China’s slow recovery part of why Changi Airport narrowly missed pre-pandemic traffic levels, say analysts

WHAT CAN CHANGI DO? 

Changi Airport will need to stay nimble and adaptable even as it’s expected to meet pre-pandemic traffic figures this year, said the analysts.

Airport hubs like it have to focus on strengthening their network to grow their addressable market, not only in the surrounding region but also new destinations further afield, said Mr Lim. 

“This will allow airport hubs to capture additional passenger and cargo flows with a better breadth of network and depth of frequency,” he said. 

CAG said on Jan 22 that it added eight passenger airlines in 2024 as well as 11 destinations including Brussels, Vancouver and Phu Quoc in Vietnam.

This year, more new destinations will be launched, including Labuan Bajo in Indonesia from March and Vienna from June. 

Mr Lim said Changi Airport also needs to continue providing efficient and reliable services to transiting and arriving passengers alike.

“This entails areas such as ensuring seamless transfers through the airport by transit passengers, bags and cargo; efficient ground handling operations that facilitates on-time performance; resilient processes that can adapt to disruptions; among others.” 

CAG in its statement last week said it would continue to invest airport infrastructure, systems and processes to improve handling capacity, “so as to be well-placed to support the rising demand for air travel in the coming years”.

Mr Lim said that with Changi Airport’s 2024 passenger levels at 99.1 per cent and “only less than a percentage point away” from pre-pandemic ones, its recovery trajectory was “less of a concern”. 

And Mr Patel said Changi Airport has already taken extensive steps to drive recovery. 

“External factors like geopolitical tensions, economic conditions and China’s slow recovery remain significant challenges beyond its control,” he said. 

“While the airport can continue to innovate and optimise operations, a full recovery also depends on broader macroeconomic and policy developments.”