ACI World reveals capital expenditure needs for recovery and long term growth
New Airports Council International (ACI) World forecasts for the global airport sector show that approximately .4 trillion (figures in US Dollars) in airport total capital investments will be needed to address the long-term trend in passenger demand to 2040.
The Global Outlook of Airport Capital Expenditure – Meeting Sustainable Development Goals and Future Air Travel Demand, published today, shows that significant investment in new greenfield airports, as well as significant investment to expand and maintain existing airport infrastructure, is required. The study was supported by Hamad International Airport and developed in collaboration with Oxford Economics.
The estimated decline in capital expenditure between the pre-C19 baseline year of 2019 and the depth of the global C19 lockdown (2020) is 33% or about billion.
While capital investment partial recovery to about 14% (approximately billion) below 2019 baseline is expected in 2021, ACI World believes that as air transport demand recovers to pre-pandemic levels, passenger demand will put increased pressure on airports’ infrastructure and failure to invest to address capacity needs will have real socio-economic consequences.
If longer term capacity constraints are not addressed through capital investment, ACI World estimates that a reduction of up to 5.1 billion passengers globally by 2040. For every million passengers airports cannot accommodate due to airport capacity constraints in 2040, 10,500 fewer jobs and 6 million less in Gross Domestic Product would be the result.