Airlines are within their rights to charge a supplement to passengers checking-in their luggage, a court has ruled.
The European Court of Justice ruled that airlines faced extra costs storing and processing checked-in luggage.
But it added that hand baggage was necessary for passengers and should not face a price supplement.
The decision is a boost to low-cost carriers that have made optional charges key to their business models.
The court upheld a challenge by Spanish budget carrier Vueling against a Spanish law that prohibits airlines from making people pay for putting their suitcases in the aircraft’s hold, the BBC reported.
The airline was given a €3,000 (£2,362) penalty by authorities in Spain for adding €40 to the basic price of four tickets bought by one passenger for return tickets between La Coruna in Spain to Amsterdam.
A Spanish court referred the case to Luxembourg to see if it complied with EU law on pricing freedom.