The energy crisis is compounding challenges already faced by Europe’s smaller airports, amounting to an “existential threat”.
Europe’s regional airports are particularly vulnerable to the impacts of the war in the Middle East, an industry trade body has warned.
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Iran’s retaliatory chokehold on the Strait of Hormuz has sent jet fuel prices soaring – peaking at more than $1,800 (€1,535)/ton earlier this month – resulting in airfare increases and flight cuts by airlines.
The energy crisis is compounding challenges already faced by Europe’s smaller airports, amounting to an “existential threat”.
Small airports face a supply and demand shock
Regional airports are the most exposed to the fallout of spiking energy costs, the Airports Council International of Europe (ACI Europe) said in a press release this week.
Demand on their routes is typically much more price-sensitive and price-elastic – and thus less profitable for airlines.
This means that when considering where to cut capacity, airlines are more likely to do so on routes serving regional airports, as shown by the recent decision by Lufthansa to shut down its regional subsidiary, CityLine.
In the post-COVID years, small regional airports have seen passenger traffic remain more than 30% below 2019 levels, while larger ones have had their traffic increase by more than 16%, said Olivier Jankovec, Director General of ACI EUROPE.
“The current levels of jet fuel prices and the prospect of a new cost-of-living crisis mean that many regional airports across our continent are likely to face both a supply and demand shock,” he added. “For them, this is nothing short of an existential threat.”
Only adding to these difficulties is the stunted rollout of the Schengen Entry/Exit System (EES), the industry body added, which is set to wreak havoc at regional airports serving popular tourist destinations this summer.
Small airports already face financial challenges as user charges for airlines (such as landing fees and parking fees) have remained around 11% below their pre-pandemic levels, resulting in an average loss of €2.64 per passenger.
Regional airports are ‘indispensable’
ACI Europe emphasises that regional airports are part of Europe’s critical infrastructure and need protection measures to be put in place.
“Considering that they are channeling 35% of Europe’s air connectivity, regional airports are clearly indispensable enablers of the EU’s Single Market, and essential for cohesion and regional development,” said Andrea Andorno, CEO of Torino Airport and Chair of the ACI EUROPE Regional Airports Forum.
“An airport is truly what puts a community not just on the European but on the global map. Our strategic relevance has been growing in recent years, strengthening the role we play in the EU’s tourism diversification agenda.”
ACI EUROPE and its Regional Airports Forum are calling for the suspension of national aviation taxes to provide relief for the aviation and tourism sectors as well as consumers throughout the energy crisis.
They are asking for the safeguarding of operating aid for regional airports of up to one million passengers per year and the acceleration of aviation decarbonisation.
The group is also pushing for airports to be able to enact a full suspension of the Schengen EES in case of excessive and unmanageable waiting times at border control throughout the summer season 2026 and beyond.
