Impact of COVID 19 on Airline Industry: Airport Revenues to Slash by Half, States Airport Council International
The world health organization have declared COVID as global pandemic, on March 16th, 2020. The pandemic further grown exponentially in Europe and North America region. The COVID-19 has compelled all the airport authorities to have temporary suspension on the air travel, that has affected the overall economic activities in the commercial aviation industry in the year 2020. Thus the air traffic in the region got suspended, and cause heavy losses to airlines and airport companies. The commercial aviation was witnessing an exponential growth from the past few years, supported by a rise in the air travel and growth in the airport infrastructure. The global pandemic effects the booming aviation sector into uncertainty related to airlines and airports operations, and thus it has pushed the commercial aviation sector in the massive outbreak.
The impact of COVID 19 on the airport industry is estimated to be around 50% of the total revenue forecasted in the year 2020. The airport services market, air traffic management market, remote towers market, and airport information system Market is likely to get affected due to the pandemic impact on supply chain network of the aviation industry.
The ACI have estimated that almost two-fifth of the global air passenger traffic i.e. around 3.6 billion passengers to be reduced due to the COVID 19 affect. This, aa a result, will negatively impact the airport ground handling equipment and services market, baggage handling services market and passenger security market.
The airport industry was estimated to earn around USD 172 billion in the year 2020, but the pandemic result in a revenue loss of USD 76 billion to the industry . Most of the Airports based in Europe, North America and Asia Pacific region have their long term project on expansion of their passenger capacity and upgrading of ageing communication & network systems. These projects are likely to get hold due to global pandemic. The long term investment in the market such as Smart Airport and 5G in Aviation is likely to get affected due to the coronavirus pandemic impact.
The airports are taking tough decisions and cost cutting majors, which is likely to affect the ongoing infrastructure project. As per the ACI Europe, it is estimated that Airports in the Europe would be facing losses of around more than 800 million passengers, almost (35%) decrease in the year, which was estimated to be 2.5% in a standard scenario. Thus, the airport systems and airport connectivity solutions are likely to fall in the year 2020 due to the deep impact of COVID 19.
