Budget airline Ryanair Holdings PLC (LSE:RYA) has been fined €765,000 for raising ticket prices in response to the Hungarian government's tax on "extra profits" of airlines, banks, and other industries.
Ryanair is to appeal against what it terms a 'baseless' consumer protection fine, saying, "No notice of any such fine has yet been received by Ryanair. If necessary, Ryanair will appeal this matter to the EU courts."
In May, Prime Minister Viktor Orban's government announced a tax on "extra profits" earned by major banks, energy companies and other companies reportedly in order to plug budget holes.
"The consumer protection authority has found a breach of the law today, because the airline (Ryanair) has misled customers with its unfair business practice," Justice minister Judit Varga said in a Facebook post.
"The wartime inflation and the wartime economic situation demand that whichever multinational company makes extra profit should take its share of the costs of protecting the public and defending the country!", wrote the minister.
The new levy involves a tax worth €10-25 on passengers departing Hungary from July.
Previously, Ryanair had called on Orban's government to scrap the "misguided" tax which it said would harm Hungarian tourism.
The airline has argued it will be forced to move capacity to countries working to restore traffic following the coronavirus pandemic as a result of the tax.