IATA Slams Spain’s €179M Fines as Anti-Consumer and Unlawful

The Spanish government’s decision to impose record-breaking fines on five low-cost European airlines has sparked outrage with IATA.

On Friday, Spain’s Minister Pablo Bustinduy, responsible for Social Rights, Consumption, and Agenda 2030, signed off on €179 million ($187 million) in penalties for Ryanair, Vueling, EasyJet, Norwegian, and Volotea over alleged consumer rights violations. Ryanair, Europe’s largest airline by passenger numbers, was the subject of the highest fine at almost €108 million.

The violations include charging passengers for carry-ons, reserving adjacent seats for dependents, and other practices now deemed “abusive” under Spanish law. . The sanctions, initially announced in May, now prohibit airlines from continuing these practices.

The decision has been met with fierce criticism from the International Air Transport Association (IATA), the global trade group representing airlines. IATA condemned the move as anti-consumer, arguing that requiring airlines to include fees like cabin baggage in ticket prices will raise base fares for all travelers, even those who don’t use ancillary services.

“This is an appalling decision,” said Willie Walsh, IATA’s Director General. “Far from protecting consumers, this is a slap in the face for travelers who want choice. Forcing inclusions like bag fees into all fares removes flexibility and is akin to making hotel guests pay for breakfast or concertgoers pay for coat-checks regardless of need.”

IATA also emphasized that pricing freedom is a principle of consumer choice and competition and is then protected under European law. Walsh and IATA now want the European Commission to intervene.