Europe’s airports are facing a “polycrisis” situation as they work to decarbonise amidst geopolitical and macroeconomic risks while recovering from the COVID-19 pandemic.
Speaking at the Routes 2023 conference in Istanbul ACI Europe Director General Olivier Jankovec stated that overall recovery is progressing well, with a 6pc decrease year-to-date. ACI Europe expects a full recovery by 2024 instead of their previous forecast of 2025.
Performance varies by market. Germany’s underperformance is due to its smaller presence of low-cost carriers (LCCs), whereas the war in Ukraine is impacting Finnish airports but benefiting some airports outside Europe. Regional European airports are performing well due to leisure travel and VFR (visiting friends and relatives).
Consumer confidence has remained strong, despite inflation and increased air fares, but risks lie ahead. These include the cost-of-living crisis, a potential eurozone recession, airline capacity constraints due to a shortage of spare parts and new aircraft, and the need for the airport industry to prioritize investments while managing significant debt.
ACI Europe is particularly concerned about governments imposing operational limitations tied to decarbonisation—the industry’s top challenge. The decision by the Dutch government to reduce capacity at Amsterdam Schiphol Airport is seen as a worrisome precedent.
External shocks pose a real risk, as demonstrated in the last 10 days. “The question everybody is asking at the moment is, ‘When will the demand party end?’ We hope it will last it a little more.”
