IATA Warns Stagnant European Air Connectivity Could Increase Pressure on Airline and Airport Operations

European air connectivity grew by just 1% in 2025, prompting the International Air Transport Association (IATA) to warn that rising costs and regulatory burdens are making it harder for airlines to expand their networks and sustain marginal routes.

According to IATA, airlines added 1,281 routes across the European Union during the year but canceled 1,127, resulting in a net gain of only 154 routes and a total network of 14,797 routes. The growth rate fell below the 1.5% compound annual growth rate recorded over the past decade.

“The growth of airline route networks reflects both developments in demand and the operating environment,” said Thomas Reynaert, IATA senior vice president of external relations. “That the European Union’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.”

While the debate centers on airline economics, the effects of slower network growth could extend across the aviation ecosystem, including airports, ground handlers and cargo operators that benefit from additional flights and destinations.

IATA estimates that aviation and aviation-related tourism support more than 9.2 million jobs and contribute EUR 760 billion to the EU economy. New routes can create opportunities for airlines, airports and service providers by increasing aircraft movements, passenger volumes and cargo activity.

The association pointed to several factors it believes are constraining growth, including high infrastructure costs, sustainable aviation fuel (SAF) mandates, passenger compensation requirements under EU261 regulations and national aviation taxes.

Among its recommendations, IATA called for reforms to EU261 passenger rights rules, greater flexibility in airport slot relief during periods of disruption, stronger oversight of airport and air navigation charges, lower SAF costs and the elimination of national passenger taxes.

“The most immediate opportunity is on EU261,” Reynaert said. “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 ground support providers, the report highlights the close relationship between airline profitability and operational activity. As carriers face rising fuel, regulatory and infrastructure costs, decisions about route additions, frequencies and network expansion can directly influence demand for ramp services, passenger handling and cargo operations at airports across Europe.

Although European air travel demand remains strong, IATA argues that improving the operating environment will be necessary if airlines are to restore the pace of network growth seen before the pandemic and create additional opportunities throughout the aviation value chain.