Written question WQ87114

Prior to the pandemic, Cardiff Airport had seen a significant turnaround, with continued growth in passengers. Figures from the Civil Aviation Authority in March 2020 showed passenger growth had increased by more than 50% since the Welsh Government purchased Cardiff Airport in 2013.

Since the pandemic, demand for air travel across the world has fallen and has not recovered fully. Our recovery plan for the airport remains in place, but clearly, the current economic climate is incredibly tough for the aviation sector.

We will assess how effective the investment has been once the airport has fully recovered from the impact of pandemic and this current period of economic turbulence, and when financial sustainability has been achieved. With the departure of Wizz Air, the pathway to profitability is likely to be longer. It is important to remember at this time, the importance the airport plays in international connectivity.

It is vital for Wales’ economic development that we have strong international connectivity to and from Wales as well as a welcoming open door for tourism. The airport brings significant economic benefits to Wales.

In the most recent independent economic impact analysis, pre-pandemic, in September 2019 it was estimated that the airport’s direct economic footprint (the economic activity of the firms on-site at the airport) was c£87m Gross Value Added (GVA), based on c2,000 employees employed in and around the site. It estimated a further £159m GVA from indirect economic activity i.e. economic activity of firms in the supply chain, based on an estimated 3,500 such jobs.

There have been no discussions, and there is no current plan, to sell the airport. We remain committed to supporting it to recover from the impact of the pandemic and become a self-sustaining vital piece of Wales’ national infrastructure.

The £42.6m rescue and recovery package we have put in place is designed to enable Cardiff Airport to become self-sustainable and profitable in the future. It remains our policy objective to secure the long-term future of the airport on a financially sustainable basis and thereby protect the value of the Welsh Government’s investment in the airport.