Spain consumer regulator fines Ryanair for charging extra fees for hand luggage, seating

seekingalpha
2024-11-22

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Spain’s ministry of consumer affairs has fined several European airlines for “abusive practices” against passengers that included charging extra fees for hand luggage, and for adjacent seats to accompany dependent travelers.

The ministry categorizes these practices as “very serious” violations of consumer regulations pertaining to Spanish laws protecting consumers.

Of the five cited, Ryanair (NASDAQ:RYAAY) was hit with the heaviest fine of €107.8 ($114.5M), which includes not only a citation for charging extra for certain baggage and seating, but for charging a “disproportionate” amount for printing their ticket at the terminal.

The other carriers cited include Spanish carrier Vueling Airlines hit with a €39.3M fine, UK’s Easyjet (EZJ.L) for €29.1M, Norwegian Air Shuttle (OTCPK:NWARF) for €1.6M, and Spain’s Volotea for €1.2M.

The sanctions have been confirmed by Spain’s Minister of Social Rights, Consumption and Agenda, and has rejected the appeals subsequently filed by the carriers. The carriers are now prohibited for assessing the extra charges, and cannot mislead passengers regarding the extra fees by omitting information on their website or through third parties.

Similar to U.S. standards, European travelers are allowed a carry-on bag with a maximum size of 55cm x 40cm x 20cm with most legacy airlines without an extra charge, while budget carriers charge for a carry-on bag. This mirrors U.S. practices with carriers, such as Spirit Airlines (SAVE), Frontier Group Holdings (ULCC), and Jet Blue Airways (JBLU), charging extra for carry-on luggage (United charges for carry-on for basic economy).

Shares of Ryanair Holdings (RYAAY) are fractionally lower in premarket trading.

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