Spain has fined five budget airlines, including Ryanair, a total of €179m for charging passengers for hand luggage and seat reservations, prompting the Irish carrier to say banning the practices would “destroy” the ability to offer cheap tickets.
Spain’s Consumer Rights Ministry announced the sanctions on Friday, with Ryanair given the biggest fine, of €108m, and easyJet a penalty of €29m.
Vueling, the low-cost operation of the British Airways owner IAG, has been fined €39m, and Norwegian Airlines and Volotea have been fined €1.6m and €1.2m respectively.
The ministry is upholding fines announced in May after dismissing appeals lodged by the low-cost airlines. Ryanair said it had instructed lawyers to appeal against what it called the “baseless” fines.
The airline said the practices are permitted under European legislation, and that banning them would “destroy” the ability of low-cost operators to pass on cost savings to consumers through cheaper-priced fares.
Michael O’Leary, Ryanair’s chief executive, said:
“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.”
O’Leary said the laws used to levy the fines were based on “ancient 1960s” legislation that pre-dated Spain joining the European Union.
“The success of Ryanair and other low-fare airlines in Spain and across Europe in recent years is entirely due to Europe’s Open Skies regime and the freedom of airlines to set prices and policies without interference from national governments which is what today’s illegal Spanish fines are,” O’Leary added.
A spokeswoman for easyJet said the airline also intends to appeal to the courts and will “vigorously defend” its position.
“We completely disagree with the Spanish Consumer Ministry and find the proposed sanctions outrageous,” she said. “We consider our bag policy to be in line with all applicable laws, and as such there is no change to our current cabin bag policy.”
EasyJet allows flyers to bring a small cabin bag for free, which she said “gives them the flexibility to only pay for what they want to”.
The Spanish Airlines Association (ALA), which represents airlines carrying 85% of air traffic to and from Spain, has previously said that the fines are “disproportionate”. On Friday, the association said it intends to appeal against the fines through the court system.