Ryanair has been slapped with a massive €256 million fine by Italy's competition watchdog for deliberately obstructing online travel agencies from selling its flight tickets. The ruling comes even as the budget carrier achieves a record market valuation of €31 billion.
An 'Abusive Strategy' to Control Sales
The Italian Competition Authority (AGCM) stated on Tuesday that Europe's largest airline implemented what it called an 'abusive strategy' between April 2023 and at least April 2025. The authority found that Ryanair used its dominant position to create technical hurdles, making it excessively difficult for third-party agents and their customers to complete bookings.
The goal, according to the regulator, was to force sales directly through Ryanair's own website. Tactics allegedly included intermittently blocking booking attempts, obstructing payment methods, and mass-deleting travel agency accounts. The airline also rolled out additional verification steps, like facial recognition, for tickets bought via agents, citing security reasons.
O'Leary's War on 'Pirate' Agents and the Cost to Ryanair
The fine is the culmination of a long-running campaign by Ryanair's outspoken CEO, Michael O'Leary, against online travel agents (OTAs) like Booking.com, Kiwi, and Kayak. O'Leary has repeatedly labelled them 'pirate' agents, accusing them of scamming consumers with hidden fees and mark-ups on airfares.
His aggressive stance came at a short-term cost. When Ryanair abruptly pulled its flights from many agent websites in late 2023, it led to a noticeable drop in ticket sales. This dip contributed to a dent in the airline's profits, as O'Leary was willing to accept lower sales volumes to break the agents' influence.
Record Valuation Amidst Legal Turmoil
Despite the financial penalty and previous profit impacts, Ryanair's market fortunes have soared. The airline recently reached a record valuation of €31 billion (approximately £27 billion), cementing its status as the world's second most valuable airline, trailing only US giant Delta Air Lines.
Michael O'Leary, known for his combative style, plans to step down within the next five to ten years. He stands to receive shares worth €111 million if he remains CEO until July 2028. O'Leary was swift to condemn the Italian ruling, calling it 'an affront to consumer protection and competition law' and vowing an immediate appeal.
'Ryanair looks forward to successfully overturning this legally flawed ruling and its absurd €256m fine in the courts,' he said. The airline argues that its direct-sales model saves consumers around 20% on fares.
The AGCM, however, concluded that Ryanair's actions illegally stifled competition, particularly by preventing agents from offering Ryanair flights in combination with other airlines or travel services. It was only in April of this year that Ryanair began allowing agencies to properly link with its booking systems.
