Low-cost airlines at risk of losing billions after illegal practice is banned.

In a groundbreaking decision, a court in Portugal has declared the practice of charging passengers for cabin baggage to be illegal. This ruling is a major blow to low-cost airlines in Europe, who have been increasingly implementing this practice.

According to a consumer rights organization that has been supporting similar cases, this decision is historic and could potentially cost cheaper airlines an estimated €10 billion in Portugal alone. The case was brought to court by a passenger of Ryanair, who was charged €56.50 for bringing a bag with them on their flight. The Braga District Court, located in the north of the country, issued the ruling this week, citing a judgment from CNN Portugal.

Judge Antonio Oliveira Mestre stated that airlines cannot charge extra for bags that fit in the overhead compartment and have dimensions of up to 55x40x20cm. He deemed this practice a violation of consumer rights. As a result, the airline was ordered to reimburse the fee to the customer. However, the director of a consumer rights association, Citizen's Voice, believes that this decision could have far-reaching consequences and potentially cost airlines in Portugal a total of €10 billion.

This ruling is particularly significant for Australian travelers, as low-cost carriers such as easyJet and Ryanair are popular options for flights within Europe. The director of Citizen's Voice pointed out that while this is the first time a decision of this kind has been made in Portugal, it is not new in the European Union. He referenced a 2014 decision by the European Court of Justice.

He also mentioned that his organization is involved in seven other similar cases, and this ruling will set a precedent for those cases. When asked to comment, Ryanair did not respond to the request.

In a separate incident, Spanish authorities fined Ryanair, easyJet, Vueling, and Volotea a total of €150 million in May for violating customer rights when charging for larger carry-on luggage. This investigation was initiated in 2023 and applied to other charges such as selecting seats, printing boarding passes, and blocking cash payments. Consumer rights associations have also reported on these violations.

Members of the European Parliament have been advocating for standardized rules on cabin baggage across the 27-nation bloc, including recognition of the 2014 ruling. This ruling stated that a Spanish law forcing airlines to carry checked-in baggage without a surcharge was a violation of EU law. However, it also stated that hand baggage should be considered a necessary item for passengers. As a result, airlines cannot charge an additional fee for hand baggage as long as it meets reasonable weight and size requirements and adheres to security regulations.

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