In the wake of a deadly high-speed train crash in the Spanish region of Andalusia on Sunday night, passengers have accused national flag carrier Iberia of price gouging people scrambling to find alternative ways to get between Madrid and Málaga and Seville.
Iberia and its wholly owned short-haul subsidiary, Iberia Express, have added hundreds more seats to accommodate the increased demand, and it appears that manual action has now been taken to bring prices down.
Iberia offers its condolences to victims of train crash
On Sunday night, at least 39 people were killed in a high-speed train crash on a key rail route that connects Southern Spain with the capital Madrid.
The accident occurred when the rear carriage of a high-speed train operated by the private company Iryo derailed and ended up on its side on the opposite track. A train heading in the opposite direction and operated by state-owned Renfe collided with the Iryo carriage and also derailed.
A major emergency response was launched after scores of passengers were killed and seriously injured. Officials have suspended all high-speed train services between Madrid and seven cities, including Córdoba, Seville, Malaga, Huelva, Cádiz, Algeciras, and Granada.
On Monday, Iberia issued a statement about the accident, saying: “From Iberia, we wish to extend our deepest condolences to the families and friends of the victims of the tragic train accident in Adamuz (Córdoba).”
“We also wish a speedy and full recovery to all those who have been injured.”
Passengers accuse airline of price gouging in wake of accident
Iberia and its rival Air Europa have bolstered services between Madrid and the region, adding at least 1,886 more seats as passengers who were booked to travel on high-speed train services scramble to find alternative ways to get to and from Madrid.
Iberia, in particular, is adding eight additional daily flights between Madrid and Málaga, which indicates the sheer scale of the disruption faced on this key route.
Passengers have, however, taken to social media to put Iberia on blast for what they describe as blatant price gouging, with some customers saying that flight prices between Madrid and Málaga have surged by 200%.
“You’re showing solidarity by putting flights to Malaga and Seville at €300,” one person wrote sarcastically in a post to Iberia on X on Monday.
In comparison, hours before the crash, flights were being sold on the same route for around €150 or less. To make matter wose, there is even higher than normal as there is a major tourism convention taking place in Madrid this week.
When computer algorithms go wrong
The likely reason behind the sudden price surge reported by some passengers is Iberia’s inventory management system, which would have automatically detected a spike in demand and raised prices without any human intervention.
It now appears, however, that Iberia has taken manual control of its booking systems and is selling one-way flights between Madrid and Malaga for €136 on Tuesday and €108 on Wednesday and Thursday.
In the opposite direction, one-way flights are now being sold for €128 on Tuesday and €100 for the rest of the week.
Bottom line
Spanish flag carrier Iberia has faced criticism for what some passengers have described as price gouging on key routes between Madrid and southern Spain. The price surge appears to have been caused by Iberia’s inventory management system, and prices are now being sold at comparable prices as rail tickets on the same route.
