Aircraft movements refer to the take-off or landing of an aircraft at an airport. For airport traffic analysis, each arrival and departure are separately counted, with one cycle constituting two movements.
Key performance indicators (KPIs) are the most important business metrics for a particular industry. When understanding market expectations for the airport services industry, whether at a company or industry level, some KPIs to consider include:
Visible Alpha’s Standardized Industry Metrics
To understand market expectations for the airport services industry, a key information source is sell-side analyst estimates and consensus forecast data. The buy-side, sell-side, and public companies leverage this type of data to conduct competitive analysis, a type of analysis conducted by professional analysts that involves comparing standardized metrics of one company with those of similar companies. Because companies report metrics differently – and sometimes report on different metrics altogether – standardizing the key metrics for each company can be a cumbersome process.
Visible Alpha Insights includes analyst data, company data, and industry data at a level of granularity unparalleled in the market. Our industry data – Standardized Industry Metrics – enables market participants to quantify and compare market expectations for companies across 150+ industries.
Data as of April 24, 2024
Industry KPI Terms & Definitions
Visible Alpha offers an innovative, integrated experience through real-time, granular consensus estimates and historical data created directly from the world’s leading equity analysts. Using a subset of the below KPIs, this data can help investors hone in on the key drivers of companies to uncover investment opportunities.
Aircraft Movements
Aircraft movements refer to the take-off or landing of an aircraft at an airport. For airport traffic analysis, each arrival and departure are separately counted, with one cycle constituting two movements.
Air Traffic
Traffic, in the aviation context, denotes the organized movement of aircraft within a specific airspace or airport, managed to ensure safe and efficient operations.
Load Factor
Load factor is the ratio of the actual passenger or cargo load of an aircraft to its maximum capacity, indicating the efficiency of resource utilization and revenue generation for the airline.
Maximum Take-off Weight in Million Tonnes (MTOW)
Maximum Take-off Weight (MTOW) is the certified maximum mass at which an aircraft is permitted to take off, considering structural and operational limits. The unit is typically measured in kilograms or pounds.
Passengers
Passengers are people who travel aboard an aircraft, either for leisure, business, or other purposes.
Passenger Per Aircraft
Passenger per aircraft (PPA) is a metric used in the aviation industry to measure the average number of passengers carried by an aircraft during a specific period, typically calculated over a certain route, flight, or airline operation. It is calculated by dividing the total number of passengers carried by the total number of flights or aircraft operated during the same period.
Revenue Per Passenger
Revenue per passenger (RPP) is a financial metric used to measure the average amount of revenue generated per airline passenger. It is calculated by dividing the total revenue generated from passenger fees by the total number of passengers carried during a specific period.
Operating Margin
Operating margin measures the profitability of a company’s core business operations, excluding non-operating expenses like interest and taxes. For airport services companies, the operating margin would reflect the efficiency and profitability of their core services, such as terminal operations, ground handling, maintenance, and other related activities.
EBITDA Margin
EBITDA margin represents a company’s earnings before accounting for interest, taxes, depreciation, and amortization, as a percentage of total revenue. For airport services companies, EBITDA Margin offers a view of their operational efficiency and cash flow generation capacity.
Net Profit Margin
Net profit margin measures the percentage of revenue that translates into net profit after accounting for all expenses, including operating expenses, interest, taxes, depreciation, and amortization. For airport services companies, the net profit margin indicates the bottom-line profitability after accounting for all expenses associated with providing services.
Runway Capacity
Runway capacity represents the maximum number of aircraft movements that can be safely accommodated and operated within a specified timeframe, determined by aeronautical authorities to ensure airport safety and efficiency.
Aeronautical Services
Passenger Charges
Passenger charges are fees paid by individuals for air travel services. These charges apply to every passenger flying in and out of an airport, including those in transit. They contribute to the overall cost structure of air travel and help fund various services and facilities provided by airports to ensure a smooth and secure travel experience.
Parking Charges
Parking charges refer to fees levied for the parking of aircraft in open or in-contact stands at airports. These charges contribute to the cost structure associated with utilizing airport facilities for aircraft parking, ensuring efficient use of airport infrastructure and services.
Security Charges
Security charges are fees imposed by an airport to cover the cost of maintaining security services, which includes the deployment of personnel such as police and other security measures. These charges contribute to ensuring a safe and secure environment for passengers, airlines, and airport facilities
Landing Charges
Landing charges are fees imposed by an airport or its service provider on airlines for each landing and take-off, serving as compensation for the use of airport facilities during aircraft arrival and departure.
Non-Aeronautical Services
Real Estate
Real estate in the context of airports encompasses the leasing and management of spaces for establishments such as restaurants, lounges, and hotels, contributing to the overall infrastructure and amenities available within the airport premises.
Retail Concessions
The retail concessions sector involves managing and operating retail shops within an airport, contributing to the commercial aspect of airport services by providing a variety of shopping options for passengers.
Car Parking
Car parking refers to the provision of vehicle parking facilities at airports, typically charged on an hourly basis, offering passengers a convenient option for temporary parking while utilizing airport services
Advertising
Advertising involves services provided at airports, including the display of advertisements on screens or other mediums, offering businesses a platform to promote their products or services to a diverse audience of travelers.
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Guide to Airport Services Industry KPIs for Investment Professionals
This guide highlights the key performance indicators for the airport services industry and where investors should look to find an investment edge, including:
- Airport Services Industry Business Model & Diagram
- Key Airport Services Industry Metrics PLUS Visible Alpha’s Standardized Industry Metrics
- Available Comp Tables
- Industry KPI Terms & Definitions
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