministry for practices including charging for cabin luggage.
The Irish carrier was fined €108 million in the ruling, while EasyJet, Vueling, Norwegian and Volotea were also among those hit, it emerged on Friday.
Ryanair defended its “lawful” baggage policy, insisting it will appeal the ruling which it claims is based on “outdated” Spanish law.
The decision upholds fines first announced in May and the ministry dismissed appeals lodged by the companies.
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It said the airlines violated customer rights when charging for larger carry-on luggage, seat selection or boarding pass printouts, as well as not allowing cash payments at check-in desks or to buy items on board.
The fines are a challenge to budget airlines’ business models, which hinge on charging rock-bottom prices for tickets and adding supplemental fees for larger carry-on bags that were previously not charged for by traditional airlines.
However, the decision prompted an immediate reaction from Ryanair which said its “one cabin bag free” policy had been deemed legal by various other Spanish and EU court rulings. It has instructed lawyers to immediately appeal the “unlawful and baseless” sanction, it said.
Chief executive Michael O’Leary said the financial penalties were politically motivated and in breach of EU law.
“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 in a statement.
“[The fines] will be overturned by the EU Courts, which have repeatedly defended the right of all EU airlines to set prices and policies free from Government interference.”
IAG’s low-cost unit Vueling was fined €39 million euros, EasyJet €29 million, Norwegian €1.6 million and Volotea €1.2 million.
Spanish airlines industry group ALA similarly branded the ruling “nonsense” and said it will appeal the fine in court.
Javier Gandara, the head of ALA, said all the airlines would appeal against the fine for cabin baggage charges, though not all would challenge other measures such as forcing airlines to accept cash when selling items on board.
Ryanair’s current bag policy states that all fares include one small personal bag which can be brought on board – handbags or laptop cases, for instance, which match certain size specifications and which can fit under an airline seat.
However, customers are warned that should small, or additional 10kg, cabin bags not fit the gate-side “baggage sizers”, they will be tagged and placed in the hold for a fee.
Earlier this month, the airline’s financial results were hit by cheaper air fares, although passenger numbers grew. Profits in the six months to the end of September fell 18 per cent to €1.79 billion from €2.18 billion during the same period in 2023.
It carried a record 115 million passengers over the six months while revenue rose 1 per cent to €8.69 billion. – Additional reporting: Reuters
