Financial projections released by an airport trade group show that U.S. airports will lose at least $17 billion due to the pandemic.
A Jan. 14 report from the Airports Council International – North America (ACI-NA) found that between April 2021 and March 2022, airports will continue to lose revenue due to prolonged declines in commercial aviation traffic as a result of the COVID-19 pandemic. Those losses are in addition to the $23 billion airports are expected to lose between March 2020 and March 2021.
“The ongoing global pandemic continues to severely impact the finances of U.S. airports,” said ACI-NA President and CEO Kevin M. Burke. “After a very difficult 2020, our airports still face significant revenue losses for the foreseeable future due to the steep, prolonged downturn in passenger traffic. These mounting losses, coupled with increased operational costs, will impede airports from investing in much-needed infrastructure projects at a time when they continue to foot the bill for extensive facility upgrades and enhanced health and safety practices to limit the spread of COVID. Airports greatly appreciate the federal aid they have received so far, which has saved thousands of jobs. The economic report we are releasing today shows they will need additional federal assistance to get through this crisis.”
Passenger traffic levels at U.S. commercial airports remain well below the level forecasted before the pandemic. The low traffic volumes are expected to continue until the vaccine’s widespread distribution is achieved. In 2020, passenger levels fell 65 percent from pre-pandemic projections. Current estimates predict that passenger traffic in 2021 will be 40 percent lower than pre-pandemic projections, or an estimated one billion fewer passengers over the two-year pandemic period.
The report said airports would lose $11.4 billion in lost airport operating revenue, $3.5 billion in additional operational and infrastructure costs related to COVID-19, $1.6 billion in lost passenger facility charges, and $500 million in lost customer facility charge user fees.