Europe’s airports face a second year of “massive losses” and “unprecedented pressures” from “the dominance of ultra-low cost carriers”, the head of European airports association ACI Europe has warned.
ACI Europe director general Olivier Jankovic reported European airport debt “has ballooned” and warned a recovery in earnings “is a long way off”.
He said: “This is not just about the slow recovery in traffic volumes, but about increasing pressure from airlines on airport charges.
Jankovic described the financial support available as “limited” and “cost cutting opportunities almost exhausted”.
He told the association’s conference: “Europe’s airports face an investment crunch which will hit their ability to finance decarbonisation and digitalisation as well as capacity.
Airport revenues will remain insufficient to meet investment costs at least until 2032.”
Jankovic said: “The rise and dominance of ultra-low cost carriers led by Ryanair and Wizz Air, combined with . . . the inevitability of airline consolidation will mean unprecedented competitive pressures on Europe’s airports.
He warned of “an uneven and volatile recovery” as well as “significant supply pressures, rising fuel costs and inflationary pressures”.