IATA Warns EU Air Connectivity Has Stalled Under Weight of Regulation and Cost

European air connectivity ground to a near standstill in 2025, the International Air Transport Association has warned, blaming a punishing combination of regulatory burden, high costs and unresolved competitiveness failings for choking the route growth that underpins the continent's economy.

Data released by the trade body shows the EU route network expanded by just 1 per cent last year, a net gain of 154 routes to bring the total to 14,797. The figure sits below the 1.5 per cent compound annual growth recorded over the preceding decade. Beneath the flat headline lies considerable churn: 1,127 routes were cancelled across the bloc, while 1,281 were added, of which 568 were restarts of links previously paused for at least a year.

Thomas Reynaert, IATA's senior vice president for external relations, said the stagnation was no surprise given that the regulatory environment remained onerous and costs elevated, with the EU's well-documented competitiveness problems left unaddressed. He singled out consumer protection rules as emblematic of a framework whose flaws are recognised yet repeatedly worsened by attempts at reform.

The stakes are substantial. Aviation and aviation-related tourism support more than 9.2 million jobs and generate some 760 billion euros in EU economic output, according to the association.

IATA is pressing Brussels to act on several fronts, foremost among them reform of the EU261 passenger compensation regime, which it estimates costs carriers 8 billion euros annually. The body also wants cheaper sustainable aviation fuel through a book-and-claim system, tighter oversight of airport and air navigation charges, greater slot flexibility during crises, and the elimination of national passenger taxes, citing Sweden's recent example.

With jet fuel at record levels and infrastructure costs climbing, Reynaert urged policymakers meeting now on EU261 to act without delay to revive the connectivity Europe relies on.