ACI North America
Speaker Pelosi is preparing an updated $2.4 trillion COVID-19 relief package, which will include aid for the airline industry.
The first round of $10 billion in CARES Act funding has helped airports survive this unprecedented event, but we expect to face considerable challenges on the months and years ahead.
- More and more airports are running out of CARES Act funding.
- The airport industry has come together in support of a $13 billion request to provide additional direct aid to airports.
- We also back a separate $3.5 billion request to help airport concessionaires continue to weather the storm.
- ACI-NA President and CEO Kevin M. Burke penned a piece in Morning Consult today on the urgent need for additional airport aid.
The HEALS Act, which Senate Republicans unveiled in August, included $10 billion in additional assistance for airports. This was a great start – and we hope at least that amount will be included in the new House bill.
Getting more federal funds out the door and into local communities as quickly as possible will ensure airports can continue to respond to new operational demands, pay for debt service on their bonds, help keep their critical safety and security projects on track, and keep airport staff employed.
Like the airlines, the economic shutdowns that started in mid-March triggered an immediate drop in passengers at airports nationwide.
- We faced a 95 percent decrease in passengers for nearly two months.
- And we are struggling now with a 65-70 percent decrease over last year’s levels.
- The airlines are reducing schedules through the fall and winter because bookings are down and most international border restrictions remain in place.
- Passenger surveys are showing recovery won’t take off until there is a vaccine, so we expect this to have a long-term impact on the aviation industry.
With a significant drop in passengers, airport revenue continues to struggle.
- ACI-NA, estimates airport revenue losses of $23 billion from March 2020-March 2021.
- Meanwhile, airports are facing new operating demands and increasing strains on their outstanding debt.
- Airports and airlines are making major investments in public health improvements, such as cleaning, sanitization, plexiglass barriers, physical distancing measures, airflow improvements, and health screenings in some places.
- These added costs, plus reduced revenue, has created budget nightmares for airports.
- We are slashing budgets, putting capital projects on hold, and seeking additional emergency relief from Congress.
