New non-aeronautical revenue streams are critical to airport recovery from the COVID-19 pandemic. Non-aeronautical revenue—airport revenue from sources other than airlines—typically includes retail concessions,1 car parking, and property and real estate.
For aviation, global recovery to 2019 levels is projected to take several years, into 2023 for markets with significant domestic air travel, especially leisure travel, and 2024 for markets that have significant international traffic.2
How to improve revenue generation as demand rebounds is a key question for airlines and airports. Before COVID-19, global airport revenue was rising but with a decline in revenue per passenger. Major organizations, such as the International Civil Aviation Organization (ICAO) and Airports Council International (ACI), cite the importance of developing sources of non-aeronautical revenue to bolster revenue from aeronautical activities.3
In the following article—to help drive this process forward today—WSP aviation advisors explore how to develop innovative services to support enhanced passenger experiences and strengthen non-aeronautical revenue streams.
WSP aviation advisors: John van Woensel, Vice President, National Aviation Planning Manager, United States; Tracy Beach, Senior Aviation Financial Planner, United States; Marco Mejia, Vice President, Aviation, Canada.