INTERNATIONAL. Airports Council International (ACI) this week forecast that global airport passenger traffic would grow by between +3% and +4% in 2010 compared to 2009. The organisation raised its forecast from the previous +2% it predicted in December as a result of the recovery in the global economy.
Speaking at the opening session of the second annual ACI Airport Economics & Finance Conference in London, ACI World Director General Angela Gittens said: “Traffic results are improving in all regions, and the emerging Brazil, Russia, India and China (BRIC) markets have led the way, first with increases in domestic and now in international traffic. As a result, our updated outlook for growth foresees a +3% to +4% upturn in 2010.”
However, Gittens added, the industry still needed to be cautious about the year ahead. “What we have not revised is that we still live in erratic times, and we face the financial impact of weak airlines, diminishing government relief packages and tight lending markets.”
In her speech Gittens reviewed recent financial data from the ACI annual Economics Survey, noting the significant shift in aeronautical revenue sources from aircraft to per passenger charges. She said that airports, despite the difficult economic situation, have held user charges to airlines globally at less than 4% of airline operating costs.
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ACI Director General Angela Gittens: “Our updated outlook for growth foresees a +3% to +4% upturn in 2010” |
Airport income worldwide was US$96 billion in 2008 (the figures for which were used in the Economics Survey), with non-aeronautical revenues accounting for 46% (or US$44.1 billion) and aeronautical 54%.
Gittens noted that airport operating expenses reached US$55 billion in 2008, consuming 57% of airport revenues. She flagged security costs as a significant concern for airports, as they are often decided in reaction to an incident by governments under pressure, she said, with little security risk evaluation and no analysis of the cost impact for airports.
Gittens said: “Capital expenditure continues to rise. All told, the airport industry is managing US$250 billion in debt and has added US$26 billion in annual capital cost to the airport industry balance sheet in 2008.”
Demands on airport capital intensive business and airport financial management have broadened over time, she said. Today’s airport manager must balance the investment and service demands of a diverse constituency: airlines, owners, communities, passengers, our management and our staff, added Gittens.
“Airlines continue to pressure airports to help them balance their books,” she noted. “On the one hand, low-cost carriers demand no-frills facilities, whereas the alliances want consolidated terminal operations and features that suit their business model. Accommodating these changes adds costs to operations, terminal equipment and passenger processing.”
