ACI EUROPE releases landmark report on the future viability of the airport industry

ACI EUROPE has released a landmark report on the future viability of Europe’s airport industry, based on research conducted by Boston Consulting Group (BCG). Titled Decoupling Financial Viability from Volume Growth: Charting the Way Forward for Europe’s Airports, the report warns that Europe’s airports’ financial viability and investment capacity can no longer rely on the assumption of dynamic traffic growth.

However, it warns that airports’ financial viability is under severe strain from structural changes in aviation market and its economics, creating downward pressure on revenues and rising costs. BCG identifies an urgent need for corrective action, with future value creation relying on higher unit revenues rather than traffic growth. 

Speaking on the report, Stefan Schulte, President of ACI EUROPE and CEO of Fraport said: “Our report and the BCG research make it clear that airports are entering a structurally different and far more challenging long-term cycle. Europe’s airports financial viability and investment capacity can no longer rely on the assumption of dynamic traffic growth. Going forward, value creation will have to come from growing our unit revenues – both from airport charges and the non–aeronautical activities – along with continued efficiency gains.” 

“This is a fact some of national regulators in Europe need to wake up to. At the same time, this requires continued stability and predictability when it comes to EU rules on airport charges. Let me be clear towards the European Commission: the last thing we need is to open this pandora box and scare away investors”.

Find out more and download the new report in ACI EUROPE’s Press Release here.