Passenger Air Transport in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Passenger Air Transport in France industry analysis

France is a key player in global aviation markets, with French airlines transporting a significant share of the more than 150 million passengers passing through French airports each year according to Eurostat. France’s passenger air transport industry experienced a period of prosperity before the pandemic, with air passenger numbers recording steady growth from the aftermath of the global financial crisis through to the onset of pandemic-related travel restrictions.
Revenue is forecast to expand at a compound annual rate of 21.8% over the five years through 2025, reaching €29.9 billion. The pandemic inflicted unprecedented disruption to global aviation markets in 2020, with French airlines forced to ground their fleets in response to lockdowns and restrictions placed on international travel. These measures continued to suppress passenger numbers and revenue through 2021, leaving French flag carrier Air France dependent on government bailouts to remain operational. Thanks to the lifting of travel restrictions on August 1 2022, revenue shot up over the two years through 2023. This recovery is set to continue through 2025, as passenger demand returns to pre-pandemic levels. However, the industry remains challenged by inflationary pressures, which have weighed on discretionary spending, as well as new legislation aimed at decarbonising the transport sector, including a ban on short-haul flights and increased airline taxes. Revenue is set to climb by 1.8% in 2025.
Over the five years through 2030, revenue is forecast to inch up at a compound annual rate of 0.6% to reach €30.8 billion. Passenger demand is set to continue to grow, albeit slower than in the previous few years as passenger numbers are set to have recovered to pre-pandemic levels in 2025. Ongoing decarbonisation efforts, including fleet renewal and the use of sustainable aviation fuels (SAFs), will be crucial in aligning with environmental targets. Along with recent tax hikes, rising costs associated with meeting more stringent environmental legislation are set to inflate airfares in the coming years, threatening growth in air passenger numbers.

Trends and Insights

• Airlines power on past COVID-19 disruption. The pandemic decimated revenue by bringing travel to a standstill, but airlines have bounced back through agile operational adjustments, maintaining essential connectivity during challenging times.
• Airlines diversify their services and explore new markets. This is helping companies adapt to evolving travel trends and address diverse consumer needs.
• The dominance of a handful of airlines creates competition concerns. Though high concentration helps keep the market stable, consumers have fewer airlines to choose from.