State aid to regional airports must continue to protect vital air connectivity

Europe’s small and regional airports put their communities on the map. With vital air links ensuring remote areas, islands and underserved regions can benefit from the socioeconomic boons of staying connected, it is crucial that we protect and enable airports to continue in this fundamental role.

The EU has long acknowledged the importance of supporting regional airports, recognising both their financial fragility and their contribution to territorial cohesion. Under the Aviation State aid Guidelines, airports handling fewer than 3 million passengers annually have been allowed to receive operating aid to cover their deficits – a lifeline reflecting their critical role in supporting connectivity and local development.

However, this support comes with an expiry date. The Guidelines initially set a phase-out by 2024, later extended to 2027, based on the assumption that airports with more than 200,000 passengers per year would eventually achieve profitability through increased user charges, traffic growth, and operational efficiencies.

Yet the reality is different. An independent study by Oxera, commissioned by ACI EUROPE, has shown that for airports with fewer than 1 million passengers annually, financial viability remains out of reach – and is unlikely to be achieved in the foreseeable future. This makes it imperative that the ongoing review of the Aviation State aid Guidelines results in an extension of operating aid beyond 2027.

As highlighted in Mario Draghi’s recent report The Future of European Competitiveness, the EU’s labour force is projected to shrink by 2 million workers annually by 2040. With productivity needing to drive future growth, the link between air connectivity and GDP becomes even more critical. The evidence is clear: a 10% increase in direct air connectivity translates into a 0.5% rise in GDP per capita.

Moreover, regional airports are still grappling with the fallout from COVID-19. They remain the slowest segment to recover, with passenger traffic down 31.9% in January 2025 compared to 2019 levels. Many face an existential threat.

To secure Europe’s economic resilience and territorial cohesion, Member States must retain the option to provide operating aid to small and regional airports. The stakes are simply too high to ignore.

ACI EUROPE has responded to the European Commission public consultation on the review of Aviation State aid Guidelines elucidating the above facts and figures.

Find out more:

• ACI EUROPE Press Release | EU’s 2027 deadline for operating aid puts regional airports at risk — Extension needed to protect vital air connectivity
  
• ACI EUROPE Press Release | EU State aid Guidelines must be extended to safeguard vital regional air connectivity and facilitate decarbonisation

Download the Oxera report here.