INTERNATIONAL. Airports Council International (ACI) today released its annual Economics Report on the health of the global airports business (based on final 2008 figures).
Airport income worldwide was US$96 billion, with non-aeronautical revenues accounting for 46% (or US$44.1 billion) and aeronautical 54%. In 2007, non-aeronautical income was US$40.5 billion.
Within non-aeronautical revenue, retail was the largest contributor, closely followed by car parking and property management, with significant regional variations, noted ACI.
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The organisation said that the “income and financial viability [of the industry] is increasingly reliant on passengers and non-aeronautical business activity in and around the airport”.
ACI Director General Angela Gittens said: “The financial data for 2008 reflect the year’s business environment: early year positive results, and then the financial turmoil that rocked global markets and provoked a stark economic recession. Airports revised expansion plans in many cases and continued to devise efficiencies to enable their long-term capacity needs.
“The cyclical nature of our aviation business means has taught us that we must look beyond the current situation, no matter how tough, and prepare for fundamental demand trends. Our communities need that stability and count on us to continue operations in a safe, secure and environmentally friendly manner.”
The Airport Economics Survey 2009 drew a strong response this year with participation from 709 airports whose business represents approximately 3.4 billion passengers – 70% of worldwide traffic in 2008. The report provides analytical commentary based on key performance data, focusing on airport revenue streams, costs, capital expenditure and employment.
Airports worldwide in 2008 incurred operating expenses in the amount of US$55 billion, or 57% of revenues.
The largest single expense item reported was staff cost, accounting for 38% of operating expenses. Security (excluding staff) incurs 11% of operating cost, slightly higher than maintenance cost.
Capital Expenditure
In light of the global economic recession, a number of projects at airports around the world have been delayed, staggered or put on hold, but the large majority of projects already underway continue as planned, ACI noted.
Capital expenditure at airports worldwide remained roughly stable in 2008 at US$39.5 billion, slightly less than the US$40.1 billion spent in 2007. For 2009, capital expenditure commitment is expected to rise by +6% to US$42 billion.
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These figures do not include new (greenfield) airports, and neither do they include capital investment in the Middle East and China. In light of the significant airport expansions and modernisations announced in these countries, ACI estimates that the total figure is likely to be US$44 billion in 2008 and to reach US$46 billion in 2009, down from last year’s surveys estimates made prior to the steep traffic declines in the first part of 2009.
Outlook
ACI concluded: “Aviation remains a growth industry, despite the lingering economic downturn. Barring a major setback in 2010, traffic is expected to rebound and may well exceed moderate predictions of +2% next year.
“It is for this reason that “˜old’ issues of capacity and congestion will surface sooner rather than later and airport financial decisions reflect the lead time needed to plan for, develop and implement airport expansion projects. With passengers driving airport revenues, facilities must satisfy their expectations for efficient service in the future.”
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