8-Mar-2016 3:24 PM
ACI: Many airports moving to passenger-based revenue schemes
Airports Council International (ACI) released (07-Mar-2016) its Airport Economics Report and Key Performance Indicators for 2014, noting that there are "two forces at play in the global economy, which have pushed the pendulum in opposite directions". According to the ACI analysis, as advanced economies get back on course, the emerging market slowdown has resulted in overall moderate growth levels in global output. Regardless, passenger traffic "remained resilient in the face of the global uncertainties that beleaguered many of these economies over several years." Key highlights and observations from the report include:
- Airport revenues experienced strong growth in 2014 compared to the previous year. Although there were regional variations in financial performance, the recovery in the Euro area and the US, combined with the continued buoyancy of aviation in emerging markets, translated into gains in airport revenues;
- Airport industry revenues grew 8.2% year-on-year to USD142 billion in 2014;
- Many airports across the globe have moved towards a business model that charges the travelling end user for their services through passenger-based revenue schemes. On the aeronautical side of the business, over 55% of every dollar was generated from passenger-related charges as compared to other aeronautical sources of income such as aircraft-related revenues;
- Revenues from commercial and non-operating activities account for 45% of the all revenue streams, up 7.2% in 2014;
- While European airports hold the highest proportion of commercial and non-operating revenues relative to other regions. Much of the revenue growth in these areas is originating from airports located in the emerging markets of Asia-Pacific, the Middle East and Latin America-Caribbean, where the highest growth in commercial revenues in being posted;
- The airport revenue model is becoming "increasingly diversified and sophisticated," according to ACI World DG Angela Gittens. Airport operators have "moved beyond being mere infrastructure providers for aeronautical activities to varied and far-reaching enterprises". Commercial or non-aeronautical sources of income such as retail concessions and car parking contribute to the diversification in an airport's income portfolio and provide an additional cushion during adverse economic times;
- International tourism "was irrepressible in 2014 and 2015" and the international traveller appears to have largely discounted geopolitical and health risks that emerged in particular regions. [more - original PR]