In a landmark decision, a Portuguese court has ruled that charging passengers for cabin baggage is illegal. This ruling, which could have significant financial implications for low-cost airlines, is being hailed as a historic victory for consumer rights.

The Ruling

The Braga District Court in northern Portugal issued the ruling this week in a case brought by a Ryanair passenger who was charged €56.50 for a cabin bag. Judge Antonio Oliveira Mestre declared that airlines could not charge extra for bags measuring up to 55x40x20cm that fit in the overhead compartment, labeling it a “violation of consumer rights.”

Financial Implications

Otávio Viana, director of the consumer rights association Citizen’s Voice, estimated that the total damage caused to customers in Portugal by these extra fees could reach up to €10 billion. This ruling could set a precedent for other similar cases, potentially leading to significant financial repercussions for low-cost airlines.

Broader Impact

The decision is not entirely unprecedented within the European Union. A 2014 European Court of Justice ruling found that hand baggage must be considered a necessary item for passengers and cannot be subject to additional charges, provided it meets reasonable weight and dimension requirements.

The ruling affects several low-cost carriers popular among European travelers, including Ryanair, easyJet and Wizz Air.

In May, Spanish authorities fined Ryanair, easyJet, Vueling, and Volotea €150 million for violating customer rights by charging for larger carry-on luggage. The fine also covered charges for seat selection, printing boarding passes, and blocking cash payments.

European Parliament members have been advocating for standardized rules on cabin baggage across the 27-nation bloc. The latest ruling could accelerate these efforts, ensuring that hand baggage is universally recognized as a necessary item that should not incur additional charges.