Parliament Scraps Flight Price Caps for Azores and Madeira — PSD Government Left Isolated in Vote

Portugal's parliament voted on Thursday to strip two controversial restrictions from the social mobility subsidy that helps residents of the Azores and Madeira afford flights to the mainland — leaving the governing PSD isolated in opposition to a measure backed by almost every other party in the chamber.

The changes, which passed in a final vote with support from PS, Chega, Livre, Bloco de Esquerda, PAN, and the Azores-based JPP, remove a ceiling on eligible ticket prices and eliminate a requirement that beneficiaries prove they have no outstanding debts to the tax authority or social security.

What Has Changed

The mobility subsidy, created in 2015 under a PSD government, reimburses island residents for a portion of the cost of flights between the autonomous regions and the mainland. In September 2024, the Montenegro government introduced price caps: EUR 400 per ticket for Madeira (EUR 500 from Porto Santo), and EUR 600 for the Azores. Tickets above those thresholds were simply ineligible for the subsidy.

A further restriction, implemented in January 2026, required applicants to demonstrate a "regular status" with the Tax Authority and Social Security — effectively barring anyone with outstanding debts from accessing the benefit. Regional governments objected immediately, and the rule was suspended before it could be fully applied.

Both restrictions have now been removed by parliamentary vote.

PSD Isolated, Island Deputies Break Ranks

The PSD parliamentary group voted against the changes, but six of its own deputies from the islands broke ranks to vote in favour. CDS-PP, Iniciativa Liberal, and PCP abstained. The result marks a rare and significant political defeat for the minority government on a high-profile policy affecting the autonomous regions.

PSD deputy Alexandre Poço warned that removing price caps could "increase travel prices," arguing that airlines would raise fares knowing the state would cover any cost. Socialist deputy Francisco César countered that the approval "corrected an error" and restored the rights of Azorean and Madeiran citizens.

Why It Matters

Air connectivity is an existential issue for the autonomous regions. Unlike mainland residents, islanders have no alternative to flying for most travel to the rest of Portugal. The subsidy is widely seen as a basic instrument of territorial cohesion — the principle that citizens should not face disadvantage based on where they live.

The price caps had drawn particular anger in the islands, where residents argued they were being penalised for the high cost of flights they had no power to control. Consumer groups pointed out that during peak holiday periods, fares routinely exceed the caps, leaving families to absorb the full cost of travel.

The government now faces a choice: accept the parliamentary decision or attempt to find a legislative workaround. With its own island deputies voting against the party line, the political space for resistance appears limited.