WILL RECOVERING PASSENGER NUMBERS IMPROVE AIRPORTS' BOTTOM LINE?

This paper examines the relationship between passenger numbers and key drivers of airport financial performance, in order to determine if the recent increase in passenger traffic flow will have a positive impact on airports' income statements. Data from 2000-2001, 2001-2002 and 2002-2003 AAAE Rates and Charges Surveys was used to identify 112 paired data points for which information was available for consecutive years. The annual percentage change in enplaned passengers and the corresponding annual percentage changes in non-airline revenue and operating expenses (OPEX) were calculated. The data shows that OPEX consistently increased independently of the changes in passenger traffic experienced in the survey period. Regression analysis of the data found no significant relationships between these variables. For small hub airports, a weak negative relationship was found between changes in operating expenses and passenger traffic. An increase or decrease in passenger numbers was associated with a similar increase or decrease in non-airline revenue for both large and medium hub airports. A significant positive relationship as also found between parking and ground transportation revenues and passenger traffic, however, no significant relationship was found between either retail or duty free revenues and passenger traffic.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/07445326
• Corporate Authors:

  AAAE Service Corporation, Incorporated

  4212 King Street
  Alexandria, VA  United States  22302
• Authors:
  • Andrews, J P
• Publication Date: 2003-11

Language

• English

Media Info

• Features: Figures;
• Pagination: p. 24-25
• Serial:
  • Airport Magazine
  • Volume: 15
  • Issue Number: 6
  • Publisher: AAAE Service Corporation, Incorporated
  • ISSN: 0744-5326

Subject/Index Terms

• TRT Terms: Airport parking; Airports; Expenses; Financial analysis; Ground transportation; Passenger traffic; Regression analysis; Retail trade; Revenues
• Subject Areas: Aviation; Data and Information Technology; Finance; Terminals and Facilities;

Filing Info

• Accession Number: 00967203
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 24 2003 12:00AM