IATA responds
The International Air Transport Association (IATA) has strongly condemned Spain’s decision to ban cabin baggage fees and fine five low-cost carriers a total of €179 million, claiming it violates European law and undermines consumer choice. IATA argues that the move, which forces airlines to include cabin baggage costs in ticket prices, disrupts the freedom of pricing upheld by the European Court of Justice.
Willie Walsh, IATA’s Director General, called the decision “unlawful” and detrimental to competition. “This is a slap in the face of travelers who want choice,” Walsh said, adding that it forces a one-size-fits-all model on airlines. He compared the decision to forcing all hotel guests to pay for breakfast, regardless of whether they want it.
What passengers want
IATA highlighted that independent polling of travellers shows strong support for the current system. According to the survey, 65% prefer low base fares with optional add-ons, and 78% believe air travel offers good value for money. Additionally, 74% feel well-informed about airline services and understand luggage allowances.
Interestingly, the overwhelming response on X.com came out in support of the airlines. While people dislike the extra charges they recognised that the low-cost model made are travel available to many more people.
Regulation not needed
IATA maintains that different airline models, from full-service to ultra-low-cost carriers (LCCs), reflect market demand and do not require regulation. Ancillary revenues, such as baggage fees, are crucial for LCCs, enabling them to offer lower fares and improve access to air travel for lower-income groups.
The association also noted that cabin baggage carries operational costs, primarily by increasing boarding times, which impacts flight schedules and profitability. Walsh warned that Spain’s regulation could lead to higher prices and fewer choices for consumers, undermining the very freedoms that foster competition and affordability in air travel.
IATA is urging Spain to reverse the decision to preserve pricing freedom and consumer choice in the aviation sector.
