European Regulatory Costs Set To Triple By 2030

SEVILLE, Spain—A new study commissioned by Airlines for Europe (A4E) has revealed that the cost of doing business in Europe has tripled since 2014—and this figure is set to double by 2030.

A4E Managing Director Ourania Georgoutsakou told delegates at Routes Europe 2025 in Seville that regulatory costs, combined with inefficiencies, added €15.5 billion ($17 billion) to European airline costs in 2024.

“I mean, the cost of complying with regulations, environmental legislation, corporate disclosure obligations, operational compliance obligations, border security, taxation and also the cost of inefficiencies,” Georgoutsakou said April 8. “If we don’t change, that cost will again double to almost €27.6 billion by 2030.”

Steer Davies & Gleave, the consultancy firm which performed the research, estimates the direct cost of compliance was €9.9 billion in 2024, rising to more than €15.5 billion when market inefficiencies—most notably, the absence of a true Single European Sky—are factored in.

“Europe is becoming less attractive and more expensive to do business in,” she said. “If you break that down, on average, that’s about €30 per passenger.”

Georgoutsakou warned that the ReFuelEU 6% sustainable aviation fuel blending mandate, which takes effect in 2030, will increase costs even further.

She also noted that European regulatory costs have grown by 11% annually since 2014, compared with just 4% traffic growth. Georgoutsakou said this is a “stark warning” for European competitiveness.