Airports: Normalcy Returns, But For How Long?

As of 2024, airports around the world are still recovering from the impact of the COVID-19 pandemic. While some airports have resumed normal operations, others are still working to rebuild passenger traffic, which was down 56% at the Indianapolis International Airport in 2024 compared to the previous year. Fitch Ratings has upgraded the bond ratings of several major U.S. hubs, indicating a recovery in passenger numbers and finances for these airports. Additionally, airports in tourist destinations like Denver and Miami have seen an increase in passengers, while West Coast airports serving business travellers are lagging. Overall, the recovery of the aviation industry is expected to take a few years, with adaptations and precautions in place to ensure the safety and efficiency of air travel in a post-pandemic world.

Airports in tourist destinations have more passengers than pre-pandemic

While airports around the world are still recovering from the impact of the pandemic, some airports in tourist destinations have seen a faster rebound in passenger numbers.

In the United States, Fitch Ratings reported that airports in tourist destinations like Denver and Miami have experienced a stronger recovery, with passenger numbers surpassing pre-pandemic levels. This trend is also observed in Dubai, where Dubai International Airport (DXB) surpassed 2019 traffic levels in 2023, welcoming 87 million guests. DXB is ranked as the world's top airport for international passenger numbers for the 10th consecutive year in 2023.

However, the recovery has been uneven, and not all airports have returned to their pre-pandemic passenger volumes. For instance, Amsterdam's Schiphol Airport, the largest airport in the Netherlands, reported an 8% increase in passenger volume in 2024 but remained below the 2019 pre-pandemic level. Similarly, West Coast airports in the U.S., such as Los Angeles, San Francisco, and Portland, are still lagging in their recovery, with passenger numbers yet to reach pre-pandemic levels.

The recovery in the aviation industry is influenced by various factors, including the easing of travel restrictions, the impact of the war in Ukraine, structural changes in the aviation market, and the resilience of specific markets or regions. While some airports in tourist destinations have seen a strong rebound in passenger numbers, others are still working towards a full recovery.

The pandemic significantly disrupted air travel, and it is encouraging to see airports in tourist destinations leading the recovery. As travel restrictions continue to ease and demand for leisure travel increases, these airports are well-positioned to benefit from the growing appetite for tourism and travel.

West Coast airports are lagging behind due to business travel reliance

It has been three years since the pandemic began, and many industries are still feeling its effects. While most of the world has opened up, with travel restrictions lifted and borders now porous, one sector that is still struggling to get back on its feet is aviation. Airports across the globe are experiencing a mixed bag of fortunes; some have bounced back, while others lag due to a variety of factors, one of which is a reliance on business travel.

This is particularly evident on the West Coast of the United States, where airports are notably slower to recover compared to other regions. The aviation industry is complex, and a variety of factors influence the speed of recovery. One of the key factors is the type of travel that an airport caters to. West Coast airports, especially those in California, have traditionally relied heavily on business travel. With the rise of remote work and virtual meetings, business travel is still significantly below pre-pandemic levels, and this has hit West Coast airports hard.

Los Angeles International Airport (LAX), for example, has historically had a large proportion of its passenger traffic from business travelers. With the pandemic causing a shift in work habits, many businesses have cut back on travel, and some have even embraced remote work permanently. As a result, LAX is still experiencing lower passenger numbers, and this has had a knock-on effect on the local economy, with businesses that rely on airport traffic, such as car rental companies and hotels, also suffering. A similar story can be seen at San Francisco International Airport (SFO), where passenger numbers are still down by around 20% compared to pre-pandemic levels.

In contrast, airports in other regions that cater to a wider variety of travelers, such as those with a large leisure market, have bounced back more quickly. Florida's airports, for example, have seen a faster recovery due to the state's strong leisure travel market, with tourists flocking to its beaches and theme parks. Additionally, the rise of low-cost carriers and the increased affordability of air travel have contributed to the rebound of airports in regions that cater to cost-conscious travelers. West Coast airports are now facing the challenge of adapting to this new landscape, with some looking to attract more leisure travelers and others focusing on improving the efficiency of their operations to reduce costs.

Hong Kong International Airport resumed normal operations after a security software update mistake

On July 20, 2024, Hong Kong International Airport resumed normal operations after a mistake in a security software update caused hours-long outages in global computer systems. The massive IT outage on Friday affected numerous industries, including banks and media companies. Airlines' passenger check-in systems were also impacted, but the airport authority assured that flight operations were not affected and that affected airlines had switched to manual check-in. Globally, 5,000 out of 110,000 scheduled commercial flights were canceled on Friday.

The Hong Kong International Airport's resumption of normal operations is a positive development after the widespread disruption caused by the security software update mistake. The incident highlights the interconnectedness of various industries and the potential for far-reaching consequences when technical issues arise.

During the outage, the airport authority implemented manual check-in processes to ensure that flight operations could continue as scheduled. This quick response helped to minimize the impact on passengers and maintain the smooth flow of air traffic. It is a testament to the resilience and adaptability of the airport's operations team in managing the situation effectively.

As services gradually came back online, the airport was able to restore its passenger check-in systems, providing relief to travelers and airlines alike. The incident serves as a reminder of the critical role that technology plays in the smooth functioning of airports and the wider travel industry. It also underscores the importance of having contingency plans and backup systems in place to mitigate the impact of potential disruptions.

The resumption of normal operations at Hong Kong International Airport is a welcome development for travelers and businesses alike. It demonstrates the ability of the airport and the industry as a whole to adapt and recover from unforeseen technical challenges. By learning from this incident, airports and other affected industries can enhance their preparedness and minimize the impact of similar events in the future.

Dubai Airports are operating at full capacity after rainfall disruptions

The Dubai International Airport, the world's busiest for international travel, was flooded, and roads in and around the airport were blocked due to water accumulation. The rainfall, which began on April 15, intensified on April 16, and by the end of the day, it exceeded the average yearly rainfall at the airport site.

Dubai Airports CEO Paul Griffiths stated that the airport returned to its normal flight schedule ahead of its recovery schedule and is now operating around 1,400 flight movements per day. He acknowledged that it was challenging to navigate the adverse weather event and thanked all those who worked tirelessly to restore operations.

During the disruptions, guest welfare was a key priority, and over 75,000 food packs were delivered to affected travellers across both Dubai International (DXB) and Dubai World Central (DWC) airports. While challenges remain, including processing the baggage backlog, the airport is fully functional, and passengers are advised to arrive at the terminal three hours before their departure time to facilitate smoother operations.

Airports in the Philippines are back to normal operations after Typhoon Nona

Typhoon Nona caused operational disruptions at airports across the Philippines. The Civil Aviation Authority of the Philippines (CAAP) announced that 81 of the 82 airports under its management had resumed normal operations following the storm. The Catarman airport was the only exception, as a terminal was rendered unusable due to a collapsed ceiling. However, the runway became operational again, and the flight service station resumed operations.

Among the airports that returned to normal operations were those in several cities and municipalities, including Tacloban, Ormoc, Calbayog, Catbalogan, and Maasin in Leyte, which sustained only minor damage. The CAAP also reported that airports in Legaspi, Naga, Masbate, Virac, and other areas in Mindoro had resumed normal operations with only minimal damage.

The CAAP spokesperson, Eric Apolonio, stated that almost all airports in Northern Luzon had returned to normal operations, except for the Laoag airport, which was undergoing repairs.

The quick resumption of normal operations at airports across the Philippines after Typhoon Nona demonstrates the resilience and efficient management of the country's aviation industry.

Frequently asked questions