New adjustments to the Alicante-Madrid high-speed corridor and price reforms underway
The transport ministry has scaled back the AVE line that previously connected Alicante with Madrid. As part of this shift, ticket prices for high-speed trips could drop by as much as half, with the new pricing taking effect from September in regions including Castilla y León and Aragón. The package also makes multi-ride Suburban-Media Distance subscriptions free for routes such as Alicante-Murcia, and offers a 50% discount on Avant trains and certain AVE services in Castilla y León and Aragón. The overall fiscal impact of these measures is projected at 231 million euros, with 201 million euros tied to the discount, plus 1.9 million for Avant-related savings and 27.8 million for implementation costs.
Average Madrid-AVE fares hover around 60 euros, though some tickets in peak periods can exceed 100 euros, particularly for routes between Madrid and Alicante. Officials justify the differential by noting that the Madrid-Alicante corridor sees substantial tourist traffic, which influences pricing dynamics and service patterns.
A fresh plan to offset the transfer of services to Chamartín: a direct AVE link from Alicante to Barajas in 2024
There are nuances to the rationale. While peak tourist seasons drive much of the traffic, roughly half of all trips between the province and Madrid are undertaken for work or education throughout the year. Travelers heading Madrid-Alicante often face challenges in obtaining a ticket, especially on Fridays and Sundays, highlighting persistent demand pressures.
Since Renfe’s higher-speed services reached scale, about 11.7 million travelers used AVE and Alvia trains in the Madrid-Cuenca-Albacete-Villena-Alicante corridor during the first six years of operation before 2019. The Covid-19 disruption paused services in 2020, with a gradual recovery beginning in 2021. Point-to-point journeys between Madrid and Alicante remain among the most requested, accounting for a dominant share of total passengers.
Pre-pandemic figures show more than 2 million annual passengers on Madrid-Alicante high-speed routes, with 1.7 million customers recorded in some periods. On certain days, AVE services between Madrid and Alicante have seen as many as 7,100 travelers, with Thursdays and Fridays historically registering the highest demand due to a mix of business and leisure travel. Easter periods have produced record train counts.
When can travel from Alicante to Madrid begin at discounted fares as low as 9 euros?
Dispute and perspectives on policy impacts
Nuria Montes, general secretary of Hosbec, questions whether AVE should be included within the rail services package. She argues that while the decree aims to curb inflation and balance costs, it may appear biased if travelers from Aragon can access cheaper fares than those from Alicante, Albacete, or Cuenca. The broader concern is that tourism support should be uniform across regions, especially during peak leisure seasons.
Montes emphasizes that the decree should aid all sectors, yet tourism remains highly exposed to price shifts. She notes that sustaining funding for tourism programs remains crucial, particularly for regions like the Costa Blanca and Costa del Sol.
There is also a broader note about price controls. Energy costs have risen, affecting the economics of low-cost high-speed services linking Alicante and Madrid. A new low-cost corridor across the network, including a planned two daily Alicante-Madrid service, is slated to begin in the fall with a stop in Albacete. This move comes alongside continued concerns about electricity prices and their impact on operator costs.
Madrid AVE speeds up, trimming travel time by about 20 minutes
The railway operator has projected annual electricity consumption in the hundreds of gigawatt-hours, with electricity tariffs fluctuating and occasional surcharges reaching high levels. This has complicated pricing strategies for discounted tickets, especially as electricity costs climb. Renfe estimates that high energy prices have already contributed to substantial expenditures, while the industry awaits broader regulatory relief.
In parallel, new players like Ouigo plan to enter the market using adapted high-speed rolling stock for the Spanish network. These trains will feature double-decker configurations with ample seating, onboard services, and food facilities. French operator SNCF is also preparing to deploy personnel with expertise in freight rail for these vehicles as part of the Mediterranean Corridor expansion.
The ministry projects significant ridership increases from the new measures, with many commuters and casual travelers benefiting. Projections include 144,000 travelers on Cercanías and Media Distancia during peak periods, rising to 170,600, and 152,000 benefiting from the Avant program. Additional costs cover station staff reinforcements, a communications push, and other related expenses. The policy simulations assume that half of transit passengers will transition to the new multi-ride passes, while a substantial share of occasional travelers will shift to the season-ticket option, yielding an overall 30% uplift in demand compared to a no-discount baseline.
The decree also outlines a dedicated helpline for railways affected by fuel-price changes, with a budgetary footprint of 1.9 million euros. Direct carrier support, including for trucks, buses, taxis, and emergency vehicles, is estimated at 450 million euros.
Delay in new AVE orders and industry responses
Talgo challenges a proposed 116 million euro claim linked to delayed deliveries, citing design changes, pandemic-related shutdowns, and testing restrictions as root causes. Talgo’s leadership argues that these shifts have affected customer confidence, investments, and worker morale. The firm contends that the government should acknowledge the extraordinary circumstances that emerged during recent years and that these issues arose in the context of global supply-chain disruptions.
Talgo notes that reduced testing availability and other regulatory changes have limited the ability to run trials, with resource constraints and competing priorities cited as factors. The company also points to communications gaps with Renfe regarding delays and project timelines. Despite these challenges, Talgo maintains that it remains capable of delivering a versatile high-speed solution under demanding conditions, highlighting the importance of timely cooperation with the public rail network operator.
In summary, the evolving policy landscape for Spain’s high-speed rail reflects a balancing act between tourism-driven demand, regional pricing equity, and the financial realities of energy costs and infrastructure investments. The industry continues to adapt as new rolling stock, pricing strategies, and international partnerships shape travel between Madrid, Alicante, and other key hubs.
“The decree should consider all travelers fairly, and price differences across regions deserve transparent, rational justification”
Nuria Montes, the Hosbec official, reiterates the call for a fair framework. Talgo’s leadership underlines the need for predictable planning and clear communications to support ongoing investment and excellence in high-speed rail.