The Azores Regional Government has approved a payment of €42,839,848 (approximately $42.84 million) to SATA Air Açores, S.A., to restore the financial balance of its public service concession for regular inter-island air transport. The decision is outlined in Resolution No. 21/2026 of February 25, published in the Official Journal of the Autonomous Region.

According to the resolution, the authorized funds cover unforeseen costs and additional flights operated between November 1, 2024, and October 31, 2025—the fourth year of the concession contract. The extra flights were added to meet a surge in demand for inter-island travel, as passenger traffic significantly exceeded initial projections.

The Regional Government emphasized that during the fourth year of the concession, the carrier was compelled to operate additional flights in response to sustained growth in passenger numbers. The resolution notes that the number of passengers disembarking on inter-island flights has risen by approximately 82% compared to figures used during the preparation phase of the public service obligations. That increase, the government argues, placed operational pressure on the airline beyond what was originally contracted.

At the same time, the document highlights the impact of rising airport fees, higher fuel prices, and broader inflationary pressures. Under the terms of the public service obligation (PSO) agreement, the concessionaire is prohibited from unilaterally raising fares, as ticket prices are fixed within the framework of the contract.

The government also commissioned an independent assessment to calculate the financial losses incurred by the airline in providing public inter-island air service. That evaluation confirmed and quantified the existence of those losses, forming the basis for the authorized compensation.

In addition to approving the payment, the resolution delegates authority to the Regional Secretary for Tourism, Mobility and Infrastructure to execute the transfer, with the option of sub-delegation. It also ratifies prior administrative acts taken in connection with the financial rebalancing process.

The resolution takes effect upon publication and grants retroactive validation to previously executed measures tied to the financial adjustment.

In Diário dos Açores-Paulo Viveiros, director

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