Airports Council International (ACI World) said that «the latest airport data reveals the industry’s financial recovery trends» around the globe.
The information comes from the 2023 edition of the Airport Economics Report published today by the organisation about the industry’s financial performance in 2021. The report presents data from more than a thousand airports «of all sizes and business models», which accounted for around 82% of all traffic prior to the start of the pandemic.
It is an annual report that sets out a comprehensive analysis of airport industry revenues. It considers the source of these revenues, operators’ costs and global trends. «This year’s report presents an overview of the industry’s financial recovery trends across the world as it emerged out of the pandemic», remarked Luis Felipe de Oliveira, ACI World Director General.
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Key facts from the ACI report
- In 2021, the airport industry experienced continued financial impact as a result of the pandemic.
- The average cost per passenger far exceeded average revenues, due to the very nature of the business and its fixed costs.
- Airports increased their debt. According to ACI, this was due to increased financial pressure and the need to invest in infrastructure.
- The ratio of industry debt to gross operating profit before expenses was 13:1. Before the start of the pandemic, this ratio averaged 5:1.
- Aeronautical revenues were the largest source of income for airports, representing 50% of the total.
- Airports exploited other sources of revenue, especially those linked to real estate development. This is explained by the uncertainty of the sanitary situation and changing market conditions.
«Under a regulated regime of airport charges that do not adjust to actual market and demand conditions, there should be full awareness of the fact that the regulated formula that protects airlines in good times also requires protecting airports in bad times», said de Oliveira.
In this regard, he stated that «beyond the impact of the pandemic, airports need the support of governments through better global policy frameworks on airport charges».
«Regulators and the rest of the aviation ecosystem must work together, so airports can continue to play a vital role in the global economy, serving as critical infrastructure for the movement of people and goods», he concluded.
See also: ACI and CANSO launch programme to facilitate sustainable growth in travel demand
