The Italian Competition Authority (AGCM) has launched a dialogue with the European Commission aimed at improving airfare transparency and strengthening competition in the air passenger transport sector, particularly on routes to and from Sicily and Sardinia.
This initiative follows a sector inquiry into airline pricing algorithms, which highlighted the persistent need for greater clarity in how airfares are presented to consumers. After publishing its Preliminary Report, the AGCM received observations from airline operators and other stakeholders, prompting a deeper review of market dynamics.
The inquiry underscored serious concerns about the transparency and comparability of air ticket prices and related services. Consumers often face substantial search costs due to the fragmented and opaque way prices are displayed, making it difficult to understand and compare the true cost of a flight. This lack of clarity can significantly impair consumers’ ability to make informed purchasing decisions.
One of the key challenges identified involves optional services—such as seat selection, carry-on baggage, and checked luggage—which are purchased by nearly half of all passengers. These extras can represent a substantial share of airline revenues. However, their pricing is frequently non-transparent or inconsistently disclosed, undermining price comparability across carriers.
Given the highly regulated nature of the aviation sector at the EU level—especially regarding fare transparency—the AGCM has initiated discussions with the European Commission to explore joint measures that could enhance the comparability of offers, including optional service pricing. The Authority believes that better comparability tools would reduce information asymmetries, boost consumer mobility, and drive competitive pricing across the industry.
By facilitating more informed consumer choices, the AGCM hopes to encourage airlines to engage in more direct price competition—not just on base fares, but also on the increasingly important ancillary services.
The AGCM’s push for reform reflects a growing awareness that today’s digital marketplace—shaped by complex pricing algorithms and extra fees—requires updated rules to ensure consumers see the real cost of flying and that airlines compete fairly.
