Table of Contents
What are the sources of airport revenue?
Presence of commercial air service and/or air cargo service opens the airport up to revenues from the following activities:
- Passenger airline hangar and terminal facility rents and leases.
- In-terminal concessions and rental car leases.
- Parking revenues.
- Cargo airline hangar and sorting facility rents and leases.
- Advertising.
Do airports generate income?
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.
How do small airports make money?
The reason that most facilities are so basic, however, is simple: money. Margins on operating such airports are varied, but thin. Owners can draw rents from flight schools, airport brokerages, and cargo companies that set up onsite, and as with commercial airports, landing and parking fees are levied on planes.
What is the largest source of revenue in the terminal area for most airports?
In 2020, aeronautical revenue continued to be the most important source of income for airports, representing 47.8% of the total (down 6.
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.
Which source of revenue is commonly the largest single source of airport revenue at busy small hub and larger commercial service airports?
7.2 Aircraft Landing Fees Traditionally, the single most important source of revenue for most airports has been the landing fee charged to operators of aircraft.
Is airport a good investment?
Airports form a core part of Magellan’s definition of infrastructure and have, over time, delivered robust financial performance and generated healthy returns for investors. We believe that airports remain a global growth sector and offer an attractive balance of regulated and competitive earnings potential.
How do you increase non-aeronautical revenue at airport?
Enabling increase in non-aero revenue requires adoption of the right technologies and tools. Contract Renewal & Negotiation: Assessment of store performance based on metrics like sales/PAX, sales / sqm to help decide whether to renew the contract or not.
What are non-aeronautical activities at airports?
The typical non-aeronautical activities pursued by most airports include retail concessions and duty-free, car parking and car rentals, food and beverage, advertising, and real estate rentals.
What is airport Master Plan?
An airport master plan represents the airport’s blueprint for long-term development. A few of the goals of a master plan are: • To provide a graphic representation of existing airport features, future airport development and anticipated land use.
How can non-aeronautical revenue be increased?
Boosting non-aeronautical revenues
- Non-aeronautical revenue – an under-valued potential.
- Revamping retail.
- Making every minute count.
- Tapping into food and beverage.
- Data-driven insight will drive commercial innovation.
- About the author.
Is there an airport ETF?
JETS is the best (and only) airline ETF for Q2 2022 An airline exchange-traded fund (ETF) can provide diversified exposure to the air travel industry, including aircraft manufacturers, airline operators, airports, and terminal services.
How do you value airports?
Discounted cash flow analysis. While transaction multiples provide useful valuation benchmarks, typically the discounted cash flow (“DCF”) valuation methodology is used as the primary approach to value airports. This is because airports generally have long-term projections that offer cash flow visibility.
What is the most efficient airport design?
These are the most efficient airports in the US and around the globe. A new study from the Air Transport Research Society ranked 206 airports on efficiency. The world’s most efficient airport is Hartsfield-Jackson Atlanta International Airport in Georgia. Atlanta’s airport has won the award 14 years in a row.
What is the most important factor in making an airport?
6.1. 2 Recommendation. While cost, access, engineering, and construction concerns are important, the most critical evaluation factors for siting an airport include airspace and aviation requirements, and especially environmental impacts related to aircraft operations.
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 can we increase non-aeronautical revenue in airport?
How much non-aeronautical revenue do airports generate?
For each passenger, airports generated $8.14 in non-aeronautical revenue, which includes a variety of income sources. Let’s take a closer look at some of these revenue streams.
What are the sources of income for an airport?
There are two basic sources of income for an airport: one is the commercial activity and the other type is based on aeronautical and other revenue. Internationally about 40% of the airport revenue comes from commercial activities, while the bigger chunk of the pie belongs to aeronautical and other revenue.
What are the two components of airport revenue?
That income can be divided into two components: aeronautical and non-aeronautical. 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.
What are my nonprofit’s funding sources?
Another funding source your nonprofit can consider is selling goods and/or services. This funding source is subject to many regulations by the IRS. Large, institutional organizations are more likely to benefit from fees and sales of products; while smaller charities depend on this type of revenue to a much lesser extent.