Airports Council International Asia-Pacific warns the prolonged duration of the COVID-19 outbreak will significantly set back the region’s airports from previously forecasted growth prospects.
In a statement release yesterday, the airport association urged regulators and governments to implement well-defined adjustments and relief measures tailored to suit local level contexts.
Responding to the statement, Fiji Airports CEO Faiz Khan says almost all costs at the airports are fixed.
Khan says Fiji Airports is facing a major financial disaster and every dollar lost in revenue is lost from the bottom line and cash flow.
In the meantime fixed costs and existing commitments cannot be reduced.
Capital infrastructure projects planned in the future will be deferred but those already under contractual engagements have to go ahead.
Khan adds the situation of the airports wil be highly challenging, along with the entire aviation and tourism industry.
Meanwhile, Airports Council International (ACI) Asia-Pacific warns the prolonged duration of the COVID-19 outbreak will significantly set back the region’s airports from previously forecasted growth prospects.
The airport association urges regulators and governments to implement well-defined adjustments and relief measures tailored to suit local level contexts.
According to ACI World estimates, Asia-Pacific is suffering the highest impact, with passenger traffic volumes down -24% for the first quarter of 2020, compared to forecasted traffic levels without COVID-19. Within the Asia-Pacific region, mainland China, Hong Kong SAR and the Republic of Korea remain at the center of the effects with sizable losses in traffic volumes.
There is a sharp spike in the number of COVID-19 cases in several countries in the Middle East, expecting to significantly impact traffic downwards by -4.2%, as travellers and airlines adjust their plans and seat offers in the coming days and weeks.
Against this gloomy background of sharp declines in traffic and passenger throughput, airports’ aeronautical revenues and non-aeronautical revenues are rendering similar declines.
The ACI World Airport Traffic Forecasts 2019–2040 predicts US$12.4 billion revenue for the first quarter in the Asia-Pacific region in the “business as usual” scenario.
The impact of COVID-19 is projected to have a revenue loss of US$3 billion.