The air connectivity between the Balearic Islands and the mainland is in a critical situation due to the Government’s debt to airlines operating these routes. As of January 2025, the Executive owes €810 million to airlines for the 75% subsidies on tickets for residents of the Balearic Islands, the Canary Islands, Ceuta, and Melilla, an amount that could soar to €1.5 billion if no measures are taken, according to the Airline Association (ALA) in a statement. This situation puts the continuity of many routes at risk, which could lead to a reduction in frequencies or even the cancellation of flights, directly affecting residents who would have fewer transport options and possibly higher ticket prices.

Airplane

Airlines, acting as intermediaries by applying the discount to ticket prices and subsequently claiming the amount from the State, warn that the lack of payment is jeopardising the viability of many routes. In the case of the Balearic Islands, connectivity with the mainland has grown significantly in recent years, with 55 million seats offered in 2024, representing a 6% increase compared to 2023 and a 12.85% rise from 2019. However, this expansion could be compromised if the debt continues to rise, warns ALA.

Insufficient budgets

The issue lies in the fact that the General State Budgets (PGE) allocated for these subsidies have been insufficient. In 2023, €560.81 million was assigned, an amount that was rolled over into 2024 and 2025, despite the fact that the actual demand has far exceeded this figure. Even with an additional €170 million through the Contingency Fund, the funds have not been enough, leaving airlines in a state of financial distress.

The president of the Airline Association (ALA), Javier Gándara, has warned that if this issue is not resolved, airlines may be forced to reduce frequencies or cancel routes, severely affecting connectivity in Balears and other extra-peninsular territories such as the Canary Islands, Ceuta, and Melilla. Additionally, the lack of liquidity is also harming travel agencies, which depend on the payment of management fees for subsidised tickets.

Gándara has urged the Government to pay the outstanding amounts as soon as possible and to rectify the situation in upcoming budgets with more realistic allocations to prevent further defaults. If the situation does not change, airlines anticipate that in 2025 they will face even more payment delays, as the allocated amount of €560.8 million will fall far short of the estimated expenditure of €1.2 billion, not including the unpaid debts carried over from 2024.