EasyJet’s general manager in Portugal has issued a warning over new government proposals the carrier says will artificially inflate prices
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easyJet is weighing up plans to cut back operations in Portugal, according to reports emerging from the country. The airline’s general manager there has issued the warning amid a dispute over government proposals which easyJet claims will drive up costs for passengers.
José Lopes, easyJet’s general manager in Portugal, announced on Monday that the carrier may cut back its domestic services following the scrapping of caps on something called the social mobility allowance for air travel. This caps maximum fares for some local passengers – but the changes are set to affect the airline more widely.
“Removing the upper limit will artificially inflate prices,” José Lopes said. He argued that the measure will deliver “zero benefits” for island residents while helping to deter tourists, who makeup the bulk of passengers on domestic routes.
The airline says it will not return to operate Azores routes due to the changes. It had already confirmed its departure from the region from March 29, 2026, blaming a 35 per cent increase in airport fees and what it describes as government inaction.
The easyJet representative was addressing journalists at a press conference in Funchal, held in partnership with the Regional Secretariat for Tourism, to outline the company’s operations and long-term pledges in the Madeira archipelago, SIC Noticias reports. Portuguese media outlets report that at Porto Santo airport, the two existing routes to Lisbon and Porto will be retained, albeit with a reduction to Lisbon owing to constraints at that airport, he indicated.
He warned that if the measure to alter the social mobility subsidy regime – which would remove the maximum limits for air travel for residents of Madeira and the Azores – is implemented, there will be implications for Easyjet’s operations. “I hope that an analysis will be carried out and a way will be found to be more rational and less emotional in dealing with the matter,” he said.
When asked about the possibility of abandoning the route to Madeira, the official ruled out this scenario. Yet reports say he highlighted the possibility of “a reduction in market capacity.”
The changes were given the green light on Friday in the Assembly of the Republic, but have yet to come into force. The amendments stem from two initiatives to revise the legislation put forward by the Socialist Party and Chega.
What is the social mobility subsidy?
The social mobility subsidy set a maximum fare of €79 for residents and €59 for students travelling between Madeira and the mainland (round trip), with an overall cap of €400. In the Azores, residents travelling to the mainland pay no more than €119, while students are capped at €89, with a recently introduced maximum ceiling of €600.
The Portugal Post reports that Portugal Parliament’s recent decision to abolish price caps has placed island connectivity under serious threat, with easyJet warning of capacity reductions to Madeira and confirming it will not operate Azores routes under the new framework.
Ryanair has also revealed plans to cease all operations in the Azores on March 29, 2026, citing cost pressures.