AirportInfo
Non-Aeronautical Revenue
March 2014
Non-Aeronautical Revenue
Non-aeronautical revenue critically determines the financial viability of an airport, as these
revenue sources tend to generate higher profit margins in comparison with aeronautical
activities, which are mostly cost-recovery. Aeronautical revenues are collected from such
sources as landing charges, which are circumscribed by either regulated tariffs, contractual
agreements between carriers and airports, or a combination thereof. Thus, airports are
heavily reliant on the non-aeronautical side of the business as a driver of revenue growth.
These sources include:
 Parking and Airport Access – Fees for all airport-owned parking lots and, in some
cases, off-airport concessions bringing travelers to and from the airport.
 Rental Car Operations – Revenue from rental car operations within or outside a
terminal.
 Terminal Concessions – Rents paid by gift shops, restaurants, and newsstands, and,
if agreed to in the concession contract, a percentage of the profits.
 Land Rent – Excess airport land may be rented for golf courses, office buildings,
hotels, farming or other uses.
 Advertising – Ads placed on airport walls, billboards and buses is a source of airport
income.
2
US Airports Have Navigated Tough Market Conditions
Since 2009 and Have Shown Signs of Recovery
10
10%
9
5%
7
0%
6
5
-5%
4
-10%
3
2
-15%
1
0
-20%
2009
2010
2011
2012
Aeronautical Operating Revenue
Nonaeronautical Operating Revenue
Aeronautical Percentage Change from Previous Year
Nonaeronautical Percentage Change from Previous Year
Note: 2012 is the latest full fiscal year data available in FAA CATS (Compliance Activity Tracking System) database.
Source: FAA, CATS: Report 127
3
% Change YoY
Billions of U.S. Dollars
8
Parking, Rental Cars and Terminal Concessions are the Three Main
Sources of Non-Aeronautical Revenue for US Airports
2012 ($ Millions)
Total Operating Revenues
$16,740 Million
Total Non-Aeronautical Revenues
$7,793 Million
Terminal Services
$391
5.1%
NonAeronautical
Revenue $7,793
46.5%
Aeronautical
Revenue $8,951
53.5%
Other $814
10.6%
Food & Beverage
$539
$7%
Land & Non-Terminal
Facilities $574
7.5%
Parking & Ground
Transportation $3,189
41.5%
Retail & Duty Free
$643
8.4%
Rental Cars $1,535
20%
Notes: 2012 is the latest full fiscal year data available in FAA CATS database.
Terminal Concessions include Retail & Duty Free, Food & Beverage and Terminal Services.
Source: FAA, CATS: Report 127
4
Non-Aeronautical Revenue Has Grown On Average Over 5%
Annually Since 2004, Compared to 1.5% increase in Passenger
Enplanement Over the Same Period
$9,000
$7,420
$7,024 5.3% $6,870 $6,994
$319
16.6%
(8.0%) 1.8%
$8,000
Millions of U.S. Dollars
$7,000
$6,000
$5,000
$4,000
$5,184
3.9%
$226
$521
$1,195
$4,897
(5.9%)
$4,987
1.8%
$228
$506
$261
$534
$1,136
$1,122
$5,655
11.8%
$251
$6,092
7.2%
$261
$299
$5,861
(3.9%)
$604
$682
$284
$639
$574
$714
$332
$344
$663
$785
$1,564
$1,502
$7,508
6.8%
$1,419
$4,408
$4,446
2009
2010
$433
$379
$824
$1,494
$1,467
$7,792
3.6%
$822
$1,539
$1,302
$1,412
$1,252
$3,000
$4,542
$2,000
$3,577
$3,243
$3,027
$3,070
2001
2002
2003
$3,925
$4,824
$4,811
$4,998
2011
2012
$3,527
$1,000
$0
2004
Large
2005
Medium
2006
2007
Small
Notes: 2012 is the latest full fiscal year data available in FAA CATS database.
CAGR stands for compounded annual growth rate.
Source: FAA, CATS: Report 127
2008
Non-Hub
5
Terminal Concessions Revenue from US Airports in
2012 Exceeded the Previous Peak in 2008
$1,600
$1,387
12.3%
Millions o f U.S. Dollars
$1,400
$1,200
$1,018
(10.4%)
$1,000
$181
$920
(10.7%)
$191
$800
$600
$1,113
15.4%
$941
2.3%
$1,177
5.5%
$253
$1,217
3.3%
$1,468
5.5%
$1,407
(4.3%) $1,367
(2.9%)
$1,507
9.3%
$1,574
4.2%
$391
$378
$314
$309
$373
$340
$280
$246
$585
$217
$603
$533
$428
$446
$496
$491
2005
2006
$644
$570
$544
$465
$484
$526
$539
2009
2010
2011
2012
$439
$463
$395
$415
$400
$200
$428
$375
$334
$309
2001
2002
2003
$547
$569
2007
2008
$0
2004
Food and Beverage
Retail and Duty Free
*Services and Other
Notes: 2012 is the latest full fiscal year data available in FAA CATS database. CAGR stands for compounded annual growth rate.
