European air connectivity has effectively stalled, with the International Air Transport Association reporting just one per cent growth in the continent’s route network in 2025.
According to IATA data, 1,127 routes were cancelled across the European Union in 2025 while 1,281 new routes were added, delivering a net gain of just 154 routes and bringing the total EU network to 14,797. Of the new additions, 568 were restarts of routes that had been paused for at least one year rather than genuinely new connections.
IATA Senior Vice President for External Relations Thomas Reynaert attributed the stagnation directly to the regulatory environment. “The regulatory burden is onerous, costs are high, and the EU’s underlying competitiveness issues have not been seriously addressed,” Reynaert 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.”
IATA has identified reform of the EU261 passenger rights regulation as the most immediate priority. The regulation, which governs compensation for flight delays and cancellations, is currently costing airlines an estimated EUR 8 billion annually across Europe. IATA argues that modest increases to the compensation time thresholds would ease the economics of marginal routes and reinvigorate network growth. This is particularly relevant for advisors whose clients regularly travel through European airports, where disruption claims under EU261 are common.
Beyond EU261, IATA is pushing for a reduction in Sustainable Aviation Fuel costs through a book and claim purchasing model, stronger oversight of airport and air navigation charges, greater flexibility on slot relief during crisis periods, and the elimination of national passenger taxes following the example set by Sweden.
“Europe’s prosperity depends on extensive and efficient connectivity within the continent and with the rest of the world. Each new air route creates new jobs and business and social opportunities,” Reynaert said. Aviation and tourism together support more than 9.2 million jobs and contribute EUR 760 billion in GDP across the EU.
The timing of IATA’s intervention is deliberate. European policymakers are currently deliberating on EU261 reform and IATA is pressing for action before the window closes. For New Zealand travel advisors, the outcome matters. Decisions made in Brussels over the coming months will determine which European routes remain commercially viable and which connection options remain available to clients travelling into and across the continent.