Olivier Jankovec, Director General of the L'Oréal Group, made this bitter assessment last week.ACI Europe at the virtual congress of European airports. The overall figures, including data up to 15 November, show that the passenger traffic down 81 % at European airports. A symbolic threshold was crossed on 15 November. On that day, the continent's airports passed the 1.5 billion passengers lost over the year.
Against this backdrop, European airports are reiterating their need for state aid to survive the crisis. Indeed, according to ACI Europe's Managing Director, while European governments have granted 33 billion in aid to the airline industryThis windfall would amount to less than one billion euros for airports.
Olivier Jankovec is also begging governments to simplify health protocols. Too restrictive with their compulsory quarantines, they stifle any possibility of recovery. As a result, traveller confidence is at an all-time low.
For Olivier Jankovec, a return to 2019 traffic levels is unlikely before 2024/2025. In addition to passenger mistrust, factors such as the absence of long-haul flights, falling average income and the disappearance of business travel will weigh on the business. The sector most affected remains business travel. According to a McKinsey study, this segment is in 2024 still 22% lower in volume than 2019.
Hubs in turmoil
The disappearance of long-haul flights has another consequence. It has undermined the hub systemIt has been deprived of the high volume of transfer traffic. And it is likely to remain affected for a long time to come. Not only because the airlines based at these hubs are reducing their services. But also because some of them are disappearing. In addition, there is an emerging demand for point-to-point flights to minimise the multiplication of transit points.
This situation naturally favours low-cost airlines. They are showing greater flexibility in setting up operations where there is demand. As Michael O'Leary, CEO of the Ryanair group, pointed out during the conference, the low-cost operator will deploy its fleet where it can benefit from the best operating conditions.
ACI Europe is also concerned about this situation. The association believes that many airports will be under pressure to grant new discounts to carriers. According to Olivier Jankovec, 70% European airports offer additional tax reductions due to covid. At the same time, 200 airports on the continent face potential bankruptcy under the weight of exploding debt.
But the future is beginning to look bright for a recovery. According to Olivier Jankovec, a vaccine and rapid tests offer some glimmers of hope, even if "there is still a long way to go before the light at the end of the tunnel", he said.
