The head of Europe’s airports trade body has issued a ‘user pays’ warning on charges amid an ongoing post-pandemic cost crunch.
Europe’s airports nudged back into the black with a net profit of €6.4 billion last year after more than €20 billion in accumulated losses since 2019, latest figures show.
The performance was achieved despite passenger volumes still remaining 21% below pre-pandemic (2019) levels.
It was primarily driven by airports delivering cost efficiencies despite unprecedented inflationary pressures and significantly slashing investments, according to industry body ACI Europe.
But the financial situation of Europe’s airports remains “uncertain and challenging” due to a combination of structural cost increases and revenue pressures.
Debt and liabilities remain a “staggering” €47 billion above pre-pandemic levels, as airports saw much less state largesse than airlines during Covid and had no option other than to pile on debt, the trade group said.
The airport business model is being transformed by the post-Covid reality of the European aviation market characterised by “relentless yet selective expansion” from ultra-low cost Carriers along with the relative retrenchment and consolidation of full service carriers.
There is also the decarbonisation imperative, “inextricably linked to the industry’s licence to keep operating”.
Director General, Olivier Jankovec warned that overall the current dynamic is therefore not sustainable, also pointing to investors now also erring on the side of caution as the industry regroups and remodels.
He said: “What is at stake here is airports’ ability to invest in their decarbonisation, resilience, digitalisation and capacity where needed.
“Looking at 2023 and the next two years, Europe’s airports already cut planned investments from €34.6 billion to €18.4 billion. The investment crunch is not for tomorrow – it is already a reality.
“So there really is only one logical way forward, and that is adherence to the ‘user pays’ principle.
“Regulators and governments need to accept the fact that cost pressures and investment needs require an upward adjustment of airport charges.”