The King and the prime minister discussed the impact of the virus on the Balearics.
The National Competition Commission could initiate action against airlines.
Some "low-cost" operators, the government claims, are "distorting prices in order to improve their results".
Fares, it is said, have risen by as much as 70%.
The residents discount went up to 75% in the summer, and airlines have apparently increased their prices as a result.
An increase in the residents' discount has led to increased demand for flights.
The chief beneficiaries are the airlines which cash in on the seasonal demand.
There is a campaign to promote short-break packages for cultural and gastronomic tourism.
The European Union believes that resident discounts amount to unequal treatment of people from other countries.
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