Spain has imposed fines of nearly $200 million against five low-cost airlines including Ryanair. A governing body has also ordered airlines to stop predatory practices in Spain.
Airlines, however, are arguing that these fines are illegal and plan to contest them in court.
The Bull Comes for European Airlines
Spain’s Ministry of Consumer Rights issued fines against five airlines on Friday worth a total of $186 million (€179 million).
These fines are for “abusive practices” of charging passengers for additional cabin luggage fees, seat selection in order to sit next to a friend or family member, rejecting cash payments, and not clarifying how passengers are getting charged on their websites.
Irish airline Ryanair received the brunt of these fines, subject to paying Spain over $111 million (€107 million). Spanish airline Vueling is facing fines of $40.7 million (€39.2 million). British airline EasyJet was hit with a $30.1 million (€29 million) penalty.
Spanish airline Volotea and Scandinavian airline Norwegian have received smaller penalties. Each received fines of a little over €1 million.
In addition, The Ministry has also ordered all airlines to discontinue charging passengers for these fees.
Airlines Fighting Back
The Association of Airlines (ALA) President Javier Gandara has called the fines “manifestly illegal”. Gandara had these words when speaking to CNBC:
“If implemented, the resolution of the Ministry of Consumer Rights would imply irreparable damage to [the] passenger, an attempt against their freedom to tailor their voyage depending on their needs, and an obligation to pay for services that they might not need.”
Ryanair CEO Michael O’Leary claims the fines are ‘illegal and baseless’ and would prevent the airline from giving out low travel fares to passengers. O’Leary responded to Fortune for comment:
“These illegal and baseless fines, [which] have been invented by Spain’s Consumer Affairs Ministry for political reasons, are clearly in breach of EU law.”
An EasyJet spokesperson also responded to reporters via email about the fines:
“We completely disagree with the decision of the Spanish Consumer Ministry and find the proposed sanctions outrageous.”
The Ministry previously imposed a fine in May against budget airlines, accusing them of ‘infringing on Spanish consumers’ rights’. This ruling followed an investigation that took place in 2023.
Airlines have two months to file an appeal before courts finalize and issue the penalties. As of now, the ALA, Ryanair, EasyJet, and Norwegian plan to appeal the new fines.
