ACI World: Airports increased debt in 2021 as costs outweighed revenue

ACI World published (22-Mar-2023) its 2023 Airport Economics Report and Key Performance Indicators, providing a view of the airport industry's financial performance for 2021 based on data from over 1000 airports. Highlights include:

• In 2021, the airport industry experienced the continued financial impact from the COVID-19 pandemic;
• Due to the capital intensive nature of the airport business with many fixed costs, the average cost per passenger far exceeded average revenue;
• Facing substantial financial pressures and the ongoing need for infrastructure investments, airports increased their levels of debt during 2021 to finance operations;
• The industry's debt-to-EBITDA ratio was 13:1, in contrast to the pre-pandemic average of around 5:1;
• Aeronautical revenue was the largest source of income for airports, representing 50% of the total;
• Airports are exploring new sources of non-aeronautical revenue, such as real estate development, to mitigate traffic risk and adapt to changing market conditions.

ACI World director general Luis Felipe de Oliveira stated: "Beyond the impact of the pandemic, airports need the support of governments through better global policy frameworks on airport charges". Mr de Oliveira noted: "In a changed competitive landscape, light handed models of economic oversight need greater consideration in global policy frameworks on airport charges". He added: "Airports must be given greater freedom to operate as businesses in their own right". [more - original PR]