Impacts of COVID-19 on Aviation and the Airport Business

The ongoing COVID-19 pandemic has resulted in a full-scale crisis with the
imposition of travel restrictions and suspension of flights in a global effort to
contain the spread of the virus. Aviation, and in particular airports, have been
brought to a virtual halt and the industry is in survival mode, crippled by the loss
of traffic and revenues.

Due to the fast and radical shifts in the world and the air transport industry, ACI
continues to periodically update the impact of COVID-19 on airport business. As
of 5 May 2020, ACI World estimates a reduction of more than two billion travelers
at the global level in the second quarter of 2020 and more than 4.6 billion
travelers for all of 2020.

Turning to economics, airport revenue streams have been paralyzed by the

unequalled drop in aviation and commercial activity. The estimated decline in
total airport revenues on a global scale is estimated to be $39.2 billion (USD) in
the second quarter and more than $97 billion for 2020.
Airports must continue to meet their capital expenses obligations as they remain
characterized by predominantly high fixed costs necessary for maintaining and
operating the infrastructure components of the airport, including runways,
taxiways, aprons, parking stands and terminal buildings. The impact of COVID-19
has thus resulted in an existential threat to airports and to the aviation industry at
large.

Airports have adopted immediate measures to manage the pandemic as shown in

ACI World’s recently-released ‘Airport Operational Practice – Examples for
Managing COVID-19’, which describes such measures implemented at major
international airports, gathered from across ACI’s membership. It is available, free
of charge, on the ACI World website.

Indeed, the subject matter experts from World and Regions have come together
to establish a pipeline of free support and information to assist members in
navigating this period. As the industry moves into recovery mode, the information
and technical guidance that we package and provide will be tailored towards
supporting these efforts.

In this regard, ACI has just released a roadmap for the airport industry’s recovery
in response to the COVID-19 pandemic. The ‘Policy Brief – COVID-19: Relief
Measures to Ensure the Survival of the Airport Industry’ – outlines exceptional
measures to provide policymakers with a comprehensive toolkit of solutions to
ensure that the airport industry can be sustained through the crisis and lay the
foundation for recovery.

Briefly, these include the protection of airport charges and revenues, tax relief,
concession fee waiver, the temporary suspension of slot usages, the continuity of
air cargo operations and comprehensive financial relief. These measures will
ensure that financial assistance does not benefit one part of the industry over
another.

In addition, ACI is part of ICAO’s Council Aviation Recovery Task Force (CART),
comprised of a number of its Member States, international organizations, such as
WHO, and industry bodies. Over the coming weeks, the group will agree on a
series of recommendations focusing on the restart and the recovery phases of
getting the aviation industry moving again.

The bottom line is that airports are important engines of economic growth,
wealth creation and employment. ACI pledges to support its members through
the global crisis and to do its part in building a thriving and resilient aviation
industry.