Air fares to and from Alderney will rise as Guernsey cuts its taxpayer subsidies.

Policy and Resources says subsidies for Alderney air links are on course to be £600,000 over budget this year.

£2 million is the current target under the existing public service obligation contract with Aurigny.

To tackle the overspend, fares on Alderney routes will rise by £5 each way with immediate effect.

From 1 January 2025, fares will increase further, while the annual amount P&R give will be cut to £1.5 million.

A statement says, to achieve the necessary subsidy reduction, fares would need to increase between £20-30 one way on all routes.

But the committee has directed that they should be applied primarily on the Alderney-Southampton route, to protect travel between the islands.

It says it has consulted with Aurigny before making this announcement, and has informed the President of Alderney's Policy and Finance committee of its position.

Deputy Jonathan Le Tocq, Minister for External Relations, says he knows the fare increases will not be welcome news to Alderney's community.

“It’s important that we strike the right balance between the cost of the subsidy on the taxpayer and the cost for those using the service.

"For 2024 this balance was outlined in the contract, with the target of a £2m subsidy, however, with this having increased by £600,000 it’s only right that we now take action to bring this back in line with the original target."

“In addition, we are all aware of the financial challenges facing our Bailiwick, and as such we have a responsibility to pursue future savings, as directed by the States.

"A reduction in subsidy of £500,000 is, we believe, appropriate and proportionate given the circumstances. We have sought to place a higher burden on fares between Alderney and Southampton to ensure we offer some protection to the Alderney-Guernsey route.”