EasyJet earns a record $4.5 billion from fare add-ons as CEO criticizes ‘unfair’ penalty on the practice.
EasyJet reported £3.59 billion ($4.5 billion) in revenue from flight and holiday add-ons like extra baggage in the year to October, a 22% increase from the previous year. The airline’s ancillary revenue from flights reached a record £2.46 billion. As airlines face competition to keep base fares low, they have increasingly relied on add-ons for profit.
However, EasyJet’s CEO Johan Lundgren criticized a recent fine imposed by Spain’s Ministry of Consumer Rights, which penalized several low-cost carriers, including EasyJet, for practices like charging extra for hand luggage and reserving adjacent seats. EasyJet was fined 29 million euros. Lundgren argued that the fine was unjust, claiming it goes against European law and is unfair to customers who choose to pay for additional services. The airline, along with others, plans to dispute the penalty.