Spain faces EU clash over airline fines

Brussels and Madrid at odds over airline sanctions

by Lorraine Williamson
https://inspain.news

Spain’s attempt to defend air passengers’ rights has sparked a legal confrontation with Brussels. The European Commission has launched infringement proceedings against Spain after Madrid slapped a record €179 million fine on five airlines for charging passengers to carry hand luggage or to sit beside dependents.

What began as a domestic consumer rights issue has now escalated into a European power struggle over who controls the skies: national regulators or the single market.

The spark began with Spain’s crackdown on airline fees

The Spanish consumer authority Aesan targeted Ryanair, Vueling, EasyJet, Norwegian, and Volotea. It accused them of unfair practices by treating basic cabin luggage as an optional extra. Spain argued that such surcharges breach consumer rights and transparency standards. The decision was celebrated by consumer groups, long frustrated with what they call “drip pricing” in budget air travel — where the final fare grows with every click.

However, the EU’s executive arm sees things differently. Under Regulation (EC) No. 1008/2008, airlines operating within the European Union enjoy full freedom to set fares, provided conditions are made clear to passengers. By imposing fines, Brussels argues, Spain overstepped — curbing commercial freedom in a sector governed by EU-wide rules.

Brussels’ view is market freedom above all

In its formal notice, the European Commission accused Spain of violating the fundamental principle of fare freedom. It stressed that while hand luggage should “in principle” travel free, airlines retain the right to charge when baggage exceeds agreed limits on size, weight, or safety. For the Commission, this case isn’t about a suitcase — it’s about sovereignty over pricing in Europe’s liberalised aviation market.

Spain now has two months to defend its position. If no agreement is reached, Brussels could escalate the case to the Court of Justice of the European Union. This move could redefine the line between consumer protection and market competition across all member states.

Madrid’s defence: “Regrettable” interference

Spain’s Consumer Affairs Minister, Pablo Bustinduy, reacted sharply, calling Brussels’ decision “regrettable” and accusing EU institutions of ignoring citizens’ rights. For Bustinduy, the fines are a matter of principle — a statement that airlines must not exploit passengers under the guise of pricing freedom.

Supporters of the government argue that Spain is simply enforcing fairness in a market where “low-cost” often masks hidden fees. They say protecting consumers should take precedence over commercial autonomy.

How Europe’s hand luggage row began

The battle over hand luggage fees has simmered for more than a decade. It began when low-cost airlines such as Ryanair and EasyJet introduced stripped-down fares in the early 2000s. However, they charged separately for everything from seat selection to coffee on board. What was once a single all-inclusive ticket became a menu of extras.

As passengers complained that “cheap flights” were no longer so cheap, consumer authorities in several EU countries — including Italy and Spain — began investigating whether luggage surcharges violated travellers’ basic rights. In 2019, an Italian court briefly ruled against Ryanair, calling its hand luggage fee “an essential part of air transport.” Yet the decision was later overturned on the grounds of EU fare freedom.

Brussels has since struggled to find common ground between uniform market rules and the patchwork of national laws designed to protect consumers. The Spanish fines — and the European Commission’s swift backlash — have reignited a debate that never truly left the departure lounge.

Airlines fight back with Ryanair leading the charge

Budget carrier Ryanair has been quick to retaliate. The airline confirmed it will cancel several Spanish routes from January 2026. This includes flights to Vigo and Tenerife Norte, citing “anti-competitive interference” by Spanish regulators. It maintains that Spain’s decision violates EU law and undermines confidence in the single aviation market.

For travellers, the fallout may mean fewer connections and higher prices — an ironic twist in a battle fought, ostensibly, to protect consumers.

A test case for Europe’s aviation future

The dispute reaches far beyond Spain. It exposes a growing rift between member states seeking stronger consumer protection and EU institutions determined to preserve the principles of open competition.

As legal proceedings progress, the case could set a precedent for how far national governments can go to regulate multinational carriers. A ruling against Spain would reaffirm market freedom as paramount. A ruling in Spain’s favour could embolden other countries to take on low-cost airlines and redefine what “basic rights” mean in modern air travel.

The stakes ahead

At its heart, this clash pits two European ideals against each other: the right of consumers not to be exploited and the right of companies to compete freely. Whether Brussels or Madrid prevails, the outcome will reverberate across Europe’s airports — shaping how we fly, what we pay, and how far national governments can go to defend their citizens in a single market built on freedom of choice.

Sources: El Español, AS Diario

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