Page 52 - World Airnews Magazine May 2020 Edition

NEWS DIGITAL

THE IMPORTANCE OF THE

AIRPORT INDUSTRY

The Airports Council
International (ACI) World has
published its annual Airport
Economics Report and Key
Performance Indicators which
show the important role that
the airport industry plays in
fostering global economic
prosperity.
The reports include key
financial data on developments
in the airport business for development once business as sources of non-aeronautical year-over-year growth
the financial year 2018. They usual operations resume, any revenue to bolster the revenue (2018/2017): -1.7%
provide a snapshot of a healthy decrease in revenue may have collected from aeronautical • Distribution of global
and globally profitable industry a dramatic impact on airport activities. revenues: aeronautical
before the advent of the development, and in turn on Airport revenues grew (55.9%), non-aero-
COVID-19 pandemic and serve the airline business. less than traffic and the nautical (39.2%) and
as an indication of how crucial “This is because aviation decrease in aeronautical and non-operating (4.9%)
a fair, balanced, and equitable is an interdependent and non-aeronautical revenues on a • Global airport revenue
recovery from the pandemic interconnected ecosystem, per-passenger basis of 2.3% and per passenger: (US)
will be for aviation and the and, in order to stay afloat, it 2.2% respectively are reflective $17.95
global economy. will require a coordinated and of the diverse market forces
“The COVID-19 outbreak has strategic response to overcome shaping airport pricing. • Global aeronautical
resulted in an unprecedented the unexpected difficulties and revenue per passenger:
and dramatic decline in air get back on track as soon as Airport charges and capacity (US) $10.03
travel this year,” ACI world possible.” constraints require flexible • Global non-aeronautical
director general Angela Gittens solutions that move away from revenue per passenger:
said. strict forms of pricing regula- (US) $7.03
tion, considering the long-term
“Airport revenue generation ACI’s Economics Report found forecasts for global air service • Total cost per passen-
and growth are directly linked that global industry revenue demand still show the potential ger: (US) $13.76
grew by 4.3% to reach (US)
to traffic levels and the global $178.2 billion in 2018, but that for growth. • Ratio of aircraft-related
airport industry is expected to revenue per passenger declined The publications include com- to passenger-related
lose (US) $76 billion in 2020. by 1.7%. The distribution of prehensive data from a sample charges: 38:62
“Our Economics Report and global revenues was: of more than 900 commercial • Distribution of
KPIs show the immense value a airports with in-depth analyses non-aeronautical reve-
healthy and successful airport of air transport demand, nue by key source: retail
industry provides to the global • Aeronautical revenue: airport revenues and costs. The concessions (28.9%),
economy and illustrates why as- 55.9% main drivers of aeronautical car parking (20.4%) and
sistance and relief is needed for • Non-aeronautical and commercial revenues, and property and real estate
the sector to ensure essential revenue: 39.2%, and sources of airport costs, are income or rent (14.9%)
operations and protect millions • Non-operating revenue: analyzed over time and across • Operating expenses to
of jobs. 4.9%. various dimensions. capital costs ratio: 65.9%
“Airports are facing difficult to 34.1%
prospects right now because Global airport revenue per A snapshot of key industry • Largest operating
a significant proportion of passenger was $17.95, of facts for the 2018 financial year expense categories:
airports’ costs - capital costs which aeronautical revenue revealed: personnel expenses
in particular - are fixed, leaving accounted for (US) $10.03 and (33.9%) and contracted
less of a cushion during a non-aeronautical revenue (US) • Global industry revenue services (24.9%) • Global
downturn, especially one of this $7.03 (the remainder is non-op- year-over-year growth debt-to-EBITDA ratio:
unprecedented magnitude. erating revenue). Significantly, (2018/2017): 4.3% 4.48
“As a significant portion of total cost per passenger was • Global industry revenue: • Global return on
airport revenues goes to fund (US) $13.76, further illustrating (US) $178.2 billion invested capital (ROIC):
the much-needed capacity the importance of developing • Revenue per passenger 7.1%. Q

World Airnews | May Extra 2020
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