The fines were calculated based on what was considered “illicit profit” from so-called junk fees.
Consumer rights regulators in Spain have issued a total of €179 Million in fines to five European budget airlines, saying their fees amounted to “abusive practices” under Spanish and European Union consumer protection laws.
The largest fine was issued to Ireland’s Ryanair, Europe’s largest airline in passenger volume. EasyJet (United Kingdom), Vueling (Spain), Norwegian (Norway), and Volotea (Spain) were also issued fines. Each of the carriers operates using an “ultra low cost carrier” (ULCC) model, similar to U.S. carriers Spirit and Frontier. One of the features of the ULCC model is “unbundled fares” which include few amenities or services in the base price.
The Spanish consumer protection ministry also says it has plans to ban outright some of the items it has fined the carriers for, such as charging extra for carry-on bags and for seat reservations for children traveling with their families. The fines were first announced in May following an investigation into the carrier’s practices, and are a dismissal of multiple appeals filed by the airlines in their defense.
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Ryanair CEO Michael O’Leary told the BBC that the fines weren’t legal, and that they’ve charged the fees in question for a long time. “Ryanair has for many years used bag fees and airport check-in fees to change passenger behavior and we pass on these cost savings in the form of lower fares to consumers,” he said.
It’s worth noting that the fees haven’t depressed passenger demand for the airline’s budget flights. Ryanair carried 182 million passengers in 2023—more than any other European airline.
The ministry said the fines were issued for violations in consumer rights, such as failing to be transparent about pricing, and providing other misleading information that prevented consumers from effectively comparison shopping for air travel. In the case of Ryanair, which was issued the largest fine the ministry took issue with the practice of charging for larger carry-on bags, seat selection, and charging a “disproportionate amount” to consumers who request a printed paper boarding pass at the airport. The ministry also took issue with some carriers not allowing cash payments at Spanish airports.
The fines were calculated based on what the ministry considered “illicit profit” from the fees. Ryanair received the largest fine, at €108M, dwarfing “second place” EasyJet’s €29M fine.
Ryanair, EasyJet, and Norwegian have said they will appeal to E.U. courts. Spain’s airline industry association will also appeal, saying the ministry’s ruling infringes on Europe’s free market rules, which allows airlines to compete based on market conditions. The ministry says its decision was based on Spanish and E.U. law.
Regulators have also stepped up enforcement of consumer protections in the United States. The US Department of Transportation recently issued a record fine against American Airlines for treatment of passengers with disabilities, and another against Lufthansa for discriminating against Jewish passengers. In the U.S., regulators have issued $225 million in penalties during the past four years alone, more than tripling the amount issued in the period from 1996 to 2020.
In both Europe and the United States, the airline industries are deregulated, meaning that airlines are free to charge whatever fares and provide whatever service they want, constrained only by the demands of the market. But on both sides of the Atlantic, governments have introduced consumer protections guarding how airlines provide service to passengers, particularly when their flights are delayed or canceled. There are also protections for families traveling with minors, passengers with disabilities, and rules requiring airlines to provide the full cost of a ticket early in the booking transaction.
The international air travel governing body IATA also condemned the Spanish decision, saying the move “undermines freedom of pricing which is fundamental to consumer choice and competition, a principle that has long been upheld by the European Court of Justice.”
