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Flights between Alicante-Elche Airport and Spain’s Balearic and Canary Islands are under threat due to the central government’s delay in reimbursing airlines for resident travel subsidies.
Airlines cover 75% of ticket costs for island residents, but the government has failed to pay the €810 million owed to January 2025, forcing airlines to advance the money and endure financial strain. The Association of Airlines (ALA) warns this may lead to reduced flight frequencies or route cancellations, threatening island connectivity.
Demand for these routes has surged by 9.6% nationwide compared to 2023, with Alicante-Elche Airport seeing strong traffic growth.
In 2024, Palma de Mallorca became the second busiest domestic route (497,547 passengers, up 8.5%), Ibiza saw a 26% increase (176,592 passengers), Tenerife 19.9% (155,000 passengers), and Gran Canaria 39% (57,460 passengers).
Multiple airlines including Ryanair, Vueling, Air Europa, and Enter Air operate these routes.
The issue is worsened by delays in approving the General State Budget. While €560.81 million was initially allocated in 2023, higher-than-expected demand led to a shortfall despite an additional €170 million from the Contingency Fund.
ALA fears the total debt could rise to €1.5 billion, with only €60.8 million budgeted for 2025 while estimated expenses reach €1.2 billion.
Airlines act as intermediaries, applying the discount at purchase and receiving reimbursement after travel, but delayed payments from the Directorate General of Civil Aviation (DGAC) are compromising airline sustainability.
ALA urges prompt government action and realistic future budgeting if the subsidies ae to continue.
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