The future flights connecting the Canary Islands, Balearic Islands, Ceuta, and Melilla to mainland Spain is under threat due to the government’s failure to pay airline subsidies for resident discounts.
Airlines have warned that the ongoing non-payment could lead to reductions in flights or even the suspension of certain routes.
The Association of Airline Companies (ALA) has reported that as of January 2025, the government owes airlines a total of €810 million. These funds were advanced by airlines to cover the 75% discount on ticket prices granted to eligible residents of the Canary Islands and Balearic Islands.
The ALA has described the situation as financially unsustainable, warning that if no action is taken, the total debt could rise to €1.5 billion by the end of this year. This concern is heightened by the fact that the government is operating under an extended national budget, which limits financial flexibility.
The association has criticised the government for delaying subsidy payments throughout 2024, leading to a significant increase in the amount owed to airlines providing these essential routes. According to ALA, the Spanish government had allocated €560 million in its 2023 budget for air traffic subsidies. However, demand for the discount has far exceeded this allocation, contributing to the growing financial shortfall.
To mitigate this, an additional €170 million was assigned from the Contingency Fund to adjust the budget, but the ALA insists that this measure has fallen short. Airlines are still waiting for hundreds of millions of euros in outstanding payments to cover the advance payments they have made on behalf of the government.
Despite financial pressures, air connectivity in these regions has been increasing. The ALA reports that the number of available seats on flights between the Canary Islands and mainland Spain reached 61.81 million in 2024, reflecting a 9.6% rise compared to 2023 and an 18% increase from 2019 levels.
Similarly, routes between the Balearic Islands and the mainland saw 55 million seats available in 2024, marking a 6% increase from the previous year and a 12.85% rise compared to 2019.
The ongoing dispute over subsidy payments raises concerns about the sustainability of these vital connections, with airlines urging the government to resolve the financial impasse to prevent potential disruptions to flight services.
