Regional Airports Urge EU Action on Economic, Connectivity, and Policy Issues

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Are Regional Airports on the Brink? A Deep Dive into the Future of Air Travel

Is the golden age of air travel fading for smaller cities and towns? The future of regional airports hangs in the balance, facing a perfect storm of economic pressures, shifting airline strategies, and evolving environmental regulations.Let’s unpack the challenges and explore potential pathways to a enduring future for these vital links in the global transportation network.

The Great Divide: A Two-Speed Recovery

The aviation industry’s recovery from the COVID-19 pandemic has been anything but uniform. While major hubs are buzzing with activity, regional airports are experiencing a starkly different reality.

Swift Fact: Larger regional airports (handling 1 to 10 million passengers annually) have seen passenger traffic soar +11.7% above pre-pandemic (2019) levels. Smaller regional airports (less than 1 million passengers) are still struggling, with volumes down -35.1% compared to 2019.

This “two-speed” recovery highlights a fundamental shift in the aviation landscape. The rise of remote work, changing travel preferences, and the strategic decisions of airlines are reshaping the demand for regional air travel.

The LCC Effect: A Blessing and a Curse

Ultra-Low Cost Carriers (LCCs) have become increasingly crucial for regional airports, offering a lifeline to communities seeking affordable air connectivity.Though, this reliance comes with its own set of challenges.

Expert Tip: While LCCs can stimulate demand and boost tourism, they also exert meaningful pressure on airports to minimize costs. This can lead to a race to the bottom, potentially compromising service quality and long-term sustainability.

The Capacity Conundrum

The numbers tell a compelling story. Seat capacity deployed by LCCs at smaller regional airports remains -27% below Summer 2019 levels, while larger regional airports have seen a +29% increase. Full Service Carriers (FSCs) are nearly halving their seat capacity at smaller regional airports (-45%) and keeping it flat at larger ones (-0.3%). This disparity underscores the growing concentration of air travel at larger hubs, leaving smaller airports struggling to attract and retain service.

The american Parallel: Regional Jet Woes

The situation in Europe mirrors some of the challenges faced by regional airports in the United States. The pilot shortage, for example, has disproportionately impacted regional airlines, leading to service cuts and route consolidation. Companies like SkyWest Airlines, a major regional carrier in the US, have had to adapt their strategies to navigate these headwinds.

Financial Pressures: A Tightrope Walk

For manny smaller regional airports, simply breaking even is a constant struggle. High fixed costs, lack of economies of scale, and significant traffic seasonality create a challenging financial environment.

The Cost Crunch

While costs have continued to rise due to inflationary pressures, airport charges have decreased in real terms since 2019, standing at -12.1% for smaller regional airports and -5.9% for larger ones. This squeeze on revenue makes it tough for airports to invest in necessary infrastructure upgrades and maintain service levels.

The American example: Essential Air Service

In the United States, the Essential air Service (EAS) program provides subsidies to airlines serving smaller communities, ensuring they maintain a minimum level of air service. this program is a recognition of the vital role that regional airports play in connecting rural areas to the national transportation network. However, the EAS program is not without its critics, who argue that it can be inefficient and distort market forces.

Policy Challenges: Navigating the Regulatory Maze

European airports are facing a complex web of regulations, particularly those related to climate change. These regulations, while intended to promote sustainability, could have unintended consequences for regional airports.

The Climate Change Factor

EU and UK climate regulations are expected to increase air fares and reduce demand,particularly for smaller regional airports relying on LCCs.Autonomous studies suggest that passenger traffic at these airports could decrease by up to -20% by 2050.

The american Debate: Sustainable Aviation Fuel

The United States is also grappling with the challenge of reducing aviation emissions. The Biden management has set ambitious goals for the production and use of Sustainable Aviation Fuel (SAF), but the high cost of SAF remains a significant barrier to widespread adoption.

ACI EUROPE’s Call to action: A Four-Point Plan

ACI EUROPE, the trade association representing European airports, has called for an urgent EU policy reset focused on four key priorities:

1. Safeguarding operating aid for smaller regional airports beyond 2027. The revision of the EU Aviation State aid Guidelines must protect the ability of smaller regional airports to receive operating aid.
2. Delivering a robust EU sustainable Transport Investment Plan. This plan should include an effective EU SAF Industrial policy, earmarking of aviation ETS revenues for decarbonisation, and increased SAF allowances under ETS.
3. abolishing national aviation taxes. These taxes harm the social and economic contributions of air transport.
4. Safeguarding and further developing Open Skies Agreements.

Türkiye’s Regional Airports: A Case Study in Potential

The situation in Türkiye highlights the importance of supportive goverment policies in fostering the growth of regional airports. ACI EUROPE has called on Türkiye to revise