Impact of COVID-19 on the Global Network of Airports

Abstract

Airports have grown in number, size and function in the recent past, leading to vast economic spinoffs to many communities. They are critical global nodes that link the world and facilitate economic development. In 2020, the global aviation industry was brought to a near standstill by the COVID-19 pandemic, with devastating global economic and associated impacts. This study evaluated the impact of COVID-19 on the airports’ sector. Using archival and secondary data from authoritative sources such as the International Civil Aviation Organization (ICAO), EUROCONTROL and Flightradar24, it emerged that COVID-19 had a negative impact on airport operations mainly affecting their revenue streams. Travel restrictions and border closures had a debilitating impact on the airports and the aviation component of the tourism industry. With airlines grounded, the airports converted into parking lots and ghost towns. With this, there were drastic declines in receipt in landing, departure fees and non-aeronautical revenue. The remaining limited operations that continued in many airports related to service and facilitate the delivery of medical and other essential supplies, including food and critical raw materials. These could not raise adequate revenues to sustain many airports. Globally, the closure of airports also affected more than 6 million people directly employed in these airport-related services, including shops, car rental companies, airport restaurants and that of air navigation systems. The study recommends that the same support offered to the aviation industry in the form of grants, tax exemptions, preferential loans and so on be extended to airports. Airports play a central role in the global economy, tourism economy and future recovery efforts.