Making Money At Airports: Strategies For Travelers And Entrepreneurs

Airports make money through aeronautical revenue, such as landing and parking fees, as well as non-aeronautical revenue, like retail. The revenue that an airport earns is generally categorised as either aeronautical or non-aeronautical/commercial. The fees that airports charge on the aeronautical side of things often correspond strongly to the size of the aircraft being used by the airlines in question. For example, Heathrow Airport charges an average of $9,500 for each landing plane, with larger planes paying higher fees that cover runway time, gate space, and check-in area.

Landing and parking fees

Airports make money through aeronautical revenue, such as landing and parking fees. Landing fees are charged to airlines every time a plane lands or takes off from the airport. The price varies depending on the size of the plane, with larger planes paying higher fees that cover runway time, gate space, and check-in area. For example, a small 76-passenger Bombardier Dash 8 may pay just $999, while a Boeing 747 will be charged $11,600. Departing aircraft are charged again based on the number of passengers and their destination.

Parking fees are also charged to airlines for the use of airport space. These fees often correspond to the size of the aircraft, with larger planes requiring more space and thus incurring higher parking charges. In addition to landing and parking fees, airports may also generate revenue through other aeronautical sources, such as charging for the use of airport facilities and services. This includes fees for baggage handling, cargo loading and unloading, and aircraft maintenance.

The revenue generated from landing and parking fees is an important source of income for airports, helping to cover the costs of operating and maintaining the airport facilities. It also contributes to the overall profitability of the airport, allowing for further development and expansion. By charging fees based on aircraft size, airports can ensure that larger planes, which require more resources and space, contribute proportionally to the airport's revenue stream.

While landing and parking fees are a significant source of aeronautical revenue, airports also generate income through non-aeronautical sources. This includes commercial revenue from parking garages, car rentals, restaurants, shops, hotels, and lounges located on airport premises. By diversifying their revenue streams, airports can reduce their reliance on aeronautical fees and provide additional services and conveniences for passengers. Ultimately, the money generated through landing and parking fees, as well as other aeronautical and non-aeronautical sources, contributes to the overall financial health and sustainability of airports.

Commercial revenue from non-aeronautical companies

Airports can generate revenue through aeronautical sources, such as landing and parking fees, as well as non-aeronautical sources, like retail. Commercial revenue from non-aeronautical companies is an important part of keeping airports profitable. Airports can charge non-aeronautical companies, such as parking garages, car rentals, restaurants, shops, hotels, and lounges, for their use of space on the airport premises. The fees charged by airports often correspond to the size of the aircraft being used by the airlines in question. For example, a Boeing 747 will be charged $11,600 to land at Heathrow Airport, while a smaller 76-passenger Bombardier Dash 8 will pay just $999. Airports have evolved to become like small cities, with a wide range of amenities and services available to passengers. Ultimately, all of the money generated by airports comes from passengers, even if they don't directly pay for most airport services. Ticket prices factor in the costs that carriers must pay to make use of an airport's facilities.

Ticket prices

In addition to aeronautical revenue, airports also generate income from non-aeronautical sources, such as parking garages, car rentals, restaurants, shops, hotels, and lounges. This is known as commercial revenue. The cost to operate an airport in 2020 was about $13.55 per person, although this varies based on size and location.

Government investment

Airports make money through aeronautical revenue, such as landing and parking fees, as well as with non-aeronautical sources, like retail. Many governments invest heavily in airports through infrastructure expenditures. The revenue that a given airport earns is generally categorised as either aeronautical or non-aeronautical/commercial. The term 'aeronautical revenue' concerns money that airports make directly from airlines and their passengers by charging for the use of the airport space itself. The fees that airports charge on the aeronautical side of things often correspond strongly to the size of the aircraft being used by the airlines in question. For example, a small 76-passenger Bombardier Dash 8 will pay just $999, while a Boeing 747 will be charged $11,600.

Airport owners also have a lucrative business on their hands when it comes to slots. These are important at congested, slot-controlled airports, like London Heathrow. Here, the limited number of slots can cause their prices to reach tens of millions of dollars. Airports are almost always owned by federal, city or county governments or by a regional airport authority that’s part of the local government.

Size of the airport

The size of an airport plays a crucial role in determining its revenue streams and overall profitability. Airports generate revenue through aeronautical and non-aeronautical sources. Aeronautical revenue refers to fees charged to airlines and passengers for using the airport's facilities, such as landing and parking fees. These fees are often based on the size of the aircraft, with larger planes paying higher fees to cover runway time, gate space, and check-in areas. For example, a Boeing 747 is charged $11,600 to land at Heathrow Airport, while a smaller Bombardier Dash 8 pays only $999.

The size of an airport also impacts its ability to accommodate commercial activities and generate non-aeronautical revenue. Larger airports, often referred to as "small cities", have the space to include a wide range of amenities and services, such as restaurants, hotels, shops, and lounges. By leasing space to these non-aeronautical companies, airports can generate significant income. The availability of slots, or the limited number of take-off and landing permissions, is another lucrative business for airport owners, especially at congested airports like Heathrow. The demand for these slots can drive their prices up to tens of millions of dollars.

The cost of operating an airport is influenced by its size, with larger airports incurring higher expenses. According to U.S. Global Investor, the cost to operate an airport in 2020 was approximately $13.55 per person, varying based on size and location. Despite being owned by governments or regional airport authorities, airports aim to be profitable or at least self-sustaining. Ultimately, the revenue generated by airports comes from passengers, as ticket prices include the costs that carriers must pay to utilise the airport's facilities.

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