Europe needs a coherent aviation strategy that prioritises infrastructure development and capacity growth if it wants to curb rising airfares and sustain economic growth, according to Oliver Jankovec, Director General of ACI Europe. Speaking to Politis, Jankovec links airport investment directly to competitiveness, social cohesion and affordability, warning that capacity constraints and delayed reforms are pushing prices higher and undermining connectivity.
With Cyprus preparing to assume the EU Council Presidency, Jankovec calls for a renewed European aviation agenda that balances decarbonisation with growth, resilience and regional accessibility. For island economies such as Cyprus, he stresses, air connectivity is not simply a transport issue but a condition for economic survival.
Cyprus among Europe’s strongest performers
According to ACI Europe’s latest connectivity report, Cyprus ranks third in Europe for post-pandemic recovery. In 2025, the country’s air connectivity stood 8 percent above 2019 levels and 13 percent higher than in 2024, outperforming much of the continent.
This performance is notable, Jankovec says, given that overall European connectivity remains 9 percent below pre-pandemic levels, with only half of EU countries having fully recovered. He attributes Cyprus’s success to supportive aviation policies, contrasting it with countries such as France and Germany, where high passenger taxes continue to suppress demand.
Where aviation taxes make up a large share of ticket prices, connectivity grows more slowly, he notes, resulting in fewer passengers and higher fares.
Why connectivity matters for the economy
Airports are powerful economic engines, Jankovec argues. ACI Europe research shows that aviation and airport activity support 14 million jobs and generate €851 billion in GDP across Europe, including more than 44,000 jobs in Cyprus alone.
A 10 percent increase in air connectivity is associated with a 0.5 percent rise in GDP per capita, alongside measurable social benefits such as lower poverty, higher education levels and improved quality of life. For tourism-dependent economies like Cyprus, airports also attract investment, with companies often choosing locations based on proximity to reliable air links.
Market pressures and capacity constraints
The aviation market has changed fundamentally over the past three decades. Airline consolidation now leaves roughly 60 percent of the market controlled by large groups, giving carriers greater flexibility to shift or cancel routes, a risk for tourism-reliant regions.
At the same time, aircraft delivery delays are limiting airlines’ ability to add capacity, even where demand is strong. Combined with airspace congestion and outdated EU slot allocation rules, these pressures constrain growth and push prices upward.
Jankovec stresses that airports must remain attractive through efficient operations, service quality and competitive charges, while regulators urgently modernise the European airspace and slot management framework.
Cyprus and the EU aviation agenda
As Cyprus takes on the EU Council Presidency, ACI Europe expects a new EU aviation strategy to emerge. While decarbonisation remains central, Jankovec warns that sustainability policies must be matched with financial and regulatory support.
Decarbonising aviation is expected to cost €1.3 trillion, a burden airports and airlines cannot carry alone. Measures such as support for sustainable aviation fuels and investment incentives are essential if environmental ambition is not to undermine connectivity.
ACI Europe also advocates reform of the EU’s 30-year-old slot allocation rules and continued support for the liberal open skies framework.
Decarbonisation as the defining challenge
Jankovec describes decarbonisation as the greatest challenge the sector has ever faced, directly affecting airports’ ability to operate and grow. Failure to meet climate commitments, he argues, would be a failure not only for aviation but for society as a whole.
Beyond sustainability, airports must also expand resilient infrastructure, capable of withstanding cyber threats and drone-related disruptions. ACI Europe supports its members through advocacy, policy engagement and knowledge-sharing networks designed to prepare airports for long-term structural change.
Cyprus airports and the concession model
Cyprus’s public-private concession model, operated by Hermes Airports, is cited as a European success story. Over the past two decades, the model has delivered approximately €650 million in concession fees to the state, while significantly upgrading airport infrastructure and service quality.
Jankovec argues that such models allow governments to redirect public funds elsewhere while benefiting from private sector expertise. He expects concession frameworks to remain the dominant model across Europe.
Hermes Airports, he notes, has been an active ACI Europe member since the organisation’s founding, contributing expertise while benefiting from benchmarking and European-level coordination.
Why more capacity means lower prices
Europe hosts half of the world’s most congested airports, a reality that keeps airfares high as demand outstrips supply. Expanding airport capacity is therefore essential to restoring competition and affordability.
By spreading fixed operating costs across more passengers, airports can keep charges competitive, benefiting both travellers and airlines. Jankovec concludes that sustainable capacity growth is not in conflict with affordability. It is a prerequisite for it.
Without timely investment and predictable regulation, he warns, Europe risks higher prices, weaker connectivity and lost competitiveness in an increasingly global aviation market.