Flying to Heraklion, Crete, on a budget? Let’s talk about baggage fees, fines, and the absurdity of flying cheap.
The Spanish government recently slapped EasyJet with a hefty €29 million fine for charging fees for hand luggage and seat selection. The penalty also roped in other budget airlines like Ryanair—topping the list with a gigantic €108 million fine—alongside Vueling, Norwegian, and Volotea. Spain’s consumer rights ministry called these fees unacceptable, sparking debates about airline policies.
EasyJet’s departing CEO, Johan Lundgren, wasn’t having it. He called the fines “illegal” and “anti-consumer,” arguing these paid perks give customers options. He claimed that offering passengers extras like hand luggage choices and seat reservations keeps base tickets cheaper. “This limits customer choice, which in turn means the base fare becomes more expensive,” Lundgren said.
Key points of the airborne drama:
- Spain fined EasyJet €29 million for hand luggage and seat fees.
- Ryanair faces an even larger €108 million fine.
- CEO Johan Lundgren calls the fines “anti-consumer” and vows to appeal.
A Fateful Year For Johan Lundgren
Lundgren, stepping down after a seven-year run, ends his tenure amidst a whirlwind of profits and fines. EasyJet recently posted a €731 million operating profit for its financial year ending on September 30—a 25% increase year-over-year but short of analyst predictions. Ancillary revenue, which includes hand luggage fees, seat reservations, and overpriced plane snacks, rose by 4%, hitting €29.35 per seat. “If people didn’t think the extras were worth it, they wouldn’t buy them,” he stated matter-of-factly.
Fine Now, Cry Later
The fine came at a time when EasyJet’s business was booming. Over 89.7 million passengers flew with the airline this past year, up nearly 7 million from the previous year. Vacation packages are also having a moment. EasyJet forecasted holiday customer growth of 25% next year. And for shareholders? They’re in for a treat with a proposed dividend boost to 12.1p per share, up from 4.5p in 2023.
Lundgren’s departure on January 1, 2025, opens the door for CFO Kenton Jarvis to take charge. Although Lundgren will stick around till May, the fine fiasco remains an unresolved issue.
For now, travelers to Heraklion might be wise to budget for baggage fees—or just chuck subtlety and wear their entire wardrobes onto the plane.