Jetrader

Regional Aviation’s Role Extends Beyond Feeding Major Hubs

Regional aircraft serve markets that larger aircraft cannot always reach economically or operationally. At ISTAT EMEA, airline, leasing, appraisal and manufacturing executives discussed the role regional fleets play in connecting smaller communities, along with the limited supply of aircraft available to meet that demand.

At the event, held 13-15 September 2026 in Copenhagen, speakers described regional aviation as serving purposes ranging from feeding major hubs and testing new routes to providing transportation for communities with few alternatives.

During the Regional Aircraft Panel, Mia Jakobsson, head of fleet management and PMO at Braathens Regional Airlines, said regional aviation provides frequency and availability while allowing airlines to right-size capacity. Regional aircraft can bring passengers into hubs while also giving airlines a way to test new routes.

Sylvain Gloux, director of fleet at Loganair Limited, said regional aircraft can serve smaller markets and airports that cannot be accommodated by narrowbody or widebody aircraft. He described two primary roles: feeding larger airline hubs and independently providing connectivity to communities.

Loganair’s service includes transporting doctors and nurses to regions where medical services are not locally available, as well as students and teachers.

“We see ourselves as critical infrastructure to help a region thrive,” Gloux said.

Aircraft Supply Remains Limited

That demand for regional connectivity is meeting a constrained aircraft market.

Mathieu Duquesnoy, chief marketing officer at Abelo, said during the Regional Aircraft Panel that regional aviation has historically played an important role during periods of uncertainty, when airlines have used regional aircraft to reduce costs while maintaining a presence in the market. He expects regional airports to be used increasingly as complements or alternatives to narrowbody operations.

“The supply is low, and demand is high,” Duquesnoy said. “This imbalance is here to stay for years to come.”

Kane Ray, head of general aviation and aftermarket at IBA Group, said half-life market values for common regional aircraft types have risen about 15% since 2023. He identified the E190, ATR 42-600 and ATR 72-600 as standouts since 2023. Over the three-year period he discussed, the Q400 was the standout, while the CRJ700 and CRJ900 also performed well.

Ray also cautioned that database figures showing aircraft in storage can overstate actual availability because some of those aircraft are not technically viable for a return to the market. Asked whether he expected tight supply to change, he said he did not.

The effects are being felt by operators. Jakobsson said operating costs have been increasing every year, while Gloux said parts availability and turnaround times have a disproportionate effect on regional airlines because of their lower margins.

Air Greenland Matches Aircraft to an Unusual Network

Air Greenland illustrates how geography and infrastructure can determine fleet requirements.

During an Airline Fireside Chat, Air Greenland CEO Jacob Nitter Sørensen described a diversified 32-aircraft fleet spanning six aircraft types, with another type expected to join it. The airline uses its fleet for scheduled passenger service as well as government contracts, medevac operations, and helicopter services.

Air Greenland operates a single A330-800. Sørensen said the airline studied alternatives, including outsourcing and operating two narrowbodies, before determining that the widebody was the best solution for its network.

The specific A330 variant was also driven by Greenland's infrastructure. Sørensen said a 2,200-meter runway becomes particularly restrictive when ice and snow are present. Air Greenland concluded that the A330-800 could meet those requirements without the load restrictions that would have affected the larger A330-900.

At the other end of the fleet, Air Greenland relies on the Dash 8 to operate into short and steep runways.

“The Dash 8 is a fantastic aircraft,” Sørensen said. “It can operate on short runways that are also steep. It’s a challenging operation, and it’s the only aircraft that can do it.”

Replacing those aircraft presents a challenge. Asked about Air Greenland's plans for replacing its Dash 8s, Sørensen said there is currently no suitable replacement. He said the airline has spoken with ATR, but its options at present are to extend runways or wait for new technology.

Airport Investment Opens New Opportunities

Changes on the ground are also affecting Air Greenland’s network.

Sørensen said Greenland’s government has been expanding airport infrastructure as part of efforts to develop the country’s economy. A new airport opened in 2024, with two more opening in 2026, all capable of accommodating widebody flights. He said the new infrastructure has increased tourism, business activity, and interest in Greenland.

Looking ahead 10 years, Sørensen said he does not expect Air Greenland to add more widebodies, but he anticipates adding two or three more A320neo-family aircraft. He said those aircraft would support route growth to North America and additional European cities. He also sees opportunities for the airline's charter business tied to mineral exploration and defense.

Air Greenland’s role extends beyond commercial passenger service. Sørensen described aviation as a lifeline in communities where people rely on air transportation to reach schools, hospitals, funerals and weddings. The airline also performs medevac and search-and-rescue work and has signed a contract with the Danish Defense for maritime and environmental surveillance.

Manufacturers See Continued Demand for Regional Aircraft

Manufacturers at ISTAT EMEA also pointed to the continued role of smaller aircraft.

During the OEM Panel, Vagner Ricardo, head of global aviation market and airline business at Embraer S.A., said the backlog for small narrowbody aircraft has grown about 50% since the pandemic. He said airlines are using smaller narrowbodies to complement larger aircraft and that the E2 is now flying on every continent.

Jean-Charles Burguiere, head of leasing markets and asset management at ATR, said regional aviation remains the only form of commercial air service available at many airports.

“Out of 4,000 commercial airports on this planet, 40% rely only on regional aviation,” Burguiere said. “One-third rely only on turboprops.”

ATR has 1,300 aircraft operating across 100 countries with 200 operators, according to Burguiere. He also said orders have increased since the pandemic and that ATR had registered 54 orders in 2026 at the time of the panel, with more in the pipeline.

Asked how the sector could look in five years, Duquesnoy said he expects growth, while Jakobsson and Gloux discussed the potential for further consolidation. Ray pointed to an ongoing move toward larger aircraft but also noted the lack of aircraft in the order book.

Gloux also pointed to the potential role regional aviation could play as new aircraft technology develops.

“If we’re looking at the regional space — there is a great opportunity in this space,” Gloux said. “Most likely regional aviation will be at the forefront of new technology.”

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