Airports Council International North America (ACI-NA) President and CEO Kevin Burke and directors of nine major U.S. airports met with White House officials to discuss measures already underway to protect travelers and airport employees from the spread of COVID-19, as well as the need to address the economic impact from the sharp drop in air travel.
“North American airports responded swiftly to contain the spread of COVID-19 and continue to take aggressive steps to protect everyone traveling through their facilities,” Burke says. “However, the abrupt decline in air travel resulting from this outbreak will cost U.S. airports at least $3.7 billion this year, and possibly more as people continue to cancel their travel plans.”
This unexpected shortfall will strain airport operating budgets and potentially disrupt the funding of infrastructure projects already underway.
ACI-NA had initially estimated U.S. commercial airports would lose $3.7 billion in calendar year 2020, but that was before the European travel restrictions were announced Wednesday by the White House.
Among the revenue declines will be the collection of Passenger Facility Charges (PFCs), an important funding source for airport infrastructure, which are expected to fall by nearly $500 million this year.
This comes as a time when the airports face a surge in operating expenses due to increases in custodial costs, extra shifts and staffing, additional hand sanitizers in airport public areas for passengers and employees, and additional education and training for airport employees and contractors.
U.S. Travel Association President and CEO Roger Dow called on federal officials to help protect workers in the travel industry from the impact of the European travel restrictions on top of the dramatic decline in travel due to the coronavirus.
“The public’s health is the top concern, but now the policy conversation must address the health of the economy,” Dow says in a statement. “Temporarily shutting off travel from Europe is going to exacerbate the already-heavy impact of coronavirus on the travel industry and the 15.7 million Americans whose jobs depend on travel. We have and will continue to engage Congress and the administration on policy steps that are necessary to ensure that travel employers—83 percent of which are small businesses—can keep the lights on for their employees.”
