Spanish Government to pay airlines €720 million for Canary Islands resident flight subsidies
The Spanish Government will pay out €720 million in the coming weeks to settle part of its outstanding debt with airlines for subsidised flights connecting the Canary Islands and the Balearic Islands, with mainland Spain. However, airlines say the total amount still owed is much higher, between €300 and €500 million more.
According to the Ministry of Transport, most of the debt is with airlines that operate routes to and between the islands, including Iberia, Air Europa, Vueling, Ryanair, and Binter, as well as shipping companies such as Baleària and Naviera Armas, which run inter-island ferry services.
In the coming days, €319 million will be paid to cover pending amounts from 2024, approved under the recently enacted Air Navigation Law. A further €400 million is expected to be paid within weeks, with €350 million going to airlines and €50 million to ferry operators.
However, the Spanish Airline Association (ALA), which represents 70 carriers handling 85% of national air traffic, disputes these figures. It claims that subsidies accrued up to August already totalled €700 million, and estimates that the final figure for 2025 will reach between €1 billion and €1.2 billion.
Since 2018, residents of the Canary and Balearic Islands, as well as Ceuta and Melilla, have benefited from a 75% discount on air and sea travel within Spain. Airlines initially cover this reduction in ticket prices and are later reimbursed by the government through the Directorate General of Civil Aviation.
The cost of the subsidy has grown significantly over the years. In 2018, it amounted to €462 million, rising to €674 million in 2019 and €845 million in 2023, reflecting the recovery of air traffic after the pandemic. For 2024, the Ministry of Transport estimates the total at €1.03 billion, with €319 million still pending payment.
ALA has warned that continued delays in these payments could put pressure on air connectivity between the mainland and the islands, especially for routes vital to residents
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