The International Air Transport Association (IATA) has warned that Europe’s air connectivity growth stalled in 2025, citing rising operational costs, burdensome regulations and broader competitiveness challenges across the European Union.
According to data released by IATA, the continent recorded a net growth of just one per cent in total air routes during the year, falling below the 1.5 per cent compound annual growth average recorded over the last decade. The figures show that 1,127 routes across the EU were cancelled in 2025, while 1,281 routes were added, resulting in a modest net increase of 154 routes and bringing Europe’s total route network to 14,797.
IATA’s Senior Vice President for External Relations, Thomas Reynaert, said the weak growth reflected the difficult operating environment facing airlines across Europe. He argued that excessive regulation, high operating costs and unresolved structural competitiveness issues within the EU were making it increasingly difficult for airlines to expand their networks.
Reynaert pointed specifically to the EU261 passenger rights regulation, describing it as one of the major frustrations for airlines. According to him, the shortcomings of the current regulation are well known, but proposed reforms risk making the situation even more difficult for carriers already battling rising fuel and infrastructure costs.
Despite the slowdown, aviation continues to play a major role in Europe’s economy. IATA noted that aviation and aviation-related tourism support more than 9.2 million jobs across the EU and contribute approximately €760 billion to the region’s GDP. The association stressed that strong air connectivity remains essential for trade, tourism, business growth and social mobility within Europe and between Europe and the rest of the world.
IATA urged European policymakers to adopt measures that would encourage airline growth and strengthen connectivity. Among its recommendations are reforms to EU261 passenger compensation rules, including increasing compensation thresholds to reduce the estimated €8 billion annual burden on airlines. The association also called for measures to reduce the cost of Sustainable Aviation Fuel (SAF), including introducing a “book-and-claim” system that would allow airlines to purchase SAF where it can be produced most efficiently.
The association further advocated stronger regulation of airport and air navigation charges to improve cost efficiency, more flexible airport slot relief during periods of crisis, and the removal of national passenger taxes, citing Sweden as an example.
Reynaert said Europe’s prosperity depends heavily on extensive and efficient air links, noting that every new air route creates jobs, boosts business opportunities and strengthens social connections. He warned that unless policymakers act quickly to address regulatory and cost pressures, Europe risks further stagnation in air connectivity growth at a time when global competition in aviation continues to intensify.
