Airlines Fined $187 Million for 'Abusive' Luggage Fees in Spain

• On Friday, the Spanish Ministry of Consumer Rights fined five low-cost airlines a total of €179 million ($187 million) for engaging in "abusive practices," including charging extra fees for cabin luggage.
• A 107.78-million-euro fine was imposed on Ryanair, which received the lion's share of the penalty.
• The Association of Airlines in Spain announced that it will challenge the fine for cabin luggage fees in court, stating that it is "illegal" and goes against European standards.

On Friday, the Spanish Ministry of Consumer Rights fined five low-cost airlines a total of €179 million ($186 million) for "abusive practices," including charging extra fees for cabin luggage.

Norwegian and Volotea were fined more than 1 million euros each, while Vueling paid 39.2 million euros and 29 million euros in penalties.

The ministry advised the five airlines to stop charging extra for cabin luggage and reserving seats near dependent travelers. Additionally, the airlines were criticized for their "excessive and abusive" ticket printing fees, allegedly not providing clear pricing information on their websites, and not accepting cash payments at Spanish airports.

The Association of Airlines in Spain (ALA) plans to challenge the fine for cabin luggage fees in court, claiming it is "illegal" and goes against European standards, as reported by CNBC.

According to a CNBC translation, ALA President Javier Gandara stated that if the resolution of the Ministry of Consumer Rights is implemented, it would cause irreparable harm to passengers, infringe on their freedom to customize their journey according to their needs, and obligate them to pay for services they may not require.

CNBC has reached out to the airlines for comment.

Ryanair announced it would challenge Spain's "illegal and unfounded" baggage fines, with CEO Michael O'Leary stating that the sanctions, which were created by Spain's Consumer Affairs Ministry for political reasons, are a clear violation of EU law.

The success of low fare airlines in Europe, including Ryanair, is attributed to Europe's Open Skies regime, which allows airlines to set prices and policies without government interference. However, this freedom has been threatened by illegal fines imposed on airlines, such as those recently imposed on Spanish airlines.

Norwegian will challenge the charge and collaborate with Spanish and EU authorities. Its baggage policy reflects its dedication to offering safe, affordable travel.

"The Spanish Consumer Ministry's decision to impose sanctions on EasyJet is unacceptable, according to the airline, which maintains that its cabin luggage policy complies with all applicable laws. EasyJet intends to challenge the decision through legal proceedings and defend its stance."

Budget airlines have been facing challenges such as higher fuel prices, global decarbonization, and geopolitical uncertainty after a long recovery from Covid-19 travel disruptions. Additionally, hold-ups in aircraft deliveries from American manufacturers, resulting in losses and delays, have impacted traffic growth rates. Ryanair downgraded its fiscal-year 2026 target to 210 million passengers from a previous projection of 215 million due to the delays.

Over the next five years, the low-cost carrier market is expected to expand at a rate of over 10% annually, according to a GlobalData report. The report highlights affordability as a top priority for these airlines, which implement cost-saving measures such as charging extra for baggage and in-flight meals.

The International Air Transport Association predicts that carriers, including non-budget airlines, will achieve a record-high revenue of $996 billion in 2024, representing a 9.7% increase from the previous year.