ACI economic analysis shows COVID-19 is an existential threat to aviation

Economic analysis conducted and published by ACI World has found that on a global level the COVID-19 outbreak is estimated to eradicate two-fifths (38.1%) of passenger traffic – equivalent to 3.6b passengers in absolute terms – and almost half of revenues for airports in 2020 as compared to the forecasted pre-pandemic figure. The shortfall in the number of passengers and the cancellation of flights as a result of travel restrictions, border closures and country-wide lockdowns to mitigate the spread of COVID-19 will continue to result in reduced revenues. While the industry was expected to generate about $172b in 2020, it is now predicted it could lose approximately 45% (more than $76b) by the end of 2020. Angela Gittens, ACI World Director General, said: “A drastic decline of such magnitude for the global airport industry represents an existential threat. A swift, effective and equitable economic policy response from governments is needed to protect millions of jobs, protect essential operations and give the industry the greatest chance to weather the storm and recover quickly. The global airport industry has faced multi-billion-dollar losses already in the first quarter of 2020, but it is now predicted that the impact of COVID-19 will extend not only to the second quarter of 2020, but also the second half of the year.”<br/>