Airport revenues grow 6% in 2017

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Airports Council International (ACI) World has published its annual Airport Key Performance Indicators (KPIs) which reflect developments in air transportation demand.

Based on comprehensive data from the 2017 financial year, analyses of the KPIs reveal global airport revenues grew 6.2% to reach US$172.2bn. This comprises aeronautical revenue at 55.8%; non-aeronautical revenue at 39.9%; and non-operating revenue at 4.3%.

At a global level, total cost to the airport per passenger was found to be US$13.69, which significantly exceeded global aeronautical revenues per passenger (US$9.95).

This illustrates the importance of non-aeronautical revenues – currently standing at US$7.08 per passenger – for airports’ financial sustainability.

ACI World has stated that, beyond physical capacity constraints, disproportionate regulatory regimes that hinder flexibility in setting the right level of charges represent an additional impediment to airport development and investment in infrastructure.

Industry return on invested capital (ROIC) stands at 7.4%. Approximately 80% of airports in the world are small, handling fewer than a million passengers per annum, and 94% of these airports are loss-making.

Angela Gittens, ACI World director general, said, “Although the airport industry is profitable on the aggregate level, two thirds of airports are in the red with 94% of all loss-making airports handling traffic volumes below one million passengers per annum.

“Thus, developing the necessary strategy to enhance traffic growth is fundamental in generating a positive economic return.”

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Dan joined Passenger Terminal World in 2014 having spent the early years of his career in the recruitment industry. As assistant editor, he now produces daily content for the website and supports the editors with the publication of each exciting new issue. When he’s not reporting on the latest aviation news, Dan can be found apprehensively planning his next DIY project.

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