The world’s most valuable airport brands stand to lose up to US$1.7 billion worth of brand value as a result of the COVID-19 pandemic, according to the latest Brand Finance Airports 25 2020 report.
Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on 1 January 2020. The likely impact on brand value was estimated for each sector. The industries have been classified into three categories – limited impact (minimal brand value loss or potential brand value growth), moderate impact (up to 10% brand value loss), and heavy impact (up to 20% brand value loss) – based on the level of brand value loss observed for each sector in the first quarter of 2020.
“The COVID-19 crisis presents a dangerous threat to airports around the world, which stand to lose 20% of overall brand value and could struggle to cope with ever-decreasing demand in the face of travel restrictions as global aviation reaches a virtual standstill,” said Savio D’Souza, Valuation Director, Brand Finance. “With the future effectively out of their hands, airports will have to rely on the strength of their brands and their ability to influence key stakeholders such as governments, airlines and investors to recover once the world returns to some form of normality.”