A decade of growth wiped out by the coronavirus pandemic
Since 2010, the global air traffic passenger demand has been increasing steadily with at least four percent per year. During the same period, European passenger traffic experienced an even higher development trend. Although one observes a steady positive growth path over the recent years, the aviation industry is not exempt from the influence of economic shocks. The COVID-19 pandemic has led to a deep economic shock that affected the aviation industry severely. After losing 43.8 billion U.S. dollars in 2020, European airports lost an estimated 39.7 billion U.S. dollars in revenue in 2021. European airlines recorded a net profit loss of 34.5 billion U.S. dollars in 2020 and 11.9 billion U.S. dollars in 2021.The devastating impact of COVID-19 on Heathrow
When London Heathrow Airport (LHR) expanded in size in 2009, the airport was projected to be the largest passenger airport in Europe to meet the increasing air travel demand. In 2019, London Heathrow Airport was the busiest airport in the European Union but 2020 was one of the most challenging years for the UK airport. Revenue streams were down 62 percent, while passenger numbers plummeted from 80.9 million in 2019 to 22.1 million. Similar to London (LHR), Frankfurt Airport experienced a 55 percent loss in revenue and transported only 18.8 million passengers in 2020. While the revenue and passenger numbers improved slightly at both airports in 2021, they were still way below the pre-pandemic levels.
