Ways for increasing revenue
There are many ways for increasing revenue
Some weeks ago I shared a chart with you showing the average operational and capital expenditures per year per departing passenger of smaller regional airports. This time I have introduced the average fee airlines would pay to the airport and we see that an airport handling 1 Million passengers per year can only cover the operational expenditures and the annual investments if it handles mainly legacy carriers.
Most airports have no chance to finance their capital and administration costs. However, there are examples of airports with about 1 million passengers that make profits: either because they are able to generate higher aviation revenues per passengers (e.g. Innsbruck) or because they follow a strict cost management approach. Some other airports have high revenues from the real estate business or the General Aviation segment. Every airport can learn from the others:
- Invest in the catchment area to make it more attractive (accessibility, creating an incoming market)
- CAPEX programme according to market needs
- Operational Hours and staff (how many fire fighters are necessary)
- Re-Positionning the airport as the mobility or connectivity hub of the region.
Now I am looking for more data and examples - who wants to share?
