A new report looking at the road to recovery for airports in the UK says that increased travel restrictions introduced in 2021 mean ‘a full traffic recovery by 2025 is an ever-more unlikely prospect’.
The Airport Operators Association (AOA) has published an Airport Recovery Plan as a pathway towards a restart for the aviation sector in the UK.
Business consultancy Steer produced a report for the AOA to guide the plan and, based on its analysis before the pandemic worsened, Steer estimated that passenger numbers would not return to 2019 levels any earlier than 2025 in the most optimistic scenario. The AOA says that restrictions introduced since the new year mean this now looks optimistic.
Commenting on the launch of the plan, AOA’s chief executive Karen Dee said: “2020 was a devastating year and the start of 2021 has so far dashed airports’ hopes that this year will be significantly better. This summer must be a success for aviation if airports are to survive in the coming years.”
“A comprehensive aviation recovery package is needed to see airports through the immediate government-ordered shut-down of aviation. This must include targeted financial support as well as a clear pathway to re-start across the four UK nations by easing travel restrictions when it is safe to do so, including through testing.
“The UK and devolved governments should then set out measures to boost airports’ chances to make a success of the recovery. We will be competing fiercely with other countries for the return of airlines and routes. We cannot afford the UK to lag behind our global competitors.
“If government fails to step up to the plate, the impacts are clear: people and businesses who depend on aviation for their own success will carry the heaviest burden, particularly outside London and the South East of England.”
The Steer report found that airports have had to increase debt levels and seek concessions from lenders to provide liquidity to manage the crisis. “Airports now carry high levels of debt and are high fixed-cost businesses, with some of the highest fixed costs being government related charges – e.g. business rates, policing and regulatory costs. With no revenue, this is resulting in significant losses,” it said.
The AOA added: “The routes that will recover first are short-haul, high-yield routes to popular travel destinations while routes important to business, such as long-haul routes, will see a much slower recovery. This will mean fewer jobs and economic opportunities.”