The European Regions Airline Association (ERA) General Assembly in Estoril, Portugal, has been discussing ReFuelEU’s impact on regional airlines.
ReFuelEU mandates 2pc SAF use in 2025, increasing to 70pc by 2050, but supply is concentrated at major hubs. Regional carriers face cost and compliance challenges, risking 15pc of routes by 2030 without exemptions.
ERA proposes €500m in subsidies to cover 30pc of transition costs for smaller operators.
ERA released a study titled “Cutting emissions without cutting connections: How to make ReFuelEU work for all of Europe’s airlines” during the conference. The research shows that SAF supply concentrates at major hubs, leaving smaller airports without access and exposing remote communities to higher costs, compliance burdens, and reduced connectivity.
ERA airline CEOs stressed that the sector commits to net-zero CO₂ emissions by 2050, but ReFuelEU’s rollout risks disadvantaging smaller airlines and isolating the communities they serve.
The three-day event at the Estoril Congress Centre drew 400 participants from over 220 aviation businesses , including executives from ERA’s 55 airline members and airport operators.
Under the Destination 2050 roadmap, SAF expects to deliver the largest share of aviation’s emission reductions. ERA members report that early implementation remains fragmented and unfair, pushing airlines to redesign networks and threatening some routes.
Key issues include unfair access to SAF at regional airports, cost distortions from opaque surcharges and bundled pricing, compliance traps from complex reporting rules, and operational risks from Article 5, known as the anti-tankering rule, which creates safety and cost impacts on lifeline routes without environmental benefits on smaller aircraft.
ERA calls on EU policymakers to revise the ReFuelEU Regulation to scale up SAF fairly across regions and align implementation with the Sustainable Transport Investment Plan (STIP) funding priorities. A revised framework would accelerate SAF deployment, strengthen competition, deliver emissions reductions, and protect air connectivity.
The conference opened with a CEOs’ Breakfast led by Montie Belgrave, ERA chief executive, who noted that regional carriers operate 40pc of intra-EU flights but account for 20pc of emissions. He called for tiered implementation timelines to allow smaller operators time to source fuels, priced at €1,200 per tonne compared to €800 for conventional kerosene.
ERA proposes subsidies covering 30pc of transition costs, estimated at €500 million across members in the next five years.
Afternoon workshops covered fleet renewal challenges, with presentations on hydrogen-powered aircraft trials set for 2028. Deutsche Aircraft exhibited its D328eco turboprop model, designed for 40 passengers with 30pc lower fuel use, and secured orders from three ERA members for deliveries starting in 2027.
Networking took place in the exhibition area, where suppliers showcased ground handling software and noise reduction technologies compliant with EU airport standards.
The Awards Dinner honoured Loganair as Airline of the Year for maintaining 95pc on-time performance across 1,000 weekly flights. Brussels Airport received the award for regional connectivity enhancements, and Air Nostrum earned recognition for its safety record.
Social events included a gala at the Casino Estoril, attended by Portuguese transport minister Joao Cravinho, who pledged €100 million in national grants for green airport upgrades.
Delegates arrived via Lisbon Airport, 30 kilometres from the venue, with taxi fares at €40 for the 25-minute journey. Uber services operated outside terminals.
The assembly follows ERA’s Regional Airline Conference in Copenhagen in March and precedes the 2026 event in Belgrade. ERA statistics for 2025 show member airlines carrying 120 million passengers on regional routes, supporting 250,000 jobs in Europe.
The association lobbies the European Commission for ReFuelEU adjustments ahead of the December review.
Montserrat Barriga, Director General of ERA, shared: “Europe’s green transition cannot come at the cost of territorial regional cohesion. If ReFuelEU continues on its current path, Europe risks seeing airlines go bankrupt and losing vital air connectivity. Balanced policies ensure aviation’s role in territorial cohesion without disproportionate burdens on rural economies.”
Montie Belgrave shared: “Balanced policies ensure aviation’s role in territorial cohesion without disproportionate burdens on rural economies.”
