European air connectivity has experienced a stagnation, with the International Air Transport Association (IATA) reporting a mere 1 per cent growth in the continent’s route network in 2025. This troubling figure highlights the mounting pressures on airlines stemming from high operational costs, stringent regulations, and a decline in competitiveness.
- “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,” Reynaert remarked.
Flatlining Growth in Routes
This 1 per cent growth encompasses both intra-European routes and those connecting the continent to the rest of the world. Alarmingly, it lags behind the 1.5 per cent compound annual growth rate recorded over the past decade, indicating a worrying loss of momentum in the recovery and expansion of Europe’s air links.
Routes Cancelled and Added
In 2025, 1,127 routes across the European Union were cancelled, while 1,281 new routes were introduced. However, IATA clarified that 568 of these new routes were merely restarts of services that had previously operated but were paused for over a year. Ultimately, the EU saw a net gain of just 154 routes, bringing the total to 14,797.
Regulatory Challenges for Airlines
Thomas Reynaert, IATA’s Senior Vice President of External Relations, expressed concern over the regulatory landscape, stating that the EU’s air connectivity stagnating in 2025 is unsurprising given the onerous regulatory burden and high costs. He specifically pointed to passenger rights regulations, highlighting that long-standing issues have yet to be adequately 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,” Reynaert remarked.
The Economic Impact of Air Connectivity
IATA emphasised that the ramifications of stagnant air connectivity extend beyond airlines, as Europe’s air links are a crucial economic driver, supporting over 9.2 million jobs and generating €760 billion in GDP through aviation and related tourism in the EU. The association noted that the growth of air travel continues to bolster business activity, social mobility, and leisure spending, thereby strengthening Europe’s internal market and its connections with the global community.
Calls for Regulatory Reform
Recognising the critical role of air connectivity in Europe’s prosperity, Reynaert urged policymakers to consider regulatory changes that would enable airlines to sustain and expand routes, particularly in a climate where many services remain commercially fragile. IATA proposed several reforms, including adjustments to the EU261 passenger rights regulation to raise compensation thresholds and reduce costs associated with Sustainable Aviation Fuel (SAF).
Additionally, the association suggested implementing a book-and-claim process for SAF purchases to allow airlines to procure fuel more efficiently, alongside calls for scrapping the current e-SAF mandate and reallocating emissions trading scheme revenues to support cheaper SAF production.
IATA also advocated for stricter regulations on airport and air navigation charges, more flexibility in airport slot relief during crises, and the elimination of national passenger taxes, taking cues from Sweden’s approach.
Immediate Focus on EU261 Regulation
Reynaert highlighted the urgency of reforming the EU261 regulation, labelling its costs as a significant burden on airlines during a period of escalating fuel and infrastructure expenses. He noted, “The most immediate opportunity is on EU261. Modest reforms to the thresholds for compensation will help to reduce the €8 billion cost of this out-of-control regulation. Europe’s politicians are meeting now to decide this.”
He urged stakeholders to recognise the current economic pressures on airlines, stating that lowering the costs associated with EU261 could make the economics of many marginal routes more viable and rejuvenate air connectivity growth for Europe’s populace.
