Business Travel Decline Undermines Case for Airport Expansion

Industry claims—often echoed by governments—that expanding airports will boost business travel and economic growth are challenged by the new research from the New Economics Foundation, commissioned by T&E. The study, which analysed 274 European regions, finds that the relationship between air traffic growth (both business and tourism) and economic growth is far weaker than commonly asserted.

In more than half (53%) of the regions studied — largely in Northern and Western Europe — the higher income of citizens drives increased air traffic, not the other way around. The analysis finds that air traffic growth is most often a consequence of prosperity, not the cause of it. 

Using statistical clustering, the researchers identified regional patterns linking air transport and economic performance. In regions classified as clusters 3 and 4, the probability that air traffic growth spurs economic growth or business travel is low or even negative. Only in clusters 1 and 2 was a moderate connection observed.

The study highlights a saturation effect in parts of Belgium, the Netherlands, the UK, and Germany, where additional air traffic provides diminishing or even negative economic returns. In these areas, air travel is increasingly dominated by leisure trips abroad, while business travel has stagnated or declined. Between 2019 and 2024, roughly three-quarters of European countries saw business passenger numbers fall below pre-pandemic levels. This is supported by two analyses conducted by T&E’s Travel Smart Campaign, which examined the emissions reductions of a specific group of companies in France and Germany in 2024, compared to 2019 levels. The studies found that business travel decreased by 18% in France and 40% in Germany. 

Despite this clear downward trend, the aviation industry continues to promote airport expansion projects in already saturated hubs such as Frankfurt, London Heathrow, and Brussels, citing economic growth as justification. According to T&E, the findings make it clear that such expansions are economically unjustified and should be halted.

The decline in business travel reflects broader innovation in corporate practice and the use of alternative ways to do business. European companies are increasingly turning to virtual collaboration tools as convenient and efficient substitutes for in-person meetings. When travel is necessary, many are shifting to lower-emission modes such as rail.

Travel budget reductions and growing sustainability policies among both corporate travel managers and employees are also driving the trend. In the BTN 2025 Sustainability Report, 63.5% of European respondents cited climate concerns as a major factor influencing their travel decisions. Additionally, 52% said they are reducing business travel emissions to comply with new sustainability regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD).

Reducing business travel and opting for more sustainable alternatives to travel and attend meetings, benefits more than just the climate. Companies can save significant money by carefully considering whether travel is necessary. Implementing sustainable travel policies also demonstrates that a company values and listens to its increasing employees’ concerns. Furthermore, being conscious of its travel-related emissions and their environmental impact enhances a company’s reputation among the wider public, positioning themselves as an attractive workplace for both current and future generations.