EU Air Connectivity Flatlined Under High Costs and Onerous Regulation

Geneva - The International Air Transport Association (IATA) released data showing that European air connectivity essentially flatlined in 2025 with a net 1% growth in the total number of routes connecting the continent (both internally and with other parts of the world). This is below the compound annual growth of 1.5% over the last decade.

"The growth of airline route networks reflects both developments in demand and the operating environment. That the European Union (EU)'s air connectivity virtually flatlined in 2025 is no surprise. The regulatory burden is onerous, costs are high, and the EU's well-documented underlying competitiveness issues have not been seriously addressed. Consumer protections are a case in point. The flaws of the current regulation have been known but attempts to correct them appear to be doomed to just make them worse. These are the kind of frustrations that make it more difficult for airlines to grow the connectivity that Europe relies on to power jobs and economic growth," said Thomas Reynaert, IATA's Senior Vice President External Relations.

• 1,127 routes across the EU were canceled in 2025.
• 1,281 routes were added (568 of which were 'starts' of routes operated in the last decade, but paused for at least one year).
• The net gain of 154 routes is a 1% growth of the route network that now totals 14,797.

The benefits of Europe's air links are well-established: more than 9.2 million jobs and EUR 760 billion in GDP are generated by aviation and aviation-related tourism in the EU. Business, social opportunities, and leisure spending are underpinned by the growth in air travel that has unified Europe and connected Europe to the world.

"Europe's prosperity depends on extensive and efficient intra- and inter-continental links. Each new air route creates new jobs and business and social opportunities. Fortunately, European politicians have numerous options to introduce smarter regulations and help airlines compete and grow," said Reynaert.

The priority steps European policy makers should take are:

• Reform of EU261 passenger rights regulation. Specifically, increasing the time thresholds for compensation.
• Reduce the costs of Sustainable Aviation Fuel (SAF). Introducing a book-and-claim process for SAF purchasing would enable airlines to buy SAF where it is most efficiently produced. The e-SAF mandate as it stands should be scrapped, and Emissions Trading Scheme revenues should be used for cheaper SAF production.
• Strengthen regulation of airport and air navigation charges to improve cost efficiency.
• Allow more flexibility for airport slot relief in periods of crisis.
• Eliminate national passenger taxes, following the example of Sweden.

"The most immediate opportunity is on EU261. Modest reforms to the thresholds for compensation will help to reduce the EUR 8 billion cost of this out-of-control regulation. Europe's politicians are meeting now to decide this. We urge them to look up and see what is going on. The price of jet fuel is at record levels. Infrastructure costs are rising. One simple thing - reducing the cost of EU261 - would make the economics of many marginal routes more manageable for airlines, and re-invigorate air connectivity growth for the benefit of Europe's citizens. They must act without delay," said Reynaert.

> See the full report into EU regional connectivity (pdf)

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