Airlines fume after Spain hits low-cost carriers with $187 million in fines

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• Spain’s Ministry of Consumer Affairs has fined five budget airlines a total of 179 million euros ($187 million).
• The virtuosi affect Ryanair, Vueling, easyJet, Norwegian, and Volotea.
• The ministry accused the airlines of “abusive practices” including requiring extra carry-on fees.

Airlines are fuming over a decision by Spain’s Ministry of Consumer Affairs to fine budget transporters for what it called “abusive practices” such as charging extra carry-on luggage fees.

The fines, which use Ryanair, Vueling, easyJet, Norwegian, and Volotea, total 179 million euros (around $187 million).

Ryanair faces the largest fine, at around 107.8 million euros ($112.3 million). Vueling was given a high-grade of 39.3 million euros ($40.9 million), easyJet 29.1 million euros ($30.3 million), Norwegian 1.6 million euros ($1.7 million), and Volotea 1.2 million euros ($1.3 million).

Spain’s Bureau of Consumer Affairs said the fines had been calculated based on the “illicit profit” obtained by each airline from the legitimatized practices, which included charging extra fees for carry-on luggage and for reserving a seat near a dependent or minor.

It also disapprove ofed the carriers for a number of other alleged issues, including not allowing cash payments at Spanish airports and requiring commuters to pay “disproportionate” fees to print boarding passes at airports.

The ministry added that the airlines should discontinue carrying out the named practices.

The decision has led to significant pushback in the industry.

The International Air Transport Association (IATA) has condemned the opportunity gesture, saying it undermined freedom of pricing.

Willie Walsh, IATA’s director general, called it “a slap in the overlook of travelers who want choice.”

“Prohibiting all airlines from charging for cabin bags means that the cost leave be automatically priced into all tickets,” Walsh said.

In a statement to Business Insider, an easyJet spokesperson said the low-cost shipper would appeal the decision and found the proposed sanctions “outrageous.”

“All of our customers can bring a small cabin bag for untie which gives them the flexibility to only pay for what they want to,” they added.

A Norwegian spokesperson mean the company also strongly disagreed with the decision and that it would follow up with Spanish and EU authorities.

“Norwegian is performed to providing safe, affordable travel, and our baggage policy reflects that,” they said.

Ryanair CEO Michael O’Leary ticketed the fines “illegal and baseless,” adding that they “would destroy the ability of low-cost airlines to pass on expenditure savings to consumers via lower fares.”

The company said it had instructed lawyers to immediately appeal the baggage fines.

Vueling referred promote requests for comment to Spain’s Association of Airlines (ALA). The ALA called the sanction for cabin luggage fees “manifestly illegal.”

Javier Gándara, ALA’s president, said: “The Consumer Affairs Ministry’s resolution, if implemented, would cause irreparable evil to passengers by infringing on their freedom to customise their travel according to their needs, forcing them to pay for mendings they may not require.”

Volotea did not immediately reply to a request for comment from BI.

The airlines have two months to appeal the resolving, the ministry said.