ERA warns Europe’s regional air links remain fragile

Europe’s regional air connectivity remains under pressure and island states such as Cyprus risk being disproportionately affected by rising costs and rigid regulations, according to the European Regions Airline Association (ERA). 

In an exclusive interview with the Cyprus Mail, the association stressed that Cyprus serves as a prime example of why European aviation policies must take into account the realities facing islands and remote regions.

ERA, which represents more than 50 airlines and over 200 companies across the aviation sector, including manufacturers, airports, suppliers and aviation service providers, said regional aviation plays a fundamental role in supporting social cohesion, territorial equality and economic growth across Europe. 

The organisation explained that regional carriers operate in conditions that are vastly different from those faced by major network airlines. 

Profit margins typically range between just 1 and 4 per cent, fleets usually comprise between three and 40 aircraft, and most operators fly aircraft with between 19 and 120 seats. 

Many of these airlines operate short-haul routes with relatively low passenger volumes, including public service obligation routes, while ERA members are the sole operators on more than 1,000 routes throughout Europe. 

According to the association, these routes provide an essential year-round lifeline for smaller communities and regional airports while also feeding passengers into larger hubs. 

ERA said the overall state of regional air connectivity remains fragile, with traffic levels still below those recorded before the Covid-19 pandemic. 

More than ten regional airlines have also ceased operations because of what the association described as heavy regulatory and financial burdens. 

“What regional airlines are facing today is not a single challenge, but a convergence of pressures,” the association said. 

These include fuel price volatility, supply chain disruptions, sustainability-related costs and growing regulatory complexity, all of which affect smaller operators disproportionately. 

ERA argued that the greatest obstacle to equitable connectivity is a “one-size-fits-all” regulatory framework that fails to recognise the operational realities of regional aviation. 

“A 50-seat regional turboprop cannot absorb the same environmental taxes and regulatory costs as a 300-seat long-haul aircraft,” the association said. 

It added that regulators often overlook the fact that regional aircraft serve low-volume lifeline routes rather than highly profitable tourist destinations. 

ERA also criticised some environmental measures, saying regional airlines are sometimes required to purchase expensive sustainable aviation fuel (SAF) even when it is unavailable at the airports they serve. 

The association was equally critical of the recent agreement on reforms to EU261 passenger rights legislation. 

“The agreement preserves a punitive compensation regime where compensation often far surpasses the original ticket prices,” the association said. 

ERA argued that the existing three-hour delay threshold ignores the logistical realities faced by airlines operating from a single base with limited backup capacity. 

The association said regional aviation contributes more than 335,000 jobs and €23 billion in gross value added across Europe. 

In 2023, regional flights supported 4.5 million jobs and generated €205 billion in gross value added, equivalent to 12 per cent of Europe’s tourism employment. 

In some outermost regions, including the Azores, Madeira and the Canary Islands, virtually all tourists arrive by air. 

ERA said Cyprus illustrates the importance of reliable connectivity for island economies. 

Tourism accounts for approximately 14 per cent of Cyprus’ gross domestic product, while the country remains the most service-oriented economy in the European Union. 

The association pointed out that arrivals to Cyprus declined by 27.6 per cent in April 2026 compared with the same month last year because of the ongoing conflict in the Middle East. 

“Reduced tourism is worrying for Cyprus,” the association said. 

“A flourishing tourism sector has positive spillover effects to other sectors,” it added. 

According to ERA, route stability and resilience are fundamental for Cyprus and other islands and remote regions across Europe. 

The association called for the systematic incorporation of an “island dimension” into European legislation and proposed that all transport-related impact assessments should examine the effects on island regions and island member states. 

Looking at policy priorities, ERA identified sustainable aviation fuel as one of the sector’s most pressing issues. 

It said production and infrastructure need to expand beyond major hubs and argued that regional airports and airlines require equal access to SAF. 

The association strongly backed a Book and Claim system, which would allow airlines to purchase verified SAF and claim emissions reductions regardless of where the fuel is physically supplied. 

“It is about recognising that SAF availability is still geographically limited,” the association said. 

ERA also said the EU Emissions Trading System should reward airlines that invest in SAF through such a mechanism. 

“If an airline pays for verified SAF through a credible Book and Claim mechanism, the ETS should recognise that investment,” the association said. 

Without such alignment, smaller operators risk paying for decarbonisation while being excluded from the incentives intended to support it. 

The organisation also urged Europe to reinvest emissions trading revenues into fleet renewal, SAF deployment and low- and zero-emission aircraft technologies rather than introducing additional taxes. 

ERA further called for a more flexible state aid framework and improvements to public service obligation schemes. 

It said greater regional involvement, route grouping, English-language tenders and mechanisms to offset unexpected costs such as fuel price spikes would help secure essential services. 

Closer cooperation between governments and airlines could also facilitate the launch of new routes through grants, incentives and reduced airport charges until routes become commercially sustainable. 

In addition, the association argued that Europe needs better airspace management and stronger infrastructure coordination. 

Continued fragmentation of European airspace, it warned, creates unnecessary delays and additional costs that regional airlines are less able to absorb. 

ERA also called for greater transparency in infrastructure access, protected priority for scheduled services and measures to ease congestion at major hubs while strengthening regional airports. 

Looking ahead, the association said decarbonisation, digital transformation, workforce shortages and infrastructure resilience will shape regional travel over the next five years. 

Regional airlines are expected to be among the first to deploy hybrid-electric, fully electric and eventually hydrogen-powered aircraft on shorter routes. 

ERA also warned that Europe could face a shortage of around 19,000 pilots by 2032, while the global industry will require more than 700,000 new maintenance technicians over the next two decades. 

For regional operators, this highlights the importance of training, retention and skills development. 

Overall, ERA said the industry’s future will depend on Europe’s ability to combine innovation with practical and investment-backed policies. 

For Cyprus, where 96.8 per cent of arrivals and departures are by air, the stakes are particularly high. 

“Air connectivity is directly linked to tourism, economic growth, social cohesion and access to the Single Market,” the association said. 

“Year-round tourism requires year-round connectivity,” it added. 

The association warned that if routes become less frequent, more expensive or commercially unattractive, the consequences would extend far beyond passengers and would affect tourism businesses, regional development and the wider economy. 

“Cutting connectivity through unaffordable costs is not a sustainable climate strategy,” the association said. 

“The objective must be to reduce emissions while keeping essential regional links viable,” it concluded.