Singapore’s Changi Airport has warned of a “daunting period” ahead as the impact from the Covid-19 pandemic shows no signs of abating.

Changi has suspended operations in two terminals as flights have dropped to the lowest levels in its history. It has also suspended the construction of a fifth terminal for at least two years.

“The battle with Covid-19 has only just begun,” Changi Airport Group said in its annual report. “The future does appear daunting with the situation showing no signs of abatement.”

Last year, Changi Airport opened Jewel, a shopping and entertainment complex covering 1.5m square feet (14ha). It includes stores and attractions including a rainforest, hedge maze and the world’s highest indoor waterfall.

This new complex has helped cushion the blow from the downturn in visitors, boosting revenue 2.6% to S$3.1bn. “Jewel is a new icon for Singapore and has redefined what it means to be an airport,” Changi Airport Group added.

But the group still paints a grim picture of the international travel hub and says the recovery is “highly dependent on how countries around the world manage border controls, the relaxation of air travel requirements and the development of viable medical treatments for the virus.”

Last week, US airlines began laying off thousands of workers after efforts to negotiate a new economic relief plan in Congress stalled. And this month the aviation trade body, the International Air Transport Association (IATA), downgraded its 2020 traffic forecasts, after “a dismal end to the summer travel season”.