Spain's Volotea scraps Iran war fuel surcharge as regulators question policy

MADRID, June 10 (Reuters) - Spanish low-cost carrier Volotea will scrap its fuel surcharge policy for new bookings from June 10, it said, as regulators in Italy and Spain investigate whether the extra fees breach consumer protection rules.

• Volotea introduced the temporary response in March after the Middle East conflict drove up fuel prices.

• It said the challenges became more structural, requiring longer-term solutions, as energy markets have stayed elevated.

• The European Commission said in May that airlines are not allowed to impose additional fees retroactively.

• The temporary policy could allow for passengers to be asked to pay between €6 ($6.93) and €14 per person per flight extra, depending on Brent crude prices seven days before departure.

• Volotea said that 97% of affected passengers accepted the surcharge.

• Italy's competition authority opened an investigation into Volotea over alleged unfair commercial practices linked to the charges.

• In Spain, consumer group Facua urged the Consumer Rights Ministry to investigate.

• The European Consumer Organisation backed Facua's complaint, citing EU transparency rules requiring airlines to disclose all charges upfront.

• The company's head, David Gonzalez, said Volotea would continue to absorb fuel price increases and offer unlimited flexibility on all tickets at no additional cost.

• The airline confirmed that no flight cancellations were planned during the summer season.

($1 = 0.8657 euros)

(Reporting by Emma Pinedo; Editing by Barbara Lewis)