The COVID-19 pandemic has impacted every aspect of our daily lives – it certainly hit the air travel industry hard. Airports rightfully took swift and early action to help ensure the health and safety of the traveling public and our employees and to prevent the spread of COVID-19. Now following significant travel restrictions and the devastating impact of the steep and sudden drop in travel, the airport industry must remain unified as we face uncharted territory together.
To effectively move past this crisis, we first must understand the extent of the problem. Based on preliminary assessments by Airports Council International-North America (ACI-NA), the COVID-19 outbreak will cost U.S. airports at least USD $23 billion, a significant setback from previously forecasted stable growth prospects. In Canada, we can expect to see losses of more than CAD $2.4 billion.
Transportation Security Administration (TSA) daily throughput numbers reflect more than 95 percent fewer passengers than this same period last year. We anticipate total U.S. passenger enplanements will fall by 259 million in the first half of the year and 417 million for the full year. Canada can expect the same losses with total passengers anticipated to decrease by 38-42 million in the first half of 2020 and 58-74 million for the full year. Sadly, these are just early numbers, and we expect future projections to worsen as more data becomes available. These losses directly impact workers across the airport complex and will be felt deep into local communities.
Over the last several months, the ACI-NA team has worked around the clock to support our members as they deal with this ongoing crisis. One important result has been the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act – the U.S. economic stimulus package resulting from the pandemic. The CARES Act included $10 billion for airports that will help offset our significant financial losses. We are grateful for Congress and the administration for these critical resources. ACI-NA worked closely with our member airports to ensure that much-needed financial aid was in the final bill.
But as airport losses continue to escalate with sustained travel restrictions, we will continue working with policymakers in Washington to ensure America’s airports have what they need to operate and stay above water. Airports are critical economic engines and job creators in communities across North America, while at the same time providing an irreplaceable service to the public. That is why we must ensure airports are properly recognized in any future stimulus packages.
In Canada, our team successfully worked with Minister of Transport Marc Garneau and the Government of Canada to secure a 10-month waiver of airport rent paid to the federal government by 21 privately operated National Airports System airports, and similar relief for Billy Bishop Toronto City Airport, in response to the ongoing coronavirus (COVID-19) health pandemic.
However, given that the biggest challenge facing all of Canada’s airports is the dramatic loss of revenue they have experienced, we continue to call for financial relief to ensure the business continuity of Canada’s airports. This is needed to address the ongoing concerns of Canadian airports.
One of the other things we are actively grappling with is how the industry will take shape in the coming months and years. We are asking ourselves questions like ‘What will air service look like for the rest of the year?’; ‘How will airports pay for ongoing infrastructure projects?’; and of course, ‘How will airports sustain the cost of increased sanitation requirements that will come in the post-COVID era?’. While we don’t have all the answers today, these are issues that the industry will be focused on in the coming days, weeks, and months.
It is in moments like this when the value of an association is made very clear. ACI-NA is helping to facilitate these important conversations about the future of the industry in close partnership with all of the regions of Airports Council International, because our business is truly a global operation. There is so much we can all learn from each other as we prepare for travel to resume.
The challenges COVID-19 has inflicted on our industry are significant, but I remain confident that if we stay unified, we can weather this storm. ACI-NA will continue to work hand-in-hand with our members across North America, as well as policymakers in Washington and Ottawa, on the best solutions to support our members as they deal with this unprecedented environment. The challenges brought on by COVID require a whole of industry response, and airports will continue to work hard to do our part.
Kevin Burke is President and CEO, Airports Council International-North America. ACI-NA.
