The Spanish Ministry of Consumer Affairs has expanded its investigations into low-cost airlines and initiated proceedings against a sixth airline for controversial pricing practices. The criticism centers on additional charges for larger hand luggage, seat selection, and printing boarding passes.
The airlines are also accused of not accepting cash payments at check-in counters or for on-board purchases. This latest move follows fines totaling €179 million already imposed on five other airlines. While three of these airlines—Ryanair, Norwegian Air, and Vueling—have successfully suspended the fines in court, the conflict between consumer protection and the business models of low-cost carriers remains a key challenge for the aviation industry and travelers in Europe.
The core of the controversy: fees for supposedly basic services
The practice of charging additional fees for services once considered an integral part of an airline ticket has become established among many low-cost airlines in recent years. The Spanish Ministry of Consumer Affairs is now increasingly targeting these business models. Specifically, the following controversial fees are at issue:
- Fees for larger hand luggage: Many low-cost airlines only allow one very small piece of personal luggage (often a small bag or backpack) free of charge, which must fit under the seat in front of them. They charge additional fees for larger carry-on items that would fit in the overhead compartments. This often leads to confusion and frustration for passengers who are faced with unexpected costs at the airport. The European Parliament recently advocated for an EU-wide rule that would always allow one small piece of carry-on luggage free of charge and is pushing for binding regulations.
- Seat selection fees: The freedom to choose your seat is an important consideration for many travelers. Low-cost airlines often charge a surcharge for this, especially if passengers request adjoining seats or prefer aisle or window seating. This can result in significant additional costs for families with young children, for example, who want to ensure they sit together during the flight.
- Fees for printing boarding passes: In the age of digital boarding passes via mobile apps or online check-in, this may seem antiquated, but for travelers without a smartphone or internet access, printing a boarding pass at the airport can result in significant additional charges. This practice is often criticized as a punishment for passengers without digital tools or skills.
Another point of criticism raised by the ministry is the refusal of some airlines to accept cash payments at check-in counters or for in-flight purchases. This excludes certain segments of the population who do not have credit cards or prefer to pay with cash, limiting consumer choice.
Penalties imposed and legal disputes
The Spanish Ministry of Consumer Protection has already imposed fines totaling €179 million on five airlines. The affected airlines are Ryanair, Norwegian Air, Vueling (an IAG subsidiary), EasyJet, and the private airline Volotea.
However, the legal battle over these fines is not over yet. A Spanish court has provisionally suspended the fines imposed on three of these airlines – Ryanair, Norwegian Air, and Vueling. These airlines have filed appeals against the ministry's decisions. This means that the proceedings could take months, the ministry announced. While the legal proceedings are ongoing, the five airlines already fined are allowed to continue charging for larger hand luggage and seat selection, further increasing consumer frustration.
The Spanish airline association, ALA, and Ryanair have rejected the imposed fines as "unfounded." They argue that these practices are common in most European Union countries and therefore do not constitute a violation of customer rights. Ryanair CEO Michael O'Leary has repeatedly emphasized that revenue from such ancillary services is an integral part of the business model of low-cost airlines, allowing consumers to choose lower base fares and pay only for the services they actually want to use. However, this argument contradicts the demand for transparency and fair pricing.
International dimension and precedents
The baggage fee dispute is not limited to Spain. It is a Europe-wide phenomenon that is occupying regulators and courts in several countries.
As already mentioned, the European Parliament has called for an end to the charging practice. This demonstrates a clear political trend at the European level to strengthen consumer rights in this area. Last November, members of the Transport Committee voted overwhelmingly in favor of a proposal to prohibit airlines from charging passengers additional fees for hand luggage. Such an EU-wide regulation would create a uniform standard and end the current "patchwork" of differing baggage rules.
Similar legal disputes have occurred in other countries. In Italy, Ryanair was fined by the competition authority AGCM in 2018 for charging fees for larger pieces of hand luggage. However, this ruling was later overturned by an administrative court. In Germany, the Berlin Regional Court dismissed a lawsuit brought by the consumer protection agency against Ryanair in 2023, challenging the seat selection fee. The court ruled that the airline was entitled to charge this fee because it allowed passengers to freely decide whether to choose a specific seat or accept random assignment. These differing rulings in different European countries highlight the legal uncertainty and the need for clear EU-wide regulation.
The European Commission has also addressed the issue and announced an initiative to revise the Air Passenger Rights Regulation in 2023, which will also include the issue of hand luggage fees. The European Consumer Organisation BEUC has filed an official complaint with the European Commission against several airlines, including Ryanair, EasyJet, and Wizz Air, regarding their hand luggage policies. This demonstrates the coordinated pressure being exerted on the airlines.
What do the investigations mean for travelers?
As long as the legal proceedings are ongoing and no binding EU-wide regulations come into force, the affected airlines can continue their charging practices. This means that travelers must continue to carefully check what services are included in their flight ticket and what additional charges may apply for baggage or seats.
If the Spanish courts uphold the fines against the airlines and pressure from the EU Parliament leads to new legislation, this could have far-reaching consequences for the business model of low-cost airlines. A loss of revenue from carry-on baggage fees would force airlines to rethink their pricing strategies. This could lead to higher base fares or the airlines finding other ways to compensate for the lost revenue, for example, by charging higher prices for other ancillary services or reducing service.
For consumers, an EU-wide regulation requiring free hand luggage would mean greater transparency and predictability. They would be able to compare prices more easily and would not have to worry about hidden costs. The developments in Spain are therefore an important indicator of the direction in which air passenger rights in Europe could develop. It remains to be seen how the legal proceedings and political negotiations at the European level will develop.
A complex field of tension in European airspace
The expansion of the Spanish Ministry of Consumer Affairs' investigation into a sixth low-cost airline for controversial charging practices underscores an ongoing tension in European aviation. Courts and legislators are attempting to strike a balance between airlines' efforts to optimize their business models and demands for greater consumer protection and price transparency. Although the legal battles are still ongoing, the pressure on airlines is palpable. The EU Parliament's decision to make a free piece of hand luggage mandatory could be a game changer and significantly impact the future of travel in Europe. For travelers, the hope for clearer and fairer rules remains in sight.