Airport Operations

The Airport Operations industry has grown steadily over the next five years, thanks to improved economic conditions that have increased demand for airport services.

Domestic and foreign customers increased travel demand has boosted flight activity and raised revenue through passenger charges and aircraft support facilities while rising per capita disposable income has allowed consumers to spend more on duty-free shopping stores, car rentals, and other nonaeronautical industry services.

However, business expansion has been hampered by infrastructure limitations, which have resulted in congestion and other inefficiencies at many major airports. Furthermore, demand has nearly ceased due to the COVID-19 pandemic and subsequent reaction protocols.

Revenue for the Airport Operations sector is forecast to fall an annualized 11.2 percent to $4.8 billion over the five years to 2020, driven by a 46.5 percent reduction in 2020 alone.

The Airport Operations industry has grown for the majority of the next five years, fuelled by high passenger traffic and rising demand from domestic airlines. Furthermore, improving economic conditions in the United States has resulted in increasing amounts of disposable income per household, creating substantial revenue for the industry’s retail and hospitality operations.

However, at the beginning of 2020, the COVID-19 (coronavirus) pandemic prompted a major decrease in travel due to public concerns and expanded travel restrictions. As a result of people traveling less after the pandemic and airlines cutting flights due to declining demand, industry income is forecast to fall 46.5 percent in 2020 alone.

Despite positive economic metrics for the majority of the time, the sector has declined at an average annualized rate of 11.2 percent to $4.8 billion over the five years to 2020.

The Airport Operations industry is expected to re-expand over the next five years, aided by improving US economic conditions and increased travel activity. Returning to the skies after the COVID-19 (coronavirus) pandemic, particularly with the prospect of a vaccine and more treatment options.

Around the same time, federal government-sponsored airport maintenance schemes are planned to continue supplying airports with funds to update facilities, increase protection, and flexibility, allowing these operators to improve operational performance and accommodate larger numbers of passengers.

Despite this anticipated investment, capacity constraints are expected to restrict industry revenue growth in the coming years, though robust demand from the domestic airline industry (Research report 48111b) is expected to hold revenue on a positive trajectory.

For the next five years, market income is forecast to grow at an annualized rate of 17.4 percent to $10.7 billion. Despite facing a sharp downturn in 2020, the Airport Operations industry is expected to rebound quickly from the pandemic in the first half of the forecast period.

Businesses in this sector run regional, state, or civil airports or flying fields.

Operators that provide aircraft parking, air traffic control facilities, baggage handling services, and other related items are also included in the sector.

This sector excludes fuel wholesale and airport janitorial facilities, while the Aircraft Servicing, Repair, and Overhaul industry includes the majority of aircraft repair and maintenance services.