Europe’s airports are facing an unprecedented financial crisis due to the outbreak of the coronavirus on the continent.
The Airports Council International, the global trade representative of the world’s airport authorities, said European airports are facing a ‘full blown crisis’ and have called on governments to only issue travel bans as a last resort.
‘For now, airports in Italy are clearly the most affected,’ said Olivier Jankovec, Director General of ACI Europe.
Jankovec added that before Italy’s decision to quarantine the country yesterday, Italian airports had already seen a 60 per cent reduction in passenger traffic due to a ‘loss of confidence, changes to corporate travel policies, and governmental measures’.
Beyond Italy, airlines are ‘drastically cutting capacity and cancelling air services’ as a response to weakening demand, the authority said.
People wait to board a plane at a departure gate at Leonardo da Vinci International Airport in Rome on Sunday. Flights are still leaving Rome for Australia on Tuesday despite Italy being placed into lockdown because of the coronavirus
A plane passenger wearing a face mask arrives at Gatwick airport on Monday as the coronavirus outbreaks continues to spread around the world
Passengers in Malpensa airport, near Milan, waiting for their flight after British Airways said it is still flying passengers to and from Italy
‘But what they [European airports] are now bracing for is a total collapse in air connectivity and the prospect of losing most of their revenues,’ he said.
Citing World Health Organization recommendations, the ACI are asking that governments only consider travel bans and measures interfering with air connectivity as a last resort and to reopen airports as quickly as possible.
The extent of airline disruption due to the coronavirus was initially confined to services flying into Asia. ACI are concerned that as the virus spreads, so to will the damage to the industry.
While the absolute priority for airports is the protection of passengers and staff, this situation presents a unique set of operational and financial challenges, the authority said.
They added that airports need to be kept fully operational and air connectivity must be maintained in times of health crises.
A medical official with protective gear walks inside a plane while taking the body temperature of passengers, who arrived on a flight from New York City, as a preventive measure against the coronavirus (COVID-19) at the Boryspil International Airport outside Kiev, Ukraine today
Passengers wearing protective face masks are seen in Malpensa airport near Milan, Italy
An officer uses a thermal scanner in I Gusti Ngurah Rai International airport after Indonesia confirmed new cases of coronavirus disease (COVID-19) in Denpasar, Bali, Indonesia, today in this photo taken by Antara Foto
To face the crisis, a collaborative approach between airports, airlines and Governments and the EU is of paramount importance both now and as the situation develops, the ACI said.
ACI’s global outlook predicts the economic impact of the outbreak on the worldwide airport industry will be pronounced, with estimates of a 12 per cent reduction in passenger traffic.
An ACI World statement said: ‘Asia-Pacific is the most impacted region with passenger traffic volumes down 24 percentage points as compared to previous business as usual forecasts for the first quarter of 2020.
‘Europe and the Middle East are also expected to be significantly impacted by reductions in traffic.
‘North America is expected to see similar declines in the second quarter of 2020 with recent service reductions just announced last week in North America and with more expected in the coming weeks.’
This translates to a loss of around £2.2billion for airports around the world.
This is roughly equal to the total annual revenues of two major European or Asian hubs combined. Europe is the second most-impacted region, while all other regions will see the impact of the loss of passengers as more data becomes available.
A Cathay Pacific staff member wearing a facemask as a preventative measure against the COVID-19 coronavirus stands next to a row of self-check in terminals at Hong Kong’s Chek Lap Kok International Airport today
A passenger wearing a protective face mask, amid concerns about coronavirus, walks in Linate Airport in Milan
A video screen grab shows employees in protective suits at Terminal F, obliged to check passengers arriving from China, Italy, South Korea and Iran, ask them to fill in special forms and have their temperature measured upon arrival at Sheremetyevo International Airport, Russia today
‘The airport industry recognizes that all stakeholders of the aviation ecosystem are heavily impacted by the COVID-19 outbreak, and that strengthened cooperation between airports, airlines, and regulatory authorities is needed as the industry responds to the outbreak,’ ACI World Director General Angela Gittens said.
‘The sudden shock represented by the COVID-19 outbreak is affecting passenger and cargo traffic worldwide, markedly in Asia-Pacific and significantly reducing airport revenues.
‘Airports rely heavily on airport charges to fund their operating and capital costs and operators find themselves under intense pressure during periods of traffic decline.
‘Airport revenues must be sufficiently protected to ensure safe and sustainable operations.
‘Measures to limit the collection of airport charges would be ill-advised.
‘ACI World and all ACI Regions are also urging a proportionate slot allocation response to COVID-19 that will preserve global airport connectivity and favours a market-by-market review which is evidence based when it comes to assessing slot usage requirements.
‘An evidence-based review would examine infection rates, load factors, forward booking forecasts, and the impact on the environment of continuing certain services.’