Tensions between airlines and the Spanish government are escalating. The Airline Association (ALA) threatened on Wednesday to reduce flights to the Balearic Islands, the Canary Islands, Ceuta, and Melilla if the Ministry of Transport does not settle the approximately €300 million debt owed for resident discounts. After the government announced it would pay airlines €350 million for this purpose, the sector points out that an additional €300 million remains outstanding. In a statement, the ALA said it "welcomes the €350 million that will be used to cover part of the resident subsidies advanced by airlines in 2025." However, it emphasized that "at least an additional €300 million is still owed to cover the resident subsidies advanced by airlines for flights connecting the mainland with the Canary Islands, the Balearic Islands, Ceuta, and Melilla, as well as the interior of the islands."