ACI Asia-Pacfic: Coronavirus 'will significantly set back' growth prospects for airports

ACI Asia-Pacific warned (09-Mar-2020) the prolonged COVID-19 outbreak "will significantly set back the region's airports from previously forecasted growth prospects". The association urged regulators and governments to implement "well defined adjustments and relief measures tailored to suit local level contexts". Details include:

• Asia Pacific passenger volumes are down 24% in 1Q2020, compared to forecasts that do not include COVID-19;
• Mainland China, Hong Kong and South Korea "remain at the centre of the effects" of the outbreak, with "sizeable" losses in traffic volumes;
• Several Middle East countries have recorded a "sharp spike" in COVID-19 cases, which is expected to result in a 4.2% downturn in traffic as travellers and airlines adjust their plans and capacity in the coming days and weeks;
• Airports' aeronautical and non-aeronautical revenues are registering similar declines to traffic. COVID-19 is expected to have a revenue loss impact of USD3 billion;
• ACI Asia-Pacific director general Stefano Baronci said the severity of the situation requires close cooperation between airport operators and policy stakeholders to identify options to address the crisis.

Mr Baronci commented: "Unlike airlines, who can choose to cancel flights or relocate their aircraft to other markets to reduce operating costs, airport operators manage immovable assets that cannot be closed down. They are faced with immediate cash flow pressures with limited ability to reduce fixed costs and few resources to fund capacity expansion efforts for longer-term future growth". [more - original PR]