Finance
Ryanair Denies Illegal Subsidy Deal With Azores Government in Portugal
Published by Global Banking & Finance Review®
Posted on March 19, 2026
2 min readLast updated: March 19, 2026
Quick Summary
Ryanair has denied any illegal subsidy deal with the Azores government following a police probe and reiterated it has no formal agreement, amid its planned withdrawal from the region due to high fees and canceled routes.
Ryanair Denies Illegal Subsidy Deal With Azores Government Amid Police Probe
Allegations and Investigation Into Ryanair and Azores Subsidy Deal
By Sergio Goncalves
Background of the Allegations
LISBON, March 19 (Reuters) - Ryanair has denied allegations that it received illegal subsidies from the Portuguese archipelago of the Azores as part of a deal to offset airport fees it pays in the islands.
Police Investigation Details
Portuguese police on Tuesday searched public entities and law firms in the Azores and Lisbon as part of a probe into whether the Azores struck an agreement with the airline that favoured it through the improper awarding of contracts to promote the region abroad, which investigators say may have served as a covert subsidy.
Ryanair's Response
Ryanair "does not have an agreement with the Azores," the Irish airline said in a statement late on Wednesday.
It said it had already announced in November that it would cancel its routes to the Azores, citing high fees imposed by airport operator ANA and a lack of government action.
Wider Context of Route Cancellations
Ryanair has cancelled routes in several European countries, including Spain, Austria and Belgium, over what it says are "excessive fees" levied by airport operators.
Details of the Alleged Scheme
Police said the alleged illegal financing could involve several crimes, including subsidy fraud and abuse of power by public officials.
Role of Intermediaries and Government Officials
Pedro Fonseca, deputy director of the criminal police, told TV channel RTP Acores that Ryanair may have received public subsidies since 2023 through fictitious financing contracts intended to offset airport fees in the Azores.
Private Association as Intermediary
The scheme involved a private association serving as an intermediary between the regional government and Ryanair, he said.
Government and Police Actions
A director at the department of planning and structural funds in the regional government said on Tuesday the searches targeted documents related to tourism promotion and that full cooperation with the police was being provided to "ensure maximum transparency in this process".
Police said five people had been formally charged, but did not identify them.
(Reporting by Sergio Goncalves. Editing by Charlie Devereux and Mark Potter)
Key Takeaways
- •Ryanair denies having any agreement with the Azores government, calling the subsidy allegations unfounded.
- •Police launched an investigation—Operation “Last Call”—into suspected covert subsidies via a tourism association, with five people formally charged.
- •Ryanair is withdrawing all Azores routes effective March 29, 2026, citing elevated airport fees, air navigation cost increases and new travel taxes.
Frequently Asked Questions about Ryanair denies illegal subsidy deal with Azores government in Portugal
1What allegations has Ryanair faced regarding the Azores government?
Ryanair is accused of receiving illegal subsidies from the Azores government to offset airport fees through covert funding agreements.
2How did Ryanair respond to the subsidy allegations?
Ryanair denied any agreement with the Azores and stated it canceled routes due to high airport fees and lack of government action.
3What actions have Portuguese authorities taken in the investigation?
Police searched public entities and law firms, focusing on contracts promoting the Azores abroad that may have served as subsidies.
4Have any individuals been charged in connection with the alleged subsidies?
Five people have been formally charged, but their identities have not been disclosed by authorities.
5Why did Ryanair announce route cancellations to the Azores?
Ryanair cited high airport fees imposed by operator ANA and lack of intervention by the Azores government as reasons for the cancellations.
