EU Air Connectivity Flatlined Under High Costs and Onerous Regulation

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.

Key Findings
- Flatlined growth: EU air connectivity in 2025 grew just 1%, well below the 1.5% average of the past decade.
- Route changes: 1,127 routes were canceled, 1,281 added, leaving a net gain of 154 routes (total: 14,797).
- Economic impact: Aviation supports 9.2 million jobs and contributes €760 billion to EU GDP.

Challenges Highlighted
- High costs: Jet fuel and infrastructure costs are rising.
- Onerous regulation: EU261 passenger rights regulation alone costs airlines €8 billion annually.
- Competitiveness issues: Current consumer protection rules are seen as counterproductive.

IATA’s Recommendations
- Reform EU261 by raising compensation thresholds.
- Lower costs of Sustainable Aviation Fuel (SAF) via book‑and‑claim and redirecting ETS revenues.
- Strengthen oversight of airport and navigation charges.
- Allow more slot relief flexibility during crises.
- Eliminate national passenger taxes, following Sweden’s example.

Takeaway
IATA’s message is blunt: Europe risks losing competitiveness if policymakers don’t act quickly. Even modest reforms—like adjusting EU261—could make marginal routes viable again and re‑ignite connectivity growth.