REPORT THE AVIATION INDUSTRY Tourism is a big part of the aviation industry's revenue. While the travel policies restrict tourism, the impact is massive on this industry. The lifeblood of the airport industry is
flexibility in operational expenses and
aviation traffic. Aeronautical and
primarily fixed capital costs.
non-aeronautical services account for more than 95 percent of the
The COVID-19 crisis, according to the Air
revenue generated by airports.
Transport Action Group (ATAG), a global association that represents all sectors of
Passenger-related charges from
the aviation industry, will result in the loss
passengers and aircraft-related costs
of 46 million aviation-supported jobs
from aircraft operators account for
(-52.5 percent) and a reduction of $1.8
nearly all aeronautical income, which
trillion USD in aviation-supported
are a direct function of traffic.
economic activity (-51.5 percent) by September 2020. (Aviation: Benefits
As traffic falls, the capacity of
Beyond Borders, ATAG 2020).
airports to collect these fees decreases accordingly. The current
Although preliminary evidence suggests
crisis provides an unprecedented
that unit revenues may increase or
challenge for the airport industry's
decrease based on a mix of airport-
financial survival, with minimal
specific factors, the current study assumes constant airport revenues on a per-passenger basis.
A higher share of passenger-related activities, such as retail or food and beverage concessions, leads to a steeper fall in commercial revenues, while a higher reliance on real estate income and rentals acts as a cushion in times of crisis.
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Airport Council International. "The impact of COVID-19 on the airport business and the path to recovery." Airport Council International, 25 Mar. 2021, aci.aero/2021/03/25/the-impact-of-covid-19-on-the-airport-business-and-thepath-to-recovery/. Accessed 31 Oct. 2021.
