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

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

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

The fines, which affect 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 fine 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).

The decision has led to significant pushback in the industry.

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

Willie Walsh, IATA's director general, called it "a slap in the face of travelers who want choice."

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

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

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

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

"Norwegian is committed to providing safe, affordable travel, and our baggage policy reflects that," they said.

Ryanair CEO Michael O'Leary labeled the fines "illegal and baseless."

He said such fines "would destroy the ability of low-cost airlines to pass on cost savings to consumers via lower fares."

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

Vueling referred further requests for comment to the Asociación de Líneas Aéreas (ALA). BI has contacted ALA for comment. Volotea did not immediately reply to a request for comment from BI.

Spain's consumer affairs ministry said the fines had been calculated based on the "illicit profit" obtained by each airline from the sanctioned practices, which included charging extra fees for carry-on luggage and for reserving a seat near a dependent or minor.

It also criticized the carriers for a number of other alleged issues, including not allowing cash payments at Spanish airports and requiring passengers to pay "disproportionate" fees to print boarding passes at airports.

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

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