Airports Council International – North America (ACI-NA) has released two comprehensive new reports analyzing U.S. airport infrastructure needs as well as the airport industry’s impact on the national economy.
The first report, “Modern Airports for a Stronger America: Unlocking Opportunities to Meet Soaring Demand,” estimates that U.S. airports need at least $173.9 billion over the next five years to fund necessary airport renovation, expansion and maintenance projects — a 15.1% increase over ACI-NA’s previous projections for 2023-2027. The report goes on to note that the Federal Aviation Administration (FAA) has identified 27 airports currently constrained in runway capacity or at risk of becoming constrained by 2033. The report goes on to note that large hub airports, which account for 73.5% of all enplanements, total $20.6 billion in capital needs per year, while medium hub airports, which account for 16.7% percent of all enplanements, total $6 billion in capital needs per year and small hub airports, which account for 9.1% of all enplanements, total $2.7 billion per year. Non-hub airports, which account for 3% percent of all enplanements, total $1.6 billion in capital needs per year.
ACI-NA’s report identifies the rise in capital improvement costs as a result of post-pandemic construction cost inflation, an increasing complexity of airport infrastructure projects and a backlog of infrastructure projects due to funding constraints. The report goes on to state that some federal policies limiting fees such as the Passenger Facility Charge (PFC) curtail airport funding for critical infrastructure projects while suggesting that other federal programs under the Infrastructure Investment and Jobs Act (IIJA) and FAA Authorization Act of 2024 have injected a combined total of approximately $7.4 billion annually into airport improvement programs, though some of these grants are scheduled to end in 2026. ACI-NA’s report argues that preserving the tax-exempt status of municipal bonds and private activity bonds (PABs) significantly reduces airports’ reliance on debt financing for infrastructure projects and that increasing PFC caps to reflect inflation would increase its purchasing power for infrastructure projects: “The $4.50 PFC set in year 2001 should be $10.05 and is only worth $2.05 in 2025. Its value will continue to be eroded if no adjustment is made.” The report additionally argues that the application process for federal grants and permission to charge PFCs should be streamlined to more efficiently support infrastructure project funding.
The report also cites several successful examples of airports who have transformed their facilities through infrastructure projects, including Syracuse Hancock International Airport (SYR), Cincinnati/Northern Kentucky International Airport (CVG), Los Angeles International Airport (LAX), Gerald R. Ford International Airport (GRR), Reno–Tahoe International Airport (RNO), Louis Armstrong New Orleans International Airport (MSY), Dallas Fort Worth International Airport (DFW), Raleigh-Durham International Airport (RDU) and San Antonio International Airport (SAT). These airports have modernized their aging infrastructure, demonstrating that updating airport facilities is critical to the lifeblood of the aviation industry — which, per ACI-NA’s second report, “The Economic Impact of U.S. Commercial Service Airports in 2024”, generates $1.8 trillion in annual economic output, supports over 12.8 million jobs and provides $619 billion in annual payroll to workers.
“These reports demonstrate the significant impact that America’s commercial service airports have on our local communities and why it is imperative to continue funding airport infrastructure projects,” said ACI-NA president and CEO Kevin M. Burke. “America’s airports are integral to communities across the country, serving as engines of economic growth and supporting jobs. This massive economic impact underscores the need for added investment to modernize our airports’ infrastructure to address the increase in passenger traffic in the coming years. We stand ready to work with Congress to deliver reforms to ensure critical airport infrastructure is maintained and modernized.”
