Author:
Airports Council International Europe
Language:
English

Airport Industry Connectivity Report 2023

June 2023
Aviation

European _total air connectivity _still -16% below pre-pandemic (2019) levels in 2023 – meaning that travellers from European airports continue to see fewer options while air fares have increased at twice the rate of inflation.

  • The performance gap between direct connectivity (-4%) and indirect connectivity (-22%), points to recovery patterns becoming structural – in particular the significant expansion of ultra-Low Cost Carriers (LCCs) and the relative retrenchment of Full Service Carriers (FSCs).

Istanbul, Amsterdam-Schiphol and London-Heathrow stand atop the airport podium for direct connectivity – with the Turkish hub being the only one having exceeded its pre-pandemic (2019) direct connectivity.

  • Only 34% of Europe’s airports have recovered or exceeded their pre-pandemic (2019) _direct connectivity _levels.
  • Athens, Palma de Mallorca, Lisbon, Dublin and Istanbul- Sabiha Gökçen have recovered or exceeded their pre-pandemic (2019) _direct connectivity _– along with smaller and regional airports. This reflects the continued strength of leisure and VFR demand (which for now defies inflationary pressures), with airlines targeting these markets for capacity deployment.

_Direct connectivity _between Europe and all other world regions has recovered, with the exception of Asia-Pacific.

  • Direct connectivity to Africa (+8%) and the Middle East (+7%) has exceeded pre-pandemic (2019) levels, followed by _direct connectivity _to North America (-1%), Latin America (-1%) and Asia- Pacific (-18%).

_European hub connectivity _remains -25% below pre-pandemic (2019) levels, also reflecting structural changes in connectivity patterns and the aviation market as a whole.

  • Frankfurt remains the top airport globally for hub connectivity, followed by Istanbul and Dallas Fort Worth.
  • Hub connectivity shrinkage, hub downgrades and considerable variations in performance have become key features of the European market.

Low Cost Carriers (LCCs) account for all of Europe’s gains in _direct connectivity _over the past 10 years. Their share of _direct connectivity _on the intra- European market now stands at 46%.

  • When compared to pre-pandemic (2019), LCCs exceed their _direct connectivity _levels on the entire European market by +12%, whereas Full Service Carriers (FSCs) are at -13%.
  • Large airline groups have increased their share of _direct connectivity _at their hub airports to 66%, while LCCs have reinforced their position at regional and smaller airports – pointing to a potential re-segmentation of the aviation market.

Türkiye, the Western Balkans and other countries relying on inbound tourism significantly outperform in their recovery of air connectivity.

  • 5 national markets have now exceeded their pre-pandemic (2019) _total air connectivity _levels: Türkiye, Cyprus, Bosnia & Herzegovina, Albania and Greece. Ukraine has lost all air connectivity while international sanctions have resulted in much lower levels of _total air connectivity _for Belarus and Russia.
  • The UK has overtaken Spain as the European country with the highest level of direct connectivity, with Germany coming in the third position.

Looking ahead, a combination of factors is set to challenge the historical progression and resilience of air connectivity: the aviation market moving back to more segmentation, lack of infrastructure capacity, climate action and related policies as well as geopolitical risks and fragmentation.

Contents:

  1. Passenger Perspective of Air Connectivity
  2. European Air Connectivity - Snapshot
  3. Direct Connectivity
  4. Connectivity to Other World Regions
  5. Hub Connectivity
  6. Connectivity and Airline Business Models
  7. National Markets
  8. What Next for Air Connectivity?

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Airport Industry Connectivity Report 2023

June 2023
Aviation

European _total air connectivity _still -16% below pre-pandemic (2019) levels in 2023 – meaning that travellers from European airports continue to see fewer options while air fares have increased at twice the rate of inflation.

  • The performance gap between direct connectivity (-4%) and indirect connectivity (-22%), points to recovery patterns becoming structural – in particular the significant expansion of ultra-Low Cost Carriers (LCCs) and the relative retrenchment of Full Service Carriers (FSCs).

Istanbul, Amsterdam-Schiphol and London-Heathrow stand atop the airport podium for direct connectivity – with the Turkish hub being the only one having exceeded its pre-pandemic (2019) direct connectivity.

  • Only 34% of Europe’s airports have recovered or exceeded their pre-pandemic (2019) _direct connectivity _levels.
  • Athens, Palma de Mallorca, Lisbon, Dublin and Istanbul- Sabiha Gökçen have recovered or exceeded their pre-pandemic (2019) _direct connectivity _– along with smaller and regional airports. This reflects the continued strength of leisure and VFR demand (which for now defies inflationary pressures), with airlines targeting these markets for capacity deployment.

_Direct connectivity _between Europe and all other world regions has recovered, with the exception of Asia-Pacific.

  • Direct connectivity to Africa (+8%) and the Middle East (+7%) has exceeded pre-pandemic (2019) levels, followed by _direct connectivity _to North America (-1%), Latin America (-1%) and Asia- Pacific (-18%).

_European hub connectivity _remains -25% below pre-pandemic (2019) levels, also reflecting structural changes in connectivity patterns and the aviation market as a whole.

  • Frankfurt remains the top airport globally for hub connectivity, followed by Istanbul and Dallas Fort Worth.
  • Hub connectivity shrinkage, hub downgrades and considerable variations in performance have become key features of the European market.

Low Cost Carriers (LCCs) account for all of Europe’s gains in _direct connectivity _over the past 10 years. Their share of _direct connectivity _on the intra- European market now stands at 46%.

  • When compared to pre-pandemic (2019), LCCs exceed their _direct connectivity _levels on the entire European market by +12%, whereas Full Service Carriers (FSCs) are at -13%.
  • Large airline groups have increased their share of _direct connectivity _at their hub airports to 66%, while LCCs have reinforced their position at regional and smaller airports – pointing to a potential re-segmentation of the aviation market.

Türkiye, the Western Balkans and other countries relying on inbound tourism significantly outperform in their recovery of air connectivity.

  • 5 national markets have now exceeded their pre-pandemic (2019) _total air connectivity _levels: Türkiye, Cyprus, Bosnia & Herzegovina, Albania and Greece. Ukraine has lost all air connectivity while international sanctions have resulted in much lower levels of _total air connectivity _for Belarus and Russia.
  • The UK has overtaken Spain as the European country with the highest level of direct connectivity, with Germany coming in the third position.

Looking ahead, a combination of factors is set to challenge the historical progression and resilience of air connectivity: the aviation market moving back to more segmentation, lack of infrastructure capacity, climate action and related policies as well as geopolitical risks and fragmentation.

Contents:

  1. Passenger Perspective of Air Connectivity
  2. European Air Connectivity - Snapshot
  3. Direct Connectivity
  4. Connectivity to Other World Regions
  5. Hub Connectivity
  6. Connectivity and Airline Business Models
  7. National Markets
  8. What Next for Air Connectivity?