What are the most effective financial performance indicators for airports?

1 Revenue per passenger

Revenue per passenger (RPP) is a key indicator of how well an airport is generating income from its core activity: serving passengers. RPP measures the total revenue from aeronautical and non-aeronautical sources divided by the total number of passengers. A higher RPP means that the airport is able to capture more value from each passenger, either by charging higher fees, offering more services, or attracting more spending. RPP can vary depending on the type, size, and location of the airport, as well as the mix of airlines, routes, and passengers.

2 Cost per passenger

Cost per passenger (CPP) is another important indicator of how efficiently an airport is operating. CPP measures the total operating expenses divided by the total number of passengers. A lower CPP means that the airport is able to provide its services at a lower cost, either by reducing expenses, increasing productivity, or optimizing resources. CPP can also vary depending on the factors mentioned above, as well as the level of service, quality, and safety standards.

3 EBITDA margin

EBITDA margin is a widely used indicator of how profitable an airport is. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and it represents the operating income of the airport before accounting for financing and capital costs. EBITDA margin measures the EBITDA divided by the total revenue, and it expresses the percentage of revenue that is left as operating profit. A higher EBITDA margin means that the airport is able to generate more profit from its revenue, either by increasing RPP, decreasing CPP, or both.

5 Customer satisfaction

Customer satisfaction is a qualitative indicator of how well an airport is meeting the expectations and needs of its passengers. Customer satisfaction can be measured by various methods, such as surveys, feedback, ratings, or reviews. Customer satisfaction can affect the financial performance of an airport in several ways, such as influencing passenger loyalty, spending, word-of-mouth, and reputation. A higher customer satisfaction means that the airport is able to deliver a positive and memorable experience to its passengers, either by enhancing service quality, convenience, comfort, or safety.