Bus Service at Risk

Unpaid Funds

Formentera, June 27, 2026

Formentera’s public transport system is facing one of its most critical moments in recent years after the company operating the island’s scheduled passenger bus service warned that it can no longer continue covering operating costs. The situation comes just as the peak tourist season begins, when mobility on the island becomes strategically important for both residents and visitors.

Autocares Paya, the company responsible for the service, says it has spent several years covering expenses with its own resources that, it argues, should be the responsibility of the island administration. Delays in the payment of various financial compensations have now put the continuity of the service at serious risk.

The company says it has kept the bus network running despite its financial difficulties, even relying on bank financing and private funds to cover essential expenses such as staff wages and bus fuel.

Against this backdrop, the operator is calling on the Consell de Formentera to find an immediate solution to prevent the public transport service from being suspended during the busiest months of the tourist season, a particularly sensitive period due to the vehicle circulation restrictions in force on the island.

Unpaid Compensation Reported Since 2021

Autocares Paya explains that its financial problems stem from delays in receiving compensation linked to the free public transport scheme, a situation that began in 2021 and, according to the company, worsened following the institutional crisis experienced by the Consell de Formentera in 2023.
The family-owned company, which has been providing scheduled passenger transport services since 1945, says it has financed what is considered an essential service for the island’s mobility with its own resources throughout this period.
It also states that its bank has informed the company that extending its credit facilities is no longer a viable option, a development that severely limits its ability to continue advancing the costs associated with operating the service.

Staff Wages

The company’s owner explains that the lack of liquidity is already having a direct impact on employees. As an example, he says that drivers did not receive their May salaries until mid-June because the administration had not made the corresponding payments.
The company says it has committed every available resource to ensure that public transport continues operating. Measures taken include using its own funds and selling assets in order to cover priority expenses such as wages, fuel and other operating costs.
However, it warns that this financial capacity is reaching its limit and that there is a real risk it may soon be unable to meet the basic obligations required to keep the buses on the road.

An Essential Service

The warning is especially significant as it coincides with the busiest months of the year for tourism in Formentera. During the summer, the island limits the number of vehicles allowed to circulate, making public transport an essential alternative for getting around.
The company points out that, despite its financial difficulties, it has maintained the service without interruption to guarantee mobility for both residents and the thousands of tourists who visit the island each season.
If the situation is not resolved in the coming weeks, public transport could be seriously affected at one of the busiest times of the year.

Other Outstanding Payments

In addition to the compensation linked to free public transport, the company says it is still awaiting payment of other outstanding amounts, including economic rebalancing payments from previous financial years, pandemic-related aid, new compensation corresponding to 2025 and 2026, and other sums that have yet to be calculated.
The owner says all the necessary technical documentation and expert reports have been submitted to support these claims, but maintains that no definitive response has yet been received from the Consell de Formentera.
Autocares Paya insists that it is not seeking preferential treatment, but simply the payment of the amounts it considers outstanding for providing an essential public service.
Finally, the company warns that the continuity of public transport cannot depend indefinitely on the financial capacity of a private company to advance the costs of operating the service. If the administration fails to settle the outstanding payments, the company says it may be forced to suspend operations in the middle of the tourist season, with significant consequences for the mobility of both residents and visitors.