With comprehensive data coverage from a sample of over 800 commercial airports, in-depth analyses of air transport demand, airport revenues and costs, Airports Council International (ACI) has released the 20th edition of the Airport Economics Report and Key Performance Indicators for the financial year 2014.
The report finds out two forces at play in the global economy.
As advanced economies get back on course, the emerging market slowdown has resulted in overall moderate growth levels in global output. Regardless, passenger traffic remained resilient in the face of the global uncertainties that beleaguered many of these economies over several years. International tourism, in particular, was irrepressible in 2014 and 2015, even considering the geopolitical risks that persisted in certain parts of the world, such as Eastern Europe and the Middle East. The Ebola outbreak also presented significant challenges to the aviation sector. Notwithstanding, by and large, the international traveler appears to have discounted these risks.
Based on the 2014 financial year, airport revenues experienced strong growth compared to the previous year. Although there were regional variations in financial performance, the recovery in the Euro area and the United States, combined with the continued buoyancy of aviation in emerging markets, translated into gains in airport revenues. Industry revenues as a whole grew by 8.2% from 2013, reaching over US$142 billion in 2014. Many airports across the globe have moved towards a business model that charges the travelling end user for their services through passenger-based revenue schemes. On the aeronautical side of the business, over 55% of every dollar was generated from passenger-related charges as compared to other aeronautical sources of income such as aircraft-related revenues.
Angela Gittens, Director General of ACI World said, "The combined revenues from commercial and non-operating activities account for 45% of the all revenue streams and grew by 7.2% in 2014," she continued. "While European airports hold the highest proportion of these revenues relative to other regions, much of the revenue growth is originating from airports located in the emerging markets of Asia-Pacific, the Middle East and Latin America-Caribbean, where the highest growth in commercial revenues in being posted.”
Key industry facts for the 2014 financial year:
- Global industry revenue year-over-year growth (2014/2013): 8.2%
- Global industry revenue: US$142.5 billion
- Revenue per passenger year-over-year growth (2014/2013): 3.2%
- Distribution of global revenues: aeronautical (55.5%), non-aeronautical (40.4%) and non-operating (4.1%)
- Global airport revenue per passenger: US$21.22
- Global aeronautical revenue per passenger: US$11.78
- Global non-aeronautical revenue per passenger: US$8.58
- Total cost per passenger: US$16.82
- Ratio of aircraft-related charges (33.6%) to passenger-related charges (55.8%) and other aeronautical revenues (terminal rentals) (10.6%): 34:66
- Distribution of non-aeronautical revenue by key source: retail concessions (28%), car parking (22%) and property and real estate income or rent (15%)
- Labour cost share of operating expenses: 36%
- Global debt-to-EBITDA ratio: 5.03
- Industry net profit margin: 16%
- Global return on invested capital (ROIC): 6.3%
