Airports worldwide are facing persistent financial challenges despite a near-full recovery in passenger traffic, according to the latest ACI World Airport Economics Report released today.

While global passenger numbers in 2023 were just 5.4% below pre-pandemic levels, total airport revenues lagged significantly, down 11.4% from the $158.6 billion recorded in 2019.

The report, based on data from over 1,060 airports representing 82% of global pre-pandemic passenger traffic, highlights a robust 21.4% revenue increase from 2022, reaching $146bn in 2023.

However, this figure remains well below pre-pandemic benchmarks and reflects the uneven recovery of airport finances, according to the report.

ACI World Director General Justin Erbacci.

Aero- and non-aero revenues under pressure

Aeronautical revenues, the backbone of airport income, reached $79bn in 2023 but were 14% below 2019 levels, maintaining a steady 53.6% share of total revenues.

Non-aeronautical revenues, critical for financial sustainability, stood at $54bn, 17% below pre-pandemic figures, with their share slipping from 40.2% in 2019 to 36.7% in 2023.

Rising capital costs further compounded financial pressures, climbing 4% from 2022 to $40bn, driven by an 18% surge in interest expenses tied to airport debt.

While the debt-to-EBITDA ratio improved to 5.74:1 in 2023, it remains elevated compared to pre-pandemic levels, signalling ongoing debt management challenges.

The report warns that weakened airport finances threaten the infrastructure investments needed to meet soaring air travel demand, projected to hit 17.7 billion passengers by 2043 and 22.3 billion by 2053, nearly 2.4 times the 2024 volume.

ACI World estimates that $2.4tn in capital investment will be required by 2040 to support this growth and maintain aviation’s role in driving economic and social benefits, including job creation and regional connectivity.

ACI World Director General Justin Erbacci said: “The lag in airport revenue recovery, despite strong passenger traffic, highlights significant financial hurdles. With air travel demand set to surge, regulators must adopt flexible policies to support infrastructure investments, ensuring aviation’s sustainable growth and its vital economic contributions.”

Reporting by Bill Lumley