USA. The US government has pledged US$10 billion in direct assistance to airports as part of its US$2 trillion stimulus package for the economy, which was agreed yesterday.
Concessionaires’ interests are not directly addressed in the bill but associations including the International Association of Airport Duty Free Stores, the Airport Restaurant and Retail Association and the Airport Minority Advisory Council are pushing for a share of the airport relief package. They have urged airports to offer rent relief and other financial measures, as well as halting leasing processes until the COVID-19 crisis is under control.
Airports Council International–North America (ACI-NA) has applauded the agreement between Congress and the Trump Administration, saying it would “provide needed relief for US airports facing at least $14 billion in losses because of the coronavirus (COVID-19) global health pandemic”.
“The entire airport industry is extremely grateful Congress and the Trump administration have stepped up to help offset a portion of the US$14 billion and counting that airports will lose this year as a result of the steep, unexpected drop in travel brought about by the coronavirus health pandemic,” said ACI-NA President and CEO Kevin Burke.
“American airports rightfully took immediate precautions to guard against the spread of COVID-19, long before the virus started to spread to thousands of people in the United States, and they will continue to do so.”
Based on preliminary assessments by ACI-NA, the COVID-19 outbreak will cost US airports at least US$13.9 billion in calendar year 2020. The estimate is based on the following projections:
- Passenger traffic at US commercial airports is expected to fall by -73% in the March to June period, which represents a -53% decrease in the first half of 2020 and a -37% drop for the full year compared to forecasted 2020 levels.
- Total passenger enplanement is anticipated to fall by 244 million in the first half of the year and 349 million for the full year.
- Total airport operating revenue is expected to decrease by roughly US$12.3 billion for the calendar year, representing a nearly -49% reduction driven by cancellations and other reductions in domestic and international air travel, as well as dramatically lower non-aeronautical revenue.
- Collection of the Passenger Facility Charge, a critical funding source for US commercial airports, is expected to fall by close to US$1.6 billion in 2020.
ACI-NA added: “The total outstanding debt for US commercial airports stands at around US$100 billion. US airports will have to pay US$7.4 billion in cash payments to service those debt obligations. American airports also face increasing operating expenses due to increases in custodial costs associated with more frequent cleaning of public areas and restrooms, more and upgraded supplies, extra shifts and staffing, additional hand sanitisers in airport public areas for passengers and employees, and additional education and training for airport employees and contractors.”
