Evaluation Support Study for the Revision of the Guidelines on State Aid to Airports and Airlines

This Study supports the revision of the EU Guidelines on State Aid to Airports and Airlines in light of evolving market dynamics, the impact of COVID-19, and the challenges of the green transition for the European aviation sector. Evidence was collected through literature review, data analysis, stakeholder consultations, and six case studies. The findings show that profitability remains a structural challenge for regional airports (i.e. airports with annual passenger traffic volume of up to 3 million passengers per year): only about 54% of European regional airports that the Study has sampled were cost-covering in 2024 (figures reported by EU airport associations are even lower). Based on the literature review and stakeholders’ consultations, smaller regional airports are most vulnerable due to high fixed costs, seasonality, and limited non-aviation related revenues. While regional airports with above 700,000 passengers per year are more likely to be cost-covering on average, the expected minimum number of passengers to break-even is reportedly rising due to increasing operating and investment costs, and reliance on operating and investment aid is widely acknowledged. Regional airports contribute positively to connectivity and local economic development, especially in peripheral regions of the EU. Regional airports exert limited competitive pressure on hubs but compete strongly with each other. COVID-19 intensified financial pressures, though leisure-driven recovery was relatively swift. Airports have a modest direct environmental footprint but play a crucial enabling role in decarbonisation of the aviation sector. The majority of consulted stakeholders call for additional State aid tools and incentives to address environmental and climate impacts in aviation, with airports in particular expressing stronger backing. Support for green conditionality falls short of a majority in all stakeholder groups except NGOs.