The association said high costs and “onerous” regulation hampered growth in 2025, where 1,281 routes were added across the European Union and 1,127 routes were cancelled. This resulted in a net increase of 154 routes, bringing the total network to 14,797 air connections.
“That the European Union’s air connectivity virtually flatlined in 2025 is no surprise,” said Thomas Reynaert, IATA’s senior vice president, external relations. “The regulatory burden is onerous, costs are high and the EU’s well-documented underlying competitiveness issues have not been seriously addressed.”
IATA is now calling on EU policymakers to reduce the costs of alternative aviation fuels (also known as ‘sustainable’ aviation fuels of SAF) by introducing a book-and-claim process for purchases, strengthen regulation of airport and air navigation charges and, in particular, to reform EU261 passenger rights rules.
The EU Parliament’s Transport and Tourism Committee earlier this year moved to broaden air passenger rights related to carry-on baggage, but maintained existing rules that require airlines to provide compensation for flight delays of three hours or more – a move that was heavily criticised by the aviation industry.
“Modest reforms to the thresholds for compensation will help to reduce the €8 billion cost of this out-of-control regulation,” said Reynaert in a statement this week. “We urge [politicians] to look up and see what is going on. The price of jet fuel is at record levels. Infrastructure costs are rising. 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 the benefit of Europe’s citizens.”
Similarly, the European Regions Airline (ERA) Association this week issued an open letter to EU MEPs urging them to deliver “balanced reform that protects passengers without putting essential air links at risk”.
Signed by 35 regional airlines – including the likes of Loganair, KLM Cityhopper and SAS – the letter warns that current EU261 proposals could “push essential regional connectivity to breaking point”.
“We urge policymakers to pull the brakes on the EU261 passenger rights revision as an unprecedented fuel crisis deepens, threatening what remains of our competitiveness,” the letter stated.
“Many regional airlines also operate smaller fleets, often from a single base, with limited access to spare aircraft, maintenance and repair facilities, or replacement parts, especially in remote regions. When disruption occurs, solutions are not immediate. They require time, coordination and resources that differ fundamentally from those of large network or low-cost carriers.”
ERA stated that it “remains open” to working with policymakers on a “constructive compromise” that maintains regional connectivity in Europe.
Tags: EU Parliament’s Transport and Tourism Committee ERA IATA
