European air connectivity barely moved in 2025, with the International Air Transport Association (IATA) warning that the continent’s route network grew by just 1 per cent, underscoring the pressure facing airlines from high costs, regulation and weaker competitiveness.

The figure covers routes within Europe as well as links between the continent and the rest of the world. It also fell below the 1.5 per cent compound annual growth recorded over the past decade, suggesting that the recovery and expansion of Europe’s air links are losing momentum.

According to IATA, 1,127 routes across the EU were cancelled in 2025, while 1,281 routes were added. However, the association said 568 of the added routes were “starts” of services that had operated during the past decade but had been paused for at least one year.

This left the EU with a net gain of 154 routes, bringing the total number of routes in the network to 14,797.

“The growth of airline route networks reflects both developments in demand and the operating environment. That the European Union (EU)’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,” said Thomas Reynaert, IATA’s Senior Vice President External Relations.

Reynaert pointed in particular to passenger rights rules, saying that long-standing problems in the current regulation have still not been properly corrected.

“Consumer protections are a case in point. The flaws of the current regulation have been known but attempts to correct them appear to be doomed to just make them worse,” he said.

“These are the kind of frustrations that make it more difficult for airlines to grow the connectivity that Europe relies on to power jobs and economic growth,” he added.

For IATA, the issue goes beyond airline performance. The association said Europe’s air links remain a major economic driver, supporting more than 9.2 million jobs and generating €760 billion in GDP through aviation and aviation-related tourism in the EU.

At the same time, it said the growth of air travel continues to support business activity, social mobility and leisure spending, while also strengthening Europe’s internal market and its links with the rest of the world.

“Europe’s prosperity depends on extensive and efficient intra- and inter-continental links. Each new air route creates new jobs and business and social opportunities. Fortunately, European politicians have numerous options to introduce smarter regulations and help airlines compete and grow,” Reynaert said.

According to its statement, IATA urged European policymakers to focus on measures that would make it easier for airlines to maintain and expand routes, particularly at a time when some services remain commercially fragile.

Its proposals include reforming the EU261 passenger rights regulation, specifically by increasing the time thresholds for compensation, and reducing the cost of Sustainable Aviation Fuel (SAF).

The association said a book-and-claim process for SAF purchasing would allow airlines to buy SAF where it is produced most efficiently. It also said the current e-SAF mandate should be scrapped, while revenues from the Emissions Trading Scheme should be used to support cheaper SAF production.

IATA also called for stronger regulation of airport and air navigation charges, more flexibility on airport slot relief during periods of crisis, and the removal of national passenger taxes, following Sweden’s example.

However, Reynaert said the most immediate priority is EU261, describing the cost of the current framework as a burden on airlines at a time when fuel and infrastructure expenses are already rising.

“The most immediate opportunity is on EU261. Modest reforms to the thresholds for compensation will help to reduce the €8 billion cost of this out-of-control regulation. Europe’s politicians are meeting now to decide this,” he said.

“We urge them to look up and see what is going on. The price of jet fuel is at record levels. Infrastructure costs are rising,” he added.

“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. They must act without delay,” Reynaert concluded.