Table of Contents
How do US airports make money?
Believe it or not, many airports, often those with the greatest passenger traffic, are hugely profitable. Over half of airport revenue comes from passenger fees included in your ticket price, while the other roughly 40 percent is generated by non-aeronautical activities.
What are the main sources of capital financing for US airports?
The major funding sources, listed in further detail in table 1, are federal and state grants, PFCs airport and special facility bonds, and airport-generated income. In 1996, U.S. airports raised an estimated $7 billion from these sources.
How are private airports funded?
Privatized airports fund their operations through charges on passengers, airlines, advertising, and returns from airport retail and parking concessions.
How are new airports funded?
Airport projects are generally funded through a passenger facility charge on airplane tickets. Airlines oppose raising those fees. U.S. President Joe Biden as vice president in 2014 famously compared New York’s LaGuardia Airport to “some third-world country.”
What is the largest source of funding for capital improvement projects at airports?
There are five major sources of airport capital development funding: the federal Airport Improvement Program (AIP); local passenger facility charges (PFCs) imposed pursuant to federal law; tax-exempt bonds; state and local grants; and airport operating revenue from tenant lease and other revenue-generating activities …
What is the most revenue of the airports from non aeronautical charge?
Retail concessions
Retail concessions remain the leading source of non-aeronautical revenue for airports, representing 28 per cent of non-aeronautical revenue. Car parking revenue and property revenue/rent follow retail concessions as the secondary sources of revenue at 20 per cent and 18 per cent respectively.
How do airports increase non-aeronautical revenue?
Retail concessions remain the leading source of non-aeronautical revenue for airports, representing 28 per cent of non-aeronautical revenue. Car parking revenue and property revenue/rent follow retail concessions as the secondary sources of revenue at 20 per cent and 18 per cent respectively.
What is aeronautical revenue airport?
aeronautical revenue means revenue from all regulated charges levied at the Airport i.e., Landing Fees, Parking and Housing Fees, PSF (Facilitation) and User Department fees.
What do airlines pay to airports?
Airlines act as airport tenants, paying rent for counter and gate space, training facilities, storage facilities, hangars, offices, and maintenance facilities. They additionally pay for landing and parking fees, and to hold a lease on the ticket counter and gate space to occupy an exclusive area.
Who owns America’s airports?
All but one U.S. commercial airport are owned and operated by public entities, including local, regional or state authorities with the power to issue bonds to finance some of their capital needs.
Are airports funded by taxes?
Airport taxes are charged to fund the construction, maintenance, and administration of airports and airway systems. For this reason, the Internal Revenue Service (IRS) describes these taxes as user fees because the funds generated do not flow back to the general treasury.
How much money do airports make a year?
According to International Airport Review, as of March 2019, global airport revenues had grown by 6.2%, to $172.2 billion U.S. dollars.
What are other airport revenue sources that are non aeronautical related?
Non-aeronautical revenue—airport revenue from sources other than airlines—typically includes retail concessions,1 car parking, and property and real estate.
How do airports generate revenue?
How Do Airports Generate Revenue? Aviation is big business, with global airport revenues hitting $131 billion in 2013, a 5.5% increase over the previous year, Airports Council International (ACI) reported in 2015. That income can be divided into two components: aeronautical and non-aeronautical.
What is the largest source of non-aeronautical revenue for airports?
Ground transportation includes taxis, limousines, shuttles and buses that transport airline passengers. At 19.8%, rental car-related fees represented the next largest segment of non-aeronautical revenue for U.S. airports, totaling $1.6 billion.
What is aeronautical revenue?
Aeronautical revenue comprises the majority of airport income, and includes airline terminal space rentals, airline landing fees, and usage fees for terminals, gates, services and passenger counts. U.S. airports generated about $10 billion in aeronautical revenue in 2013, or about 55% of total operating revenue,…
How much do airports make on average per passenger?
The ACI report found that airports generated $11.88 in aeronautical revenue per passenger. In aeronautical revenue, passenger-based charges are trending upward, according to Airport World. Airports are increasingly focusing on non-aeronautical revenue to deal with the unpredictability of the airline business cycle.