T&E report claims air passenger growth does not drive economic growth despite contradicting evidence

Transport & Environment (T&E) today released a report claiming that air passenger growth does not drive economic growth. This assertion contradicts a wide range of academic and empirical studies demonstrating the strong link between air transport and economic development, as well as the broad socioeconomic benefits it provides.

Even more surprising, T&E’s own report provides empirical evidence up to 2023 that air connectivity is associated with higher GDP per capita. On page 13, it states that “the best estimate of the MG model is that a 10% increase in air connectivity is correlated with a 0.5% increase in GDP per capita, when averaging across Europe.” This clearly confirms the positive relationship between connectivity and economic performance.

The report seeks to challenge the notion that growth in air connectivity supports economic growth. However, overwhelming evidence confirms a causal link. The SEO Economics study commissioned by ACI EUROPE, cited by both T&E and NEF, directly addresses the bi-causal relationship between aviation and economic growth. In addition, the independent academic study by Pot and Koster, also referenced by T&E and ACI EUROPE, demonstrates a clear connection between air transport and development.

T&E’s argument that some northern European countries lose out because citizens travel to southern Europe overlooks the network benefits of aviation. The reality is that aviation generates a positive outcome for overall European welfare, aligning with the EU’s principle of equality.

Olivier Jankovec, Director General of ACI EUROPE, commented: “Negating the economic and social realities of our sector by making unrealistic assumptions and slicing data into meaningless clusters is akin to disinformation.”

He added: “This is the last thing Europe’s policy makers, businesses and citizens need to address the dual challenge of competitiveness and sustainability that now stands at the very top of EU and national priorities. We all need to work constructively, honestly, and cooperatively to address this unprecedented challenge.”

ACI EUROPE’s full Benefits of Airports & Air Connectivity Report is available online, offering detailed analysis of how air connectivity supports economic growth, regional development, and European prosperity.

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