Airport manager, PT Angkasa Pura II (AP II) targets the total number of passenger movements at 19 airports to reach 45 million passengers in 2021 or growth 27 percent from last year - Photo by PR Indonesia

JAKARTA (theInsiderStories) – Major airport operator in Indonesia, PT Angkasa Pura (AP) II cut its revenues target from Rp12.8 trillion to Rp8.96 trillion (US$578.06 million) caused the impact of COVID-19. The reasoned, the aircraft passengers is declining since the virus outbreak.

“Until the end of this year, our revenue is expected to reach around 70 percent of the initial target in this challenging year. However we will boost our revenue from other sectors such as maximizing the utilization of vacant land, commercial, retail and other divisions,” said the CEO, Muhammad Awaluddin, in a written statement released on Thursday (04/23)

He reported, as of January 2020 the average flight was still around 2,169 flights a day, but this month (April 1 to 21) the average flight dropped to 650 flights per day.  In response to the challenges of the global pandemic, now AP II is undergoing a business survival phase by focuses on labor protection, optimizing cash flow, and maintaining financial performance.

“We can achieve this goal through various financial savings such as reducing operational costs, improving the efficiency of expenditure items, and eliminating non-productive costs,” said Awaluddin.

Recently, Airport Council International (ACI) director, Angela Gittens said, that aircraft passenger traffic in the world in 2020 was initially estimated to reach 9.5 billion passengers, up 4.39 percent compared to last year 9.1 billion fares. However, looking at the developments of COVID-19, this estimate is believed to have not been reached, based on the realization in the first quarter (1Q) of 2020.

The passenger traffic in the world in January was 6.9 percent lower than originally estimated. Then in February it was 22.9 percent decreased and March was dropped by 53.1 percent. Cumulatively, the passenger traffic in the world during 1Q of 2020 was 28.3 percent lower or equivalent to 620 million passengers compared to initial estimates.

Seeing these conditions, ACI estimates that the number of air fares in the world in 2020 is only about 5.9 billion passengers or corrected 38 percent (equivalent to 3.6 billion people) compared to the initial estimate of 9.5 billion passengers.

The Indonesia National Air Carriers Association (INACA) also reported that the number of airplane passengers since last month has dropped dramatically and inline with that the national airlines have reduced the number of flights, both routes and frequencies, by up to 50 percent or more.

While, minister of finance, Sri Mulyani Indrawati stated, that during January – February 2020 there were 12,703 flights canceled at 15 major airports in Indonesia, consisting of 11,680 domestic flights and 1,023 international flights. She revealed that the air service sector lost revenue of Rp207 billion, of which Rp48 billion came from flights to and from China.

Awaluddin noted, the number of fares at the company’ 19 airports this year was initially estimated at 93.92 million passengers. But now, the operator sees the number could lowering to 57.80 million passengers or drops 38.45 percent if the pandemic prolong.

US$1: Rp15,500

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