Airports association, ACI Europe, is calling for urgent policy responses from governments in light of the energy crisis unleashed by the stand-off between the U.S. and Iran over the passage of oil and LNG tankers through the Strait of Hormuz.

Speaking at the 17^th Regional Airports Conference & Exhibition in Turin, on Tuesday, Olivier Jankovec, ACI Europe’s Director General, said: “The post-COVID19 reality had already revealed a multi-speed regional airport market—with a clear divide between small regional airports¹ whose passenger traffic remains more than 30% below 2019 levels, and larger ones² which have seen their traffic increase by more than 16%.

“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. For them, this is nothing short of an existential threat.” As the aviation ecosystem braces for the rippled effects of war in the Middle East ACI Europe has been clear in highlighting that regional airports, already weakened by the COVID era, “are particularly vulnerable.”

The association described European Union and national policies as “inadequate” and that they were “exacerbating the fragility of Europe’s regional airport network and the regional connectivity that is vital to the continent’s cohesion.” 

Jet fuel prices in Europe soared in early April, peaking at more than USD1,800/ton earlier, according to ACI Europe, which it said resulted in airfare increases and tight capacity management by airlines. Lufthansa, for example, cut 20,000 flights between May and October 2026, and KLM has cancelled 160 flights.

However, prices have fallen back since then, and according to IATA’s jet fuel monitor, the average for Europe and the CIS for the week ending April 24 was USD1,478/ton. Nevertheless, looking back to the invasion of Ukraine by Russia, the current price shock is significantly worse (see chart below).

Impacts Already Being Felt

Regional airports are more exposed to these adjustments as demand on their routes is typically price-sensitive and price-elastic, and thus less profitable for airlines. ACI Europe stated: “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.

Adding to these difficulties is the rollout of the Schengen Entry/Exit System (EES), which has been causing chaos at several airports serving popular tourist destinations, leading some to dispense with the system at peak periods this summer. AI Europe cited images of passengers queuing directly on the tarmac of a Greek regional airport earlier this month as an “irrefutable illustration of the need to allow border control authorities to suspend the EES when operationally justified.”

While inflationary pressures and increased traffic seasonality have driven structural costs up, user charges at small regional airports have, on average, remained 11% below their pre-pandemic levels. ACI calculates that this is resulting in these gateways losing €2.64 per passenger. 

The airport association said that financial viability will remain elusive fr these airports, confirmed by the European Commission’s own study completed last March. The impact of the war in the Middle East is likely to worsen this outlook.

Andrea Andorno, CEO of Turin Airport and Chair of the ACI Europe’s Regional Airports Forum. said: “Considering that they channel 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. Our strategic relevance has been growing in recent years, strengthening the role we play in the EU’s tourism. This calls for effective EU and national policy frameworks to support regional airports.”

¹  Airports with <1 million passengers per year.
²  Airports with 1 to <5 million passengers per year.