Airport Finances Impacted by COVID-19

Brisbane, Sydney, Perth, and Melbourne Airports all reported operating losses from their aeronautical services despite passenger numbers increasing in the second half of 2021-2022.

As directed by the Australian Government, the Australian Competition and Consumer Commission (ACCC) monitors the aeronautical and car parking services of the four largest airports in Australia.

Due to COVID-19, all Australian airports have recorded noticeable drops in their financial performances since 2018-2019 with Sydney and Melbourne airports by far the most negatively affected with both airports profit margins dropping by 48% in 2021-2022.

This data comes from the ACCC’s latest Airport Monitoring Report, which analyses and summarises the data the four airports are currently required to report.

Unfortunately, the data airports are required to submit to the ACCC lack the detail necessary to determine if or how much their natural monopoly is being used – something both the ACCC and airlines have raised as concerns.

From the ACCC article here:

The ACCC believes that publishing more detailed information will increase transparency for the benefit of airport users and will provide greater insight to the ACCC and governments on whether the four airports are exercising their market power in relation to specific services.

“Airports perform a vital role in supporting economic activity in Australia, and the changes to the monitoring regime that we’ve recommended should benefit airport users and, ultimately, the Australian public,” ACCC Commissioner Anna Brakey said.