Domestic flights in Majorca and the Canary Islands could be in jeopardy (Image: Getty)
The future of flights connecting the with the and mainland 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 certain routes being suspended and reductions in other flights, which could severely impact tourism and risk popular tourist hotspots being isolated.
The Airlines Association (ALA) said the government owes £680 million (€810 million) to the airlines that operate routes to the , the , Ceuta and Melilla to cover for the 75% discount for island residents. Now, the ALA, who has described the situation as financially unsustainable, has issued a warning that this debt could increase further to a whopping £1.2 billion (€1.5 billion) by the end of the year.
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The connectivity of the Canary and Balearic Islands could ‘be seriously compromised’ (Image: Getty)
Airlines are now in a situation of ‘unsustainable economic asphyxiation’ as they consider axing certain routes.
President of the Tourism Board, Juan Molas, warns that if the government continues in failing to make payments, the connectivity of the Canary and Balearic Islands “will be seriously compromised” because “there will be a substantial cut” in the number of flights available.
Mr Molas warns this will have a “very damaging” impact on tourism in Majorca and the Canary Islands who rely so heavily on tourism.
In 2023, the overall tourist spending in the Balearic Islands was £14.8 billion while in the same year the Canary Islands saw a record-breaking year for tourism, with foreign tourists spending over £17 billion. The sector contributed around 35% to the region’s GDP.
Airlines are considering axing certain routes (Image: Getty)
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The ALA has criticised the government for delaying subsidy payments throughout 2024 with airlines waiting for hundreds of millions of euros in outstanding payments to cover the advance payments they have made on behalf of the government.
The government allocated £470 million in the general state budget for 2023 in subsidies for regular air travel for residents from outside the mainland. To this amount an additional £140 million was assigned from the Contingency Fund to adjust the budget, but the ALA insists that this measure has fallen short and “is still not enough”.
The ongoing dispute over subsidy payments raises concerns with airlines encourging the government to resolve the issue as soon as possible to prevent disruptions to future services.