Hungary

Ryanair Slapped with HUF 200 Million Fine

Ryanair Ordered to Pay Fine for Consumer Protection Violations in Hungary

The Curia, or Supreme Court of Hungary, has upheld a decision made by the Government Office of Budapest, stating that Irish airline Ryanair must pay a fine of HUF 200 million (EUR 516,377) for consumer protection violations. According to Hungarian Nation, the office’s consumer protection authority conducted a procedure in April 2020 and found that Ryanair had failed to fulfill its supply and information obligations regarding the delay of a Budapest-Gran Canaria flight on February 18, 2020. In addition, the airline was found to have implemented unfair commercial practices.

Ryanair argued that the delay was due to refueling and lasted six hours at Liszt Ferenc airport. However, the government office’s role as a consumer protection authority is to safeguard passengers who have been treated unfairly by airlines. This is not the first time Ryanair has faced such accusations, as last year it was ordered to pay a fine of HUF 300 million (EUR 774,422) for defrauding consumers after a prolonged legal battle.

Furthermore, Ryanair has been engaged in a dispute with the Hungarian government over an additional tax imposed on airline tickets. The government’s Extra Profits Tax Decree 2022 stipulated that passengers would be charged an extra tax of HUF 3900 and HUF 9750 (EUR 10 and 25.2) per ticket. Ryanair decided to pass on this tax to its passengers, leading to condemnation from Economic Development Minister Márton Nagy, who deemed it unacceptable. The airline was subsequently subjected to a consumer protection investigation initiated by the Budapest government office.

Although the Budapest-Capital Regional Court overturned the HUF 300 million fine imposed on Ryanair, the Government Office requested a review of the case in June of this year. They argued that the airline’s decision to charge passengers the extra profit levy was unfair, thus justifying the fine.

This latest ruling by the Supreme Court affirms the Government Office’s decision to impose the HUF 200 million fine on Ryanair for consumer protection violations. The airline will be required to pay the specified amount.

 

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