U.S. AIRPORTS FACE $100 BILLION IN INFRASTRUCTURE NEEDS TO HANDLE CONTINUED GROWTH IN PASSENGER AND CARGO VOLUMES, NEW STUDY FINDS

(Los Angeles, California – March 9, 2017) A new national study of airport infrastructure needs found that U.S. airports face nearly $100 billion in infrastructure needs over the next five years to accommodate growth in passenger and cargo activity, rehabilitate existing facilities, and support aircraft innovation.

The study of Los Angeles International Airport (LAX) and 99 other U.S. airports was conducted by Airports Council International – North America (ACI-NA) and focused on the vast demands facing airport operators as rising passenger and cargo volumes strain airport resources.  

“It was important for LAX to participate in this study because it points out the long-term needs of our airport and others across the nation,” said Los Angeles World Airports (LAWA) Chief Executive Officer Deborah Flint. “Airports of all sizes combined, have an investment need of $20 billion annually for improvements to modernize aging airfields and terminals, and relieve congestion and delays – all of which will significantly improve the passenger experience.”

The study, Airport Infrastructure Needs: 2017 – 2021, was released earlier this week in Washington, D.C.

“In recent months, President Donald J. Trump and policy makers on both sides of the aisle have become outspoken advocates for America’s airports and the state of airport infrastructure,” said ACI-NA President and CEO Kevin M. Burke. “Our airports are powerful engines of economic growth and job creation for local communities across the United States.  At the same time, America’s airports have significant infrastructure needs that must be addressed to remain competitive in the global aviation system and support our economy. This study is an important tool in educating policy makers about the real and significant infrastructure challenges America’s airports face.” 

At airports across the United States, terminal projects represent 54.1 percent of overall airport infrastructure needs.  Landside projects represent 24.7 percent of total needs and airside projects represent 21.1 percent of total needs.

LAX is currently in the midst of a $14 billion modernization program to improve the guest experience, including major terminal renovations, a new Midfield Satellite Concourse and the proposed Landside Access Modernization Program, which would help relieve congestion in the Central Terminal Area by building a Consolidated Rent-A-Car Center and 2.25-mile Automated People Mover. Many of these important projects are included in the ACI-NA infrastructure needs study.

Large hub airports similar to LAX, which handle 72.6 percent of all enplanements, account for $60.4 billion of total airport infrastructure needs.  Large hub airports reported an increase of 50.6 percent in infrastructure needs from 2015.  Terminal projects represent 59.6 percent of large hub airport infrastructure needs.  Landside projects represent 24.5 percent and airside projects represent 16 percent of large hub airport infrastructure needs.

Airport Infrastructure Needs: 2017-2012 is available on the ACI-NA website. 

About Los Angeles International Airport (LAX)

           LAX is the seventh busiest airport in the world and second in the United States.  LAX served more than 80.9 million passengers in 2016.  LAX offers 742 daily nonstop flights to 101 cities in the U.S. and 1,280 weekly nonstop flights to 77 cities in 42 countries on 64 commercial air carriers.  LAX ranks 14th in the world and fifth in the U.S. in air cargo tonnage processed, with more than 2.2 million tons of air cargo valued at over $101.4 billion.  LAX handled 697,138 operations (landings and takeoffs) in 2016. 

An economic study based on 2014 operations reported LAX generated 620,610 jobs in Southern California with labor income of $37.3 billion and economic output (business revenues) of more than $126.6 billion.  This activity added $6.2 billion to local and state revenues and $8.7 billion in federal tax revenues.  The study also reported that LAX’s ongoing capital-improvement program creates an additional 121,640 annual jobs with labor income of $7.6 billion and economic output of $20.3 billion, $966 million in state and local taxes, and $1.6 billion in federal tax revenues.

            LAX is part of a system of two Southern California airports – along with Van Nuys general aviation – that are owned and operated by Los Angeles World Airports, a proprietary department of the City of Los Angeles that receives no funding from the City’s general fund.

For more information about LAX, follow on Twitter @flyLAXAirport, on Facebook at www.facebook.com/LAInternationalAirport , and on YouTube at www.YouTube.com/laxairport1 .  Information about LAX’s ongoing multi-billion-dollar LAX Modernization Program, as well as tips and shortcuts to help navigate LAX during construction

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