Airport 'key performance indicators' reveal financial performance amid capacity challenges
LONDON, United Kingdom – At the 11th Annual Airport Economics & Finance Conference & Exhibition in London, Airports Council International (ACI) World has published its annual Airport Key Performance Indicators (KPIs) which reflect developments in air transport demand. Based on comprehensive data from the 2017 financial year, analyses of the KPIs reveal global airport revenues grew 6.2%, lagging the 7.5% growth in passenger traffic, to reach $172.2 billion.
This revenue is comprised of:
- Aeronautical revenue: 55.8%
- Non-aeronautical revenue: 39.9%
- Non-operating revenue: 4.3%.
At a global level, total cost to the airport per passenger was found to be $13.69 (all figures are U.S. dollar) which exceeded significantly global aeronautical revenues per passenger ($9.95). This illustrates the importance of non-aeronautical revenues – currently standing at $7.08 per passenger – for airports’ financial sustainability.
Industry return on invested capital (ROIC) stands at 7.4%. Eighty per cent of airports in the world are small – handling fewer than a million passengers per year and 94% of these airports are loss-making.
“Global passenger traffic has reached record levels as airports continued to make a crucial contribution to furthering economic development and global connectivity,” ACI World Director General Angela Gittens said.
“While strong competitive forces continue to drive innovation and improvements in efficiency and service for passengers, airports face the challenges of meeting the continuing global growth in demand for air services. The airport capacity crunch is no longer a figure of speech. The question of financing new infrastructure is becoming the most fundamental one for the industry."
For more information about the KPI report, please read ACI's full news release.
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