Spain Increases Reference Costs for Canary Islands PSO Flights

The Ministry of Transport and Sustainable Mobility has officially increased the reference costs for inter-island flights in the Canary Islands that are subject to Public Service Obligations (PSO). According to a recent order in the Official State Gazette, this change affects ten of the thirteen routes under this system.

The update, which raises reference prices by an average of 7%, impacts several connections involving Tenerife. These include flights from Tenerife North to Gran Canaria, Fuerteventura, El Hierro, Lanzarote, and La Palma, as well as the route between Gran Canaria and Tenerife South. It is important to note that these reference rates serve as a regulatory framework rather than fixed ticket prices. The final cost for passengers is still determined by airline pricing, booking times, and seat availability.

The PSO system was established in 2006 to ensure that essential but potentially unprofitable routes remain operational, keeping the islands connected. This adjustment aims to balance the financial needs of airlines with the public's need for travel. Importantly, the impact on residents is largely offset by the 75% state subsidy, which absorbs much of the price fluctuation.

Not all routes are affected by this change. The connections between Gran Canaria and La Palma, Gran Canaria and La Gomera, and Tenerife North and La Gomera will remain under their current pricing conditions.

Beyond the Tenerife routes, the adjustment also applies to flights connecting Gran Canaria with Fuerteventura, El Hierro, and Lanzarote, as well as the route between La Palma and Lanzarote. With this decision, the government is updating a transport model that has served as a vital link for thousands of residents for nearly twenty years, helping them access essential services, work, and family connections across the archipelago.