IATA Slams Spain’s Decision on Cabin Baggage Fees and Airline Fines

Photo Source: IATA

The International Air Transport Association (IATA) has strongly criticized a recent decision by the Spanish government to override European law by banning airlines from charging passengers for carry-on cabin baggage and imposing fines totaling 179 million euros.

The policy targets four airlines — Ryanair, EasyJet, Vueling, and Volotea — penalizing them for practices deemed “abusive” by consumer advocacy groups like Facua. These groups have long argued that charging for cabin baggage and other add-ons, such as printing boarding passes at airports, infringes on consumer rights.

Industry backlash

IATA argues that the Spanish government’s decision undermines fundamental principles of consumer choice and competition, as protected by European Union law. According to the association, the move forces airlines to absorb cabin baggage costs into ticket prices, eliminating pricing flexibility for consumers.

IATA Director General Willie Walsh called the decision “appalling,” stating: “This is a slap in the face of travelers who want choice. Prohibiting all airlines from charging for cabin bags means the cost will be priced into every ticket. What’s next? Forcing all hotel guests to pay for breakfast? Or requiring everyone to pay for coat-check fees when purchasing concert tickets?”

Walsh emphasized that EU laws safeguard pricing freedom to ensure travelers can choose among service models ranging from all-inclusive to no-frills options. “This move by the Spanish government is unlawful and must be stopped,” he added.

Photo Source: IATA

Anti-consumer impacts

IATA contends that the policy limits consumer choice and undermines transparency. A recent survey conducted by Savanta for IATA, polling 500 respondents in Spain, revealed high levels of satisfaction with current airline services:

– 65 percent prefer paying the lowest possible ticket price and adding optional services as needed.
– 66 percent believe airlines provide sufficient transparency on fees.
– 78 percent find air travel offers good value for money.
– 74 percent feel well-informed about airline products and services.

These findings echo results from the European Commission’s Eurobarometer survey, in which 89 percent of travelers across Europe said they were well-informed about luggage allowances.

IATA stressed that ancillary revenues — generated from add-ons like baggage fees — are crucial to the low-cost carrier (LCC) business model, which has democratized air travel by offering affordable options for lower-income groups.

Operational costs of cabin baggage

Photo Source: IATA

IATA explained that handling cabin bags incurs operational costs, particularly through longer boarding times. Extended ground times reduce aircraft utilization, a key factor in airline profitability for short-haul flights. Adding 10–15 minutes for boarding can significantly limit the number of daily flights, affecting efficiency and revenues.

“Everyone paying more for less choice is the worst possible outcome that a regulation could deliver,” Walsh concluded.