ALA: Spanish Government owes airlines EUR680m for island route subsidies
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Background ✨
The Spanish Association of Airlines previously warned that the government's delayed reimbursement of advanced resident fare subsidies had left EUR425 million unpaid for 2024 as of mid Mar-2025, with the total debt potentially reaching EUR1.5 billion due to budget constraints. ALA cautioned that this ongoing issue could force airlines to reduce frequencies or suspend routes, thereby threatening regional connectivity and economic stability in the affected areas1 2.