How Airports Make Their Money (A Detailed Look Behind the Scenes)

There are many ways Airports make their money, though more opportunities exists based on the size of the airport, the town where the airport is located in, and the status of the airport- whether it flies international, local or regional. All of these, to a large extent determine how airports make their money.

Airports all over the world are like markets, they are always busy with people coming and going, planes landing and taking off, companies dispensing jet fuel, freight companies handling the cargoes and hotels or taxis being booked. The reality is that as these are happening, the various the airport authorities are generating serious revenue to keep the airport(s) afloat. These are the various ways airports generate the needed funds.

If you think airlines are the ones making all the money, well… that is not exactly true. Airports have their own ways of earning, and some of them might actually surprise you.

This blog post we will be giving you a detailed analysis of how airports make money in this modern day. It may interest you to know that airports all over the world do not depend solely again on collecting airport fees from airlines to keep the airports running.

1. Fees from Airlines

The first line of fee being collected by airports is the airline fee. This fee or dues is collected from airlines as their planes are either landing or taking off. These are called aeronautical revenues.

For instance, these fees or dues being collected ranges from passenger service charge, landing fees, and parking fees (when planes are parked for so long at an airport, the parking fees becomes so high). For example, a narrow plane or smaller plane is charged lower when compared to a widebody plane.

For instance, passenger service charges are also important as these charges are embedded in the price a passenger pays for his flight ticket. Funny enough, most passengers do not even know that their payments are part of the fees being used to maintain the airport- it is just that most airlines pass the bulk of such fees to them.

All over the world, airports are working towards depending less on airlines as a major source of revenue.

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2. Lock-up stores

As a frequent air traveler, I have observed how airports have shops lithered everywhere around it. For instance, there are shops that deal on luxury goods, and there are others that deal on daily needs of individuals.

These shops' structure are owned by the airport authorities, so they collect rents, and dues for the government. This is a huge avenue that government, generates revenue for the airport.

3. Food and Beverage Sales

Food is another big source of income. Things or commodities such as food are costly at airports all over the world.

If you ever get hungry and desire to eat within the airport premises you may likely empty your pockets just to fill your stomach. The reason why food or other edible commodities are costly is because of the high rent costs at the airport.

Airports earns through lease agreements and sometimes revenue sharing. So even that coffee you bought while waiting contributes to airport revenue.

And honestly, sometimes the prices are just… too much. But people still buy.

4. Parking Fees (A Silent Money Maker)

Parking is one of the most underrated income sources for airports.

Planes are not the only machines being parked at the airports, vehicles are also parked at airports all over the world. However, if you intend to park them for long, then you will have to go deep into your pocket.

In some airports, parking revenue can be as important as airline fees, which is quite surprising.

5. BillBoard Advertising

Those ads you see on the billboards in airports are huge revenue generating platforms for airports. People come in and out of the country and one of the first thing the notice are the billboards.

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6. Cargo and Freight Services

Airports are not meant for passengers alone, there are also, meant for cargo goods. Not all good are transported by sea as some are very fragile and need to be moved quickly, and therefore the airports become a place that these goods like drugs, food and other soft commodities are either imported or exported.

7. Inclusivity of Government

In the face of inclusivity that governments all over the world are known for, a government may decide to keep an airport running, not because the airport is profitable, but because it includes the people of the place included in government policy of ease of doing business and movement in persons too.

Reasons Why Airports Have Multiple Sources of Income

The Covid era thought a lot of companies such as airlines and organizations like airports deep lessons on not relying on a single source of income.

Also, the cost of jet fuel will always reflect ticket price. If the cost of traveling by air becomes expensive, most passengers will turn down the idea of traveling by air. When this happens, it becomes difficulty for airports to collect revenue from airlines as airlines may not have the passengers to fly.

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