European Aviation Industry At Crossroads As Brussels’ Green Rulebook Tightens Up

On 18 November 2025, at the International Air Transport Association (IATA) “Wings of Change Europe” conference in Brussels, the sector’s mood was cautious. In a pointed critique, IATA’s Director-General argued that the European Union has taken “very little action” to safeguard the competitiveness of European airlines, even as regulatory and environmental demands mount.

On the same day, the European Union Aviation Safety Agency (EASA) and IATA signed a memorandum of understanding aimed at aligning the new EU Flight Emissions Label (FEL) with IATA’s EcoHub and CO₂ Connect systems. This move intends to standardise and simplify the way CO₂ emissions for flights are calculated and displayed to passengers.

FEL, introduced under a 2024 EU regulation, is designed to give travellers access to transparent, comparable emissions data when they book flights — including factors such as aircraft type, load and fuel used. The EASA–IATA collaboration could significantly reduce the compliance burden for airlines while enhancing transparency for consumers.

But industry leaders warn that transparency and sustainability come at a steep price. IATA cautioned that ongoing reforms — including proposed changes to passenger-compensation rules under EU261 and obligations related to sustainable aviation fuel (SAF) and emissions trading — risk driving up costs, making new routes or increased frequency economically unviable for many carriers.

For European aviation, the challenge now is reconciling two imperatives: delivering on climate commitments while preserving a competitive, connected and affordable air-travel network. As these new rules and industry alignments come into force, the months ahead are likely to determine whether airlines can navigate a transition that is green — without grounding their business.