ACI Europe Says Ultra-Low-Cost Carriers Are Responsible for “Massive Losses” That EU Airports Expect to Face in 2022

European airports are expected to experience another year of revenue losses, which, according to Airports Council International (ACI) president for Europe, Olivier Jankovic, are caused by the dominance of low-cost airlines and accumulated debt.

Based on total revenue from airports during the first half of 2021, which shows a decline of -65 per cent compared to pre-pandemic levels and also on aviation business revenue which is down 121 per cent compared to 2019, European. Airports are expected to experience heavy losses again this year.

According to Jankovic, European airport debt has also increased by 200 percent, and a recovery in revenue is not going to happen anytime soon, TheSchengen.com reports.

“The rise and dominance of low-cost carriers – led by Ryanair and Wizzair – along with shrinking and more flexible network carriers, more hybridization and the inevitability of airline consolidation will only mean one thing: unprecedented competitive pressures on European airports,” Yankovic said. : “This fact is in the making and make no mistake, it will affect everyone – from our mega hubs all the way to our smaller regional airports.”

He also noted that the airports are dealing with an investment crisis that makes it impossible for them to deal with financing decarbonization, digitization and reaching the required capacity.

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According to an analysis previously published by ACI, airport revenues will not recover to cover investment costs until passenger traffic is fully restored, which is unlikely to happen until 2023.

The comments were made during the annual conference, which has been brought together to discuss the future of 500 memberships at airports in 55 countries.

In conclusion, the ACI recommends that airports adopt a future-proof business model, which focuses on transformation, de-risking and resilience, which are currently highly interconnected.

Moreover, in order to honor the commitment to zero carbon emissions, EU airports are required to follow a scheme that preserves revenue in aviation and access to financial markets, both of which depend on the airport’s ability to upgrade to efficient and digital operations.

At the summit in May this year, ACI pledged to reach the goal of reducing carbon emissions by 2030, and so far, out of 780 airports, only the following 10 have shown progress:

Nice Côte d’Azur Airport (three airports including Nice) Rome Airport Amsterdam Airport Schiphol Avinor Airport (44 airports including Oslo) Copenhagen Airport Eindhoven European Airport Basel-Mulhouse-Freiburg Vinavia Airport (21 airports including Helsinki) Luxembourg Airport Lyon-Saint-Exupéry

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Source: schengenvisainfo.com

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