‘Services and Other’ includes a variety of amenities and personal services for passengers including ATM’s, Foreign Exchange, Internet
6
Kiosks & Luggage Carts.
Source: FAA, CATS: Report 127
US Airports Have Seen Steady Growth in Rental Car, Parking
& Ground Transportation Revenues Over the Last 4 Years
$5,000
$4,500
$4,250
$4,548
8.4%
$4,305
1.9%
Millions of U.S. Dollars
$4,000
$3,500
$1,480
$4,724
6.1%
$1,535
$1,370
$1,391
$2,879
$2,913
$3,068
$3,189
2009
2010
2011
2012
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Parking
Rental Car
Notes: 2012 is the latest full fiscal year data available in FAA CATS database.
Excludes Customer Facility Charge
Source: FAA, CATS: Report 127
7
Median Public Parking & Ground Transportation Revenue
Per Enplanement
Large
Medium
Small
Non
$7.0
$6.5
$6.0
$5.5
$5.0
$4.5
$4.0
$3.5
$3.0
2009
2010
2011
2012
Robust public parking and ground transportation revenues in recent years have resulted in growth across all hub sizes. The
dominance of O&D traffic at medium, small and non-hub airports translated to higher parking & ground transportation revenue
on a per enplanement basis. Large hubs reported a lower figure due to a relatively higher share of connecting passengers.
Note: 2012 is the latest full fiscal year data available in FAA CATS database.
Figures used are median for each FAA hub category.
Source: FAA, CATS: Report 127
8
The Sources of Non-Aeronautical Revenue Vary
Significantly Across Regions
Retail
100%
90%
Food & Beverage
12.3%
Car Parking
Rental Cars
Property/Rent Income
Advertising
10.2%
19.2%
19.9%
27.1%
80%
70%
Other
5.4%
8.1%
4.5%
2.8%
14.3%
4.2%
18.5%
20.3%
60%
50%
40%
16.8%
29.1%
5.0%
14.0%
22.7%
2.3%
1.0%
14.9%
3.5%
7.0%
4.8%
2.3%
6.2%
5.4%
5.9%
30%
20%
36.2%
36.6%
33.5%
39.0%
29.9%
6.7%
10%
7.7%
0%
Africa
Asia-Pacific
Europe
Latin America-Caribbean
North America
World Region
Notes: Figures are percentage of region’s total non-aeronautical revenue. May not equal 100% due to rounding.
‘Other’ is defined as any other source that contributes to >3% of total non-aeronautical revenue.
Source: 2012 ACI World Airport Economics Report
9
North American Car Culture Leads to Higher Revenue
from Car Parking and Rental Car Operations
Rental Car Concessions
16.8%
North America
Latin America-Caribbean
Europe
Car Parking
39.0%
3.5%
6.2%
2.3%
14.9%
1.0%
Asia-Pacific
7.0%
4.9%
Africa
14.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
World Region
Note: Figures are percentage of region’s total non-aeronautical revenue.
Source: 2012 ACI World Airport Economics Report.
10
Dominance of Domestic Passengers at North American Airports
Means Reduced Duty-Free Retail Sales Compared to Other Regions
Food & Beverage
6.7%
7.6%
North America
5.9%
Latin America-Caribbean
29.9%
5.4%
Europe
Asia-Pacific
Retail Concessions
33.5%
2.3%
36.6%
4.8%
Africa
36.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
World Region
Note: Figures are percentage of region’s total non-aeronautical revenue.
Source: 2012 ACI World Airport Economics Report.
11
Rapid Growth of Property & Real Estate Particularly in
Asia-Pacific Has Outpaced North America
Advertising
Property & Real Estate Income or Rent
5.4%
North America
14.3%
4.2%
Latin America-Caribbean
22.7%
2.8%
Europe
20.3%
4.5%
Asia-Pacific
29.1%
8.1%
Africa
18.5%
0%
5%
10%
15%
20%
25%
30%
World Region
Note: Figures are percentage of region’s total non-aeronautical revenue.
Source: 2012 ACI World Airport Economics Report.
12
AirportInfo
Contact:
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Tel: 202-293-8500
Email: [email protected]
www.aci-na.org
March 2014