How US airports generate revenue: Fees from airlines, retail spaces, ground transport

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How US airports generate revenue: Fees from airlines, retail spaces, ground transport

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Simple Flying | Simple Flying

By Sky Industry News

Dec 28, 2024

Airports, often operating with thin margins, have developed several strategies to generate revenue. In the United States, where most airports are publicly owned and operated, this task is essential to fund expansion initiatives and prevent cash shortfalls.

One primary revenue stream comes from airlines that pay for using airport facilities. Airports charge airlines landing fees based on aircraft size and weight. For example, San Francisco International Airport (SFO) charges approximately $8-10 per thousand pounds of maximum approved takeoff weight. Parking fees also contribute significantly to an airport's income.

Additionally, ground transportation provides another significant source of revenue. Airports charge for parking in various lots and may operate or charge rideshare services like Lyft and Uber for access to dedicated lanes. Newark Liberty International Airport (EWR) operates an AirTrain service with fees embedded in passenger tickets via NJ Transit and Amtrak.

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Retail spaces within airports are lucrative as well. Airports lease space to restaurants, shops, and lounges, collecting rent and a portion of sales from these establishments. This model explains the high prices of goods at airports due to retailer markups covering airport fees.

In conclusion, U.S. airports rarely turn a profit but rely on diverse revenue streams to minimize losses while shifting the financial burden away from taxpayers onto travelers who directly benefit from their services.