The International Air Transport Association (IATA) has expressed strong opposition to Spain’s decision to eliminate cabin baggage fees and impose EUR 179 million in fines on airlines. The organization called the move unlawful and warned it would undermine pricing freedom, a key principle protected under European law.
Willie Walsh, IATA’s Director General, criticized the decision, stating, “This is an appalling decision. Far from protecting the consumer interest, this is 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. What’s next? Forcing all hotel guests to pay for breakfast? Or charging everyone to pay for the coat-check when they buy a concert ticket?”
Impact on Consumers and Competition
IATA emphasized that this policy harms consumer choice and value for money. A recent poll conducted by Savanta for IATA revealed that 65% of travelers in Spain prefer low ticket prices with optional services, while 66% found airline fees for travel options transparent. Additionally, 78% of respondents considered air travel to be good value for money, and 74% felt informed about the products they purchased.
These findings align with a Eurobarometer survey from the European Commission, which indicated that 89% of European travelers felt well-informed about luggage policies. The diversity in airline service models, from full-service carriers to low-cost airlines, reflects consumer demand and should not be undermined by government regulation, according to IATA.
Walsh stressed the importance of preserving this flexibility, stating, “EU Law protects pricing freedom for good reason. And airlines offer a range of service models from all-inclusive to basic transport. This move by the Spanish government is unlawful and must be stopped.”
This decision marks Spain’s second attempt to regulate cabin bag fees, despite a prior ruling against such measures. In 2010, Spain tried to enforce similar restrictions based on Article 97 of Spanish Law 48/1960, a regulation dating back to the country’s fascist era. The European Court of Justice (ECJ) struck down the attempt, citing Article 22 of EU Regulation No 1008/2008, which guarantees pricing freedom.
IATA argues that the latest action, which prioritizes Article 47 of Spain’s General Law for the Defense of Consumers and Users, again conflicts with EU law. Walsh added, “They failed once, and they will fail again. Consumers deserve better than this retrograde step which ignores the realities of today’s travelers.”
Operational and Economic Implications
Charging for cabin baggage, according to IATA, addresses operational costs. Allowing passengers to carry unchecked baggage prolongs boarding times and reduces the number of flights that airlines can operate daily. Walsh warned, “Everyone paying more for less choice is the worst possible outcome that a regulation could deliver.”
Spain’s tourism sector, which contributes nearly 13% of the country’s GDP, relies heavily on air travel, with 80% of visitors arriving by plane. Affordable airfares, made possible by low-cost carriers, have played an essential role in this growth. IATA called on the European Commission to defend its pricing laws to protect consumer benefits.
Spain’s decision could disrupt the economic and operational balance achieved through flexible pricing policies, impacting both airlines and consumers. IATA continues to advocate for pricing freedom as a cornerstone of competitive and consumer-focused air travel.
