European airports call for urgent support measures with “near total collapse of traffic” expected

Jost Lammers: “Cash flow problems risk becoming systemic for Europe’s airports and raise issues of business continuity”

EUROPE. Airports Council International (ACI) Europe President Jost Lammers has urgently called on the European Commission, EU/EEA States and Switzerland to adopt measures to support European airports in the wake of a likely “near total collapse of traffic, connectivity and revenues”.

A letter written on behalf of the European airport industry ahead of an extraordinary meeting of EU transport ministers scheduled for tomorrow (18 March) seeks the following:

i) Safeguarding airports’ operational and business continuity over the coming weeks and months by providing extraordinary and urgent funding and cash flow resources where needed – not least to ensure those air services deemed essential under the current circumstances. This funding needs to be available under similar conditions as those that will be considered for airlines.

ii) Preserving airports’ economic and financial resilience so as to allow airports to return to normal operations as soon as possible and support the recovery of the wider economy. Airports act as engines of local and regional economic growth and employment. Many of them are indeed the largest employment site in their region and/or country. This means that their own standing and capabilities directly support that of their communities. In this regard, it is essential for them to preserve their long-term strategic investment – including those relating to decarbonisation efforts.

Preliminary figures from ACI Europe show that passenger traffic at EU/EEA/Swiss and UK airports decreased on average by -54% last week (9-15 March), down from -24% the preceding week (16-22 March). These airports will collectively lose over 100 million passengers in the first quarter compared to a business as usual scenario, the organisation estimates.

Europe’s airports are expected to lose €2 billion in revenue in the first quarter “before even factoring in the ban on entry into the Schengen area”, with losses set to deepen in the coming months.

“The situation keeps worsening,” wrote Lammers. “As more countries both in the EU and beyond are adopting travel and flight bans, the proposal for a ban on entry into the Schengen area and with most European countries likely to go into lockdowns similar to Italy, airlines are further accelerating drastic capacity cuts and route cancellations to limit their financial exposure. Some are even shutting down all operations.

“This means that Europe’s airports are now bracing for a near total collapse of their traffic, connectivity and revenues. Indeed, the dramatic state of Italian airports gives an indication of what lies ahead for airports across the continent. Over the past days, passenger traffic at Italian airports went into a free-fall, decreasing by more than -90%.

“For airports, falling passenger traffic immediately translates into lost aeronautical and non-aeronautical revenues which they rely upon to operate, maintain and develop their facilities.

“All European airports are currently rushing through extensive cost containment measures including unpaid leave for staff, temporary layoffs, corporate travel restrictions, ending consultancy and external contracts, closure of terminals where technically possible, reduction and suspension of investments.”

Lammers concluded: “The unprecedented shock to their traffic and revenues means that several airports are facing cash flow issues – and that an increasing number of them will face such issues in the coming weeks if the situation continues.

“These cash flow problems risk becoming systemic for Europe’s airports and raise issues of business continuity, which must be addressed by the EU.”

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