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Italy demands EU action against opaque airline pricing algorithms

Italy’s competition authority formally urged the European Commission to crack down on airlines’ opaque pricing algorithms, particularly targeting routes connecting Sicily and Sardinia to mainland Italy, Euractiv reported.

The Italian Antitrust Authority (AGCM), following a recent investigation, cited concerns that dynamic pricing algorithms and proliferating add-on fees make fare comparisons “nearly impossible” for consumers. These practices inflated final ticket prices by up to 400% above advertised base fares, disproportionately impacting Sicilian and Sardinian residents who increasingly abandon visits home due to unaffordable costs and damaging the islands’ tourism economies.

The AGCM’s appeal for EU-wide intervention comes amid broader efforts to enhance passenger rights. Last week, the European Parliament’s Transport Committee overwhelmingly endorsed reforms guaranteeing travellers the right to bring one small personal item and one cabin bag up to 7 kg onboard without extra charges.

Matteo Ricci, rapporteur for passenger rights enforcement, hailed the move as “a concrete step forward for air passengers’ rights in Europe,” condemning airlines’ “opaque commercial practices” with “hidden surcharges.”

Airlines’ algorithmic pricing strategies, adjusting fares based on real-time demand, browsing history, and purchase patterns, combine with ancillary fees for seat selection, priority boarding, and baggage to create what Agustín Reyna of consumer group BEUC calls “exploitative” conditions. Nearly half of all passengers incur these add-ons, which compound transparency issues.

While the new luggage rules aim to standardise hand baggage allowances across carriers, including budget airlines like Ryanair and EasyJet.

The European Parliament’s proposal also seeks to streamline compensation claims through standardised reimbursement forms and tighter regulation of intermediaries. Ticket vendors would be required to disclose all fees upfront and process refunds within 14 days, or face carrier liability after that deadline.

These measures now await final plenary approval and subsequent negotiations with member states.

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