Aviation competitiveness Germany’s Aviation Competitiveness Under Pressure

Source: Press release German Aerospace Center (DLR) | Translated by AI 4 min Reading Time

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A new joint economic report by the German Aerospace Center (DLR) and the German Aviation Association (BDL) examines key developments in Germany’s aviation sector, highlighting changes in connectivity, passenger flows, regulatory conditions, costs and the transition towards climate-compatible air transport.

Economic report on Germany as an aviation location: connectivity, competitive conditions, climate impacts and development.(Source:  william87—stock.adobe.com)
Economic report on Germany as an aviation location: connectivity, competitive conditions, climate impacts and development.
(Source: william87—stock.adobe.com)

Global air transport recovered from the coronavirus crisis faster than widely expected. At the same time, however, significant structural changes are becoming apparent in the aviation market, particularly in Europe. This is one of the findings of the economic report on Germany as an aviation location, published jointly for the first time by the German Aerospace Center (DLR) and the German Aviation Association (BDL). Among other things, the report examines developments in connectivity and passenger flows as well as challenges relating to climate protection and regulation.

The report, presented in Berlin on 5 October 2026, analyses key developments in air transport over a period of up to 15 years and assesses their significance for the economy, mobility, climate protection and international competitiveness.

“Air transport is a central component of an efficient mobility system and indispensable for Germany as an internationally competitive economic location. With the joint economic report, we are creating a fact-based foundation for discussions about the future of our aviation sector. This makes it possible to assess long-term developments on the basis of reliable data,” says Dr Markus Fischer, DLR Executive Board Member for Aeronautics.

“The report shows a gradual detachment of Germany from international air transport,” adds Dr Joachim Lang, Director General of the BDL. “Connections are being discontinued, while passengers and freight are shifting to hubs outside Europe. For an export-oriented nation, this is a problem for its economic location. And nothing is gained for the climate if emissions are merely shifted elsewhere. We need lower location costs and a level playing field in climate protection regulations so that all competitors operate under the same conditions.”

Number of destinations declined after the coronavirus crisis

According to the report’s analysis, the air transport sector and aviation industry generated gross value added of €58.4 billion (approx. 65 billion USD) in Germany in 2024. Around 536,900 jobs were directly or indirectly associated with aviation. The sector therefore accounted for approximately 1.3 per cent of Germany’s gross domestic product.

The report shows that the quality of air transport connections is crucial for internationally connected economic centres. Factors assessed include destinations that can be reached directly, flight frequencies and services at the beginning and end of the day for business travel—meaning connections in the early morning and late evening.

Between 2014 and 2019, the number of directly accessible destinations at many German airports increased more rapidly than the number of departures. The route network therefore became broader. Following the coronavirus pandemic, airports developed differently. In 2024, Frankfurt was once again approximately at pre-crisis levels in terms of direct destinations, while the other major locations remained significantly below 2019 levels, with up to around 18 per cent fewer destination airports. Flight frequencies and early-morning and late-evening connections also declined in many locations.

Hubs outside the EU used more frequently

Since 2010, significant shifts in transfer patterns and hubs have emerged in intercontinental air transport. Passenger flows on long-haul routes are increasingly shifting towards hubs outside the European Union, particularly in Turkey and the Gulf region. Between Germany and destinations in East and Southeast Asia, the share of connections via non-EU hubs increased from 34 to 54 per cent. At the same time, the share of connecting journeys via German hubs fell from 56 to 36 per cent. Similar developments can be seen in air transport to Africa.

Average ticket prices doubled between 2010 and 2024

The report also examines the impact of regulatory conditions and rising location costs. State-imposed costs for air transport in Germany—including aviation tax, aviation security charges and air navigation charges—have more than doubled at their peak since 2019. On average, they now amount to around €30 (approx. 33 USD) per passenger.

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At the same time, average ticket prices for flights departing from and arriving in Germany doubled between 2010 and 2024, rising from just under €150 to around €300 (approx. 168 to around 335 USD) most recently. In addition to government charges, higher personnel and operating costs, among other factors, are contributing to this development.

The report also highlights the importance of competitively neutral regulatory conditions for climate protection. In some cases, different requirements and cost structures result in traffic flows and emissions being shifted to regions outside Europe (“carbon leakage”), without reducing global emissions.

Air traffic growth through more efficient fleet utilisation

According to DLR forecasts, the global number of air travellers will rise to 154 per cent of the pre-coronavirus level by 2034. The number of passengers is growing significantly faster than the number of flights. This is due to larger and more efficient aircraft with higher seating capacity.

Climate protection and technological development

Air transport currently accounts for around three per cent of global CO2 emissions. When non-CO2 effects such as contrails and nitrogen oxides are included, its share of global climate effects is around five per cent.

The report examines various approaches that can reduce these effects. These include more efficient aircraft, sustainable aviation fuels (SAF), optimised flight routes and the reduction of persistent contrails. Initial analyses indicate that, in individual cases, such climate effects can be reduced through adapted flight planning.

“Global demand for air transport will continue to grow. More efficient aircraft, higher load factors, sustainable fuels and optimised flight routes are key levers for combining mobility and climate protection,” says Dr Florian Linke, Director of the DLR Institute of Air Transport.