Covid-19 To Wipe Out Half Of Airport Revenues In 2020: Report

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With global passenger traffic reducing by two-fifths of the global air passenger traffic in 2020, the Asia-Pacific airports will be logging 42.1 per cent negative growth, a report by Airport Council International (ACI) said.

The Airports in all regions will lose passenger traffic at double-digit rates and Asia Pacific (APAC) appears to be the most affected, with an estimated negative 38.9 per cent loss in volume for the first three months of the year, followed by Europe (-23.9 per cent) and North America (-20.7 per cent), the report said.

The latest estimates show the reduction in global passenger traffic for the Quarter Q1 2020, declined by (-) 28.3 percent. The monthly decline being (-) 6.9 per cent in January to (-)22.9 per cent in February and (-) 53.1 per cent in March.

With no solutions or vaccine in sight any projections for the Q2 would be a challenge amid general uncertainty about air travel, it said. With most of the governments suspending the air transportation and no end to when it will restart

Total revenue of the airports across the world is expected to drop by as much as 45 per cent, with the highest decline (49 per cent) likely to be reported in North America followed by APAC region (48 per cent), as per the ACI.

Altogether, the COVID-19 outbreak will wipe almost half of airport revenues in 2020, it said.

Amid these passenger revenue losses, the ACI said there is a need for the protection of airport charges and revenues as airports will need to ensure the continuity of basic services.
The ACI has also demanded a waiver or postponement of airport rents and concession fees in the form of a one-time measure for a defined period, among other measures to mitigate the impact on the business.