In a post-pandemic context with flaring geopolitical tensions, growing regulatory challenges, as well as intensified efforts to deliver on aviation’s Fly Net Zero 2050 commitment, what short and medium-term prospects can we expect, particularly from a policy standpoint?
An interview with Enrique Garcia and Gonçalo Santos, who oversee together the Portuguese member airlines* and market from IATA’s European Regional Office in Madrid.
Portugal’s air travel market is expanding beyond pre-pandemic levels. In 2019, airline settlements through our BSP system totaled USD 1 billion. In 2024, this figure increased by approximately USD 100 million, a strong indicator of the sector’s continued recovery and expansion. This growth has further reinforced the need for a fit for purpose policy framework that balances expansion with environmental responsibility.
In parallel, as the aviation sector continues to grow, it is essential to focus our efforts on infrastructure and capacity planning. With Lisbon’s current airport at full capacity, and frequent delays particularly during the peak season, the new Lisbon airport project has become a strategic priority for medium-term growth. In the short term, the focus lies on maximizing existing infrastructure to accommodate rising passenger volumes. IATA is participating in ongoing discussions, in close collaboration with the Government and the main stakeholders to achieve this.
Portugal is well-known for its strong tourism sector, which attracts visitors from all around the globe. It represents approximately 12% of Portugal’s GDP, generating USD 20.2 billion in economic output, and supports around 334,600 jobs. This places significant pressure on the country’s existing infrastructure, presenting ongoing challenges for sustainable development.
Focusing specifically on the aviation sector, the latter directly employs 51,000 people, generating approximately USD 4.6 billion in economic output. The proportion of tourism dependent on aviation amounts to 7.1% of the country’s total GDP.
Since 2014, international air connectivity has seen remarkable growth of 88% within Europe and 183% with other global regions.
In addition to passenger transport, air transport plays a vital role in supporting trade, investment, and e-commerce, with around 222,900 tons of air cargo handled annually.
A major opportunity for Portugal’s aviation sector in the medium term is the development of the new Lisbon airport. However, in the short term, the sector must manage continued growth using existing infrastructure, which presents a significant operational challenge.
Last year, the government announced that 40 million Euros hailing from the National Sustainability Fund (Fundo Ambiental) will be reinvested into the aviation sector to support its decarbonization.
To ensure effective and efficient allocation of these funds, two key initiatives have been established: the National Roadmap for the Decarbonization of Aviation (RONDA) and the Alliance for Sustainability in Aviation (ASA). As part of this effort, a comprehensive RONDA plan and timeline will be presented, detailing specific short, medium, and long-term actions and targets to guide the sector’s transition toward sustainability.
Portugal is widely recognized for its excellence in organizing events. In June, we had the pleasure of co-organizing an event with the AED Portuguese Cluster, focusing on addressing the future challenges of the country’s air transport industry. The event brought together key national and international stakeholders, including the Secretary of State for infrastructure, Mr. Hugo Espírito Santo, who has actively participated in several IATA industry events, such as the Wings of Change Europe.
Lisbon will also be host to the 157th IATA Slots Conference in November. This is one of our Association’s largest global events, attracting over 1,300 delegates. The conference brings together representatives from more than 300 capacity-constrained airports, 250+ airlines, and 90+ sponsors and exhibitors from across the globe. The primary objective of this Conference -which takes place twice a year- is to enable airlines to secure the slots that best support their scheduling needs at coordinated airports, an especially relevant topic considering the current capacity constraints at Lisbon’s Humberto Delgado Airport.
*Azores Airlines, EuroAtlantic Airways, Hi Fly, Iberojet, PGA Portugalia Airlines, SATA Air Acores, TAP Air Portugal, White Coloured by You.
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