Hungary imposes $779,464 fine on Ryanair for breaching consumer rights

Irish ultra-low-cost carrier Ryanair has been hit with a HUF 300 million ($779,464) fine by Hungarian authorities for breaching consumer rights.

A consumer protection probe of Ryanair, which was initiated by Hungary’s economic development minister Marton Nagy, concluded that the airline breached customer rights after it started passing on the cost of a special windfall tax on airlines to consumers, Reuters reported on August 8, 2022.

“The consumer protection authority has found a breach of the law today because the airline has misled customers with its unfair business practice,” Hungarian justice minister Judit Varga said in a post on social media.

Under the Hungarian government decree, airlines operating in the country are required to pay a HUF 3,900 ($10.11) tax for every passenger on every flight across state-members of the European Union as well as for those who travel to various destinations across 16 other countries, including Albania, Andorra, Bosnia, and Herzegovina, North Macedonia, Iceland, Kosovo, Liechtenstein and Moldova as well as Monaco, Montenegro, the United Kingdom, Norway, San Marino, Switzerland, Serbia, and Ukraine.

Meanwhile, airlines flying from Hungary to other destinations are obliged to contribute a HUF 9,750 ($25.27) tax per passenger.

Reuters also reported that Ryanair was ready to appeal against the fine.

The windfall tax on airlines, as well as on banks, insurance, retail, telecommunications, pharmaceutical, and energy companies was implemented by the local government in July 2022 in an attempt to strengthen the country’s budget.