The Los Angeles Board of Airport Commissioners reported some grim statistics Thursday, including an 85% decline in passenger traffic at Los Angeles International Airport due to the coronavirus outbreak.
LAX is also reporting a 50% reduction in concessions revenue and 80% reduction in rental car transactions.
“We have seen airlines reducing their flight schedules significantly,” said Sean Burton, president of the Airport Commission. “This results in a major loss of our revenue and creates a pressing need for us to tighten our belts accordingly.”
Since the state’s Safer at Home orders were put in place, Los Angeles World Airports, which operates LAX and Van Nuys Airport, has put a stop on new hiring and contracts, and employees can no longer work overtime.
“As part of our proactive and collaborative response to the revenue impacts created by the COVID-19 situation, we have established a LAWA task force on economic impacts,” Burton said.
The task force will coordinate with stakeholders such as labor unions, airlines and concession tenants to address the financial hardships.
Los Angeles Mayor Eric Garcetti on Wednesday said as part of the coronavirus federal stimulus package, there is $400 million slated to be given to LAX so it can continue operating and pay employees.
The package was approved by the Senate on Wednesday but has yet to be approved by the House of Representatives and signed by President Donald Trump.
Airport officials are conducting a “thorough review” as to how they can further reduce spending, Burton said.
Burton said that to keep airport guests and employees safe, they are updating the website FlyLAX.com with the airport’s most recent information.
The airport has installed more than 300 new hand sanitizers and is using virus- and bacteria-killing disinfectants on “high-touch” areas like handrails and escalators. FlyAway shuttles and buses at LAX are also being sanitized multiple times a day.