Vueling warns delayed resident subsidy payments threaten flights for the Canary Islands
Spanish airline Vueling has warned that ongoing delays in receiving government payments to cover flight subsidies for residents of the Canary Islands and the Balearic Islands are putting flights for these regions at risk.
The airline says it has been facing months of delays in receiving these reimbursements, which are essential for maintaining the profitability of routes connecting Spain’s island territories with the mainland and with each other.
Sandra Hors, Vueling’s Director of Corporate Affairs, Brand and Sustainability, explained that airlines are currently being forced to temporarily absorb costs that should be covered by the state.
“We need to find a stable arrangement with the government so this doesn’t keep happening,” she said during a press conference.
Under Spain’s resident discount scheme, 75% of the ticket price for eligible passengers living in the islands is subsidised by the government. This means airlines only receive 25% directly from the passenger, and depend on the state reimbursement for the remainder.
“If I decide to operate a flight to the Canaries instead of Bilbao, the passenger only pays a fraction of the fare, the rest is paid by the government,” Hors explained.
Vueling has warned that if the payment delays continue, the airline may have to reconsider its flight schedules and route planning, potentially affecting the connectivity and competitiveness of the affected territories, a concern for both residents and domestic tourists alike.
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