IKIA Revenues Decline Over Coronavirus Outbreak

ollowing the outbreak of coronavirus, the number of flights and passengers at Tehran’s Imam Khomeini International Airport during the month ending March 19 declined by 70% and 77% respectively, leading to a 60% decrease in revenues compared with the same period of the year before, says Managing Director of Imam Khomeini Airport City Mohammad Mehdi Karbalaei.

“IKIA saw a 91% drop in the number of flights and a 97% decrease in the number of passengers, resulting in an 88% decline in revenues year-on-year,” he was quoted as saying by Mehr News Agency.

“The company has 5,000 employees on its payroll, of whom 3,000 are offering airport services across the whole area of Imam Khomeini Airport City.”

Karbalaei noted that the past two months’ rents were forgiven for the company’s commercial tenants, although 3,000 people are at risk of losing their jobs if the current trend persists.

Imam Khomeini International Airport is the prime international airport of Tehran located 30 kilometers southwest of the capital city.

Iran Airports Company’s latest report shows Imam Khomeini International Airport registered 40,197 takeoffs and landings (a 9% YOY decrease) during the first 11 months of the current Iranian year (March 21, 2019-Feb. 19), while transporting more than 6.49 million passengers (a 4% decline) and over 129,710 tons of cargos.

IKIA ranked third on the list of Iran’s busiest airports during the 11-month period after Tehran’s Mehrabad International Airport and Mashhad International Airport.

IAC registered a total of 349,953 takeoffs and landings during the period under review, which indicates a 3% decline compared with the similar period of last year.

More than 43.16 million passengers were transported, indicating a 1% decrease year-on-year.

Over 431,213 tons of cargos were handled during the same period, which also shows a 1% decrease year-on-year.

Domestic and Foreign Flights

A total of 291,209 takeoffs and landings were registered by domestic flights during the 11 months, down 2% YOY. More than 34.21 million passengers and 235,004 tons of cargo were transported domestically, both indicating a 1% rise YOY.

On the international front, 58,744 takeoffs and landings were registered, down by 8% YOY. A total of 8.95 million passengers and more than 178,209 tons of cargo were transported to and from overseas destinations, down 5% and 3% respectively year-on-year.

From the 11th Iranian month’s perspective (Jan. 21-Feb. 19), a total of 29,429 takeoffs and landings were registered, which indicates a 2% decline YOY.

More than 3.53 million passengers and 31,018 tons of cargos were transported during the month, indicating a 5% and 15% decrease respectively YOY.

The report shows 25,387 takeoffs and landings were registered by domestic flights from Jan. 21 to Feb. 19, unchanged YOY. Close to 2.97 million passengers and 21,884 tons of cargo were transported domestically, indicating a 3% and 6% decrease respectively YOY.

On the international front, 4,042 takeoffs and landings were registered, showing a 10% decrease YOY. A total of 553,675 passengers and more than 9,134 tons of cargo were transported to and from overseas destinations, indicating a 17% and 31% decrease respectively YOY.

Iran Airports Company is an arm of the Ministry of Roads and Urban Development, which manages 54 airports across the country.

The dramatic decline in airport traffic as a result of the coronavirus spread and the ensuing flight restrictions will be further elaborated in IAC’s upcoming reports.