The Airports Council International (ACI) World called on regulators to support the economic sustainability of airports Monday, citing them as social and economic engines worldwide.
The move follows ACI World Resolution Restoring Economic Equilibrium, which urges the government to acknowledge that airports in some jurisdictions have a changed risk profile due to the pandemic and require regulatory support to restore economic equilibrium for unrecovered costs through financial compensation or future airport charges.
“It is vital that international and national regulators support the economic sustainability of airports as crucial players in the health of the entire aviation ecosystem,” ACI World Director General Luis Felipe de Oliveira said. “Restoring the economic equilibrium of airports through financial compensation or through future airport charges is necessary for investing in the infrastructure needed to accommodate the growth of air travel and meet decarbonization targets, as well as maximize airports’ contribution to the United Nations’ Sustainable Development Goals and wider socio-economic effects.”
Oliveira said that airport charges should adjust to market conditions. Regulated formulas that protect airlines in good times should protect airlines in bad times, as well, he said, and costs incurred for aeronautical services through the pandemic need to be recovered through charges and fees, especially when government support was not sufficient to cover costs.
The organization said the lasting impact of the COVID-19 pandemic on airport passenger travel had resulted in a decline of 61 percent in 2020 compared to 2019, or 3.6 billion passengers in 2020 compared to 2019’s 9.2 billion. The effects on airport revenues since have resulted in capital expenditure reductions, with insufficient government financial support or relief. ACI said many airports had to re-finance their operations, adding to their debt burden.
A recent International Air Transport Association (IATA) report found that airports and airlines have had the weakest economic performance amongst not only all aviation sectors but all major global industries. ACI said this exemplifies the need for increased collaboration between stakeholders to create value for the traveling public and communities.
“This should not be a zero-sum game,” de Oliveira said. “Like airlines and other aviation stakeholders, airports are businesses that continue to be affected by the pandemic’s economic impact, energy costs, staff shortages, and other inflationary pressures felt by the entire industry. However, what is unique to airports is that they face high fixed costs irrespective of economic conditions and do not have the same level of flexibility in managing capacity. With continued economic headwinds and global passenger traffic expecting a loss of 27% in 2022 as compared to 2019, a balance must be struck in order to restore the economic equilibrium of airports.”