While passenger traffic numbers will continue to grow at a stable rate, some industry experts are looking at what could be trending next year, such as how many airports are looking at expansion projects all over the world, how the competitive framework will create opportunities and how disruptive the UKs departure from the EU will be.
Biometrics and integration
Intensified competition driven by passenger growth is already encouraging greater investment in airports infrastructure. This is most commonly seen in the introduction of biometrics, and the drive towards the single-token airport journey. Biometrics are creating opportunities, but are also creating disparate data, so integration is becoming the focus of airports on a global scale.
Across Europe, traffic is increasing, and industry analysts conclude that the rise in line with GDP could spell airport revenue increases of 2-4%. The uncertainty still surrounding Brexit and the UKs access to the European Common Aviation Area (ECAA) following March 2019 is creating concern about reduced passage of passengers and freight through the UK.
Although many experts agree that the likelihood of a standstill of EU-UK traffic is slim, in the short-term, traffic could be affected, particularly when another area of uncertainty surrounds the right of movement of passengers between the two areas and whether visa arrangements will be made. Airport operators and airlines with a reliance upon EU-UK traffic may face a period of disruption which could result in revenues being affected.
Merging airports and acquisition
Airports across the world, and notably in the Asia-Pacific region are looking towards the consolidation of assets as competitive positioning increases. Opportunities for mergers and acquisitions are popping up all over Europe due to the expansion of favourable conditions such as low interest rates, for example.
This trend is likely to increase, according to industry analysts, and additional opportunities look favourable in regions such as Latin America, where in 2019, 12 airports in Brazil are being scheduled for investment and privatisation. This is expected to attract global interest.