How is an airport financed?

AIP grants are just one source of funding that airports use to fund capital investment. Other funding sources include passenger facility charges (PFCs), state and local grants, bond proceeds, airport-generated funds (landing and terminal fees, parking, and concession revenues), and tenant and third-party financing.



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The law provides $1 billion annually for five years for Airport Terminal Program grants. In total, the Bipartisan Infrastructure Law provided a historic $25 billion to modernize our country's airport infrastructure. Learn more at www.faa.gov/bil.

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What are airport charges? Airport charges are paid by airlines for the use of airport facilities. They include aircraft landing, freight and other charges related to the use of airport infrastructure such as runways and passenger terminals.

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The company makes money from charging landing fees and departing passenger levies to airlines, and from ancillary operations within those airports such as retail, car parking and property.

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Landing fees are the most widespread type of airport fee, and they're exactly what they sound like – A fee for landing at an airport. They're common at larger airports, but less so at smaller ones. These fees are usually calculated based on the weight of your aircraft, so the bigger your bird, the more you'll pay.

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In the US, almost all major airports are government-owned – usually by the local federal or city government. In New York, for example, JFK and La Guardia airports are owned by the City of New York. Newark is owned by the cities of Newark and Elizabeth.

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Hartsfield–Jackson Atlanta International Airport - operating revenue by type 2022. In the 2022 fiscal year, the Hartsfield–Jackson Atlanta International Airport generated 181 million U.S. dollars in landing fees revenue, making it the most lucrative segment for the airport.

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The airport is owned and operated by Heathrow Airport Holdings. In 2022, it was the second-busiest airport in the world by international passenger traffic and the busiest airport in Europe as per March 2023. It is also the airport with the world's most international connections as of 2023.

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Regional airports can be fully privately-owned (e.g. Edinburgh, Glasgow, Southampton, Leeds Bradford), a mix of public and private ownership, whereby an airport is owned by both local authorities and private investors (e.g. Birmingham, Manchester and Newcastle), or fully publicly-owned (e.g. Scottish island airports, . ...

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Duty-free stores are an enticing perk of international travel. These retail businesses sell merchandise that is exempt from duties and taxes with the understanding they will be taken out of the country for use. Many popular duty-free items found in airport shops include liquor, chocolate, and perfume.

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Airlines pay a fee to fly over other countries. They're called overflight fees. Just as countries have rights to their land, they have rights to the air above them. Most countries rent that airspace to foreign airlines, allowing them to fly through it.

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In the US, almost all major airports are government-owned – usually by the local federal or city government. In New York, for example, JFK and La Guardia airports are owned by the City of New York. Newark is owned by the cities of Newark and Elizabeth.

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When the number of flights increases to a level that creates regular and significant flight delays, and infrastructure improvements to manage the capacity are not feasible in the near future, the airport may be declared a Level 3 airport by the FAA.

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