Yes, it is real: as a Madeira resident, your flight to mainland Portugal costs you at most €79 per journey — €59 if you are a student. The Portuguese State pays the difference. In peak season, when a Funchal–Lisbon return runs €250, that is €171 back on one trip.
THE MECHANISM, PLAINLY. The benefit — recently renamed the Mecanismo de Continuidade Territorial (MCT) — exists because Portugal treats air travel to its islands as territorial continuity, not luxury. The current rules (rebuilt in 2025–2026): residents pay a capped €79 per journey Madeira ↔ mainland (€59 students; Madeira ↔ Azores also capped at €79). One-way trips work too — roughly €39.50, pairable with the return later.
What counts toward the cap: the economy fare, airport and security taxes, fuel surcharge, issue fee, carbon tax. What does not: extra baggage, seat selection, priority boarding, insurance. One warning from the fine print: upgrading your class after purchase makes the whole trip ineligible.
CLAIMING GOT DRAMATICALLY EASIER IN 2026. The old ritual — pay full price, queue at CTT, wait for a refund — is being phased out. For tickets bought from 15 January 2026, you claim online at gov.pt right after purchase (TAP, easyJet, SATA; for Ryanair, after the trip). Deadline: 90 days from travel. You need proof of tax domicile in Madeira, the invoice with your NIF, and the ticket. A further 2026 change removed the old €400 eligible-fare cap by law — though the platform showed the old cap during transition, so verify at claim time.