Steer’s Analysis on the economic importance of UK airports

Steer, a global consultancy specialising in policy, economic, and commercial advice for the aviation sector, was commissioned by AirportsUK to assess and quantify the economic contributions of UK airports. Presented at the AirportsUK Annual Conference on 5 December 2024, this analysis, led by Peter Wiener and Martin Lavrilloux, highlighted the critical role airports play across regions and economic sectors of the UK.

Objective

The study sought to demonstrate the economic and social benefits of airports, contextualising their contributions amidst growing environmental considerations. It aimed to provide a comprehensive understanding of how airports impact the national economy and their significance to various industries.

Key findings

1. Overall contribution
   • UK airports underpin at least £159 billion of Gross Value Added (GVA), representing 6.4% of the national economy.
   • Over 982,000 jobs are supported directly and indirectly by airports.
2. Core airport activities
   • On-site activities generate £11 billion GVA and 145,000 jobs.
   • Including supply chain activities and employee spending, this impact grows to £27 billion GVA and 271,000 jobs.
3. Industries facilitated by airports
   • Airlines operating at UK airports contribute £26 billion GVA and 390,000 jobs.
   • Exports by Air: £96 billion in GVA is dependent on air freight exports, constituting 3.9% of the UK’s total GVA. Certain regions, such as the North East (8.4%), Wales (7.1%), and West Midlands (6.5%), are particularly reliant on air freight.
   • Business Aviation: Representing 7.5% of UK flights, 70% of business travellers reporting revenues over £1 million generated from their trips.
4. Wider benefits
   • Tourism: UK Airports underpin at least £8.2 billion of direct GVA and 285,000 direct jobs by facilitating inbound tourism in the country.
   • International Students: UK Airports underpin £2.4 billion GVA and 36,000 jobs through spending by international students, 74% of whom are based outside London.
   • Foreign Direct Investment: Airports are instrumental in supporting inward foreign direct investment (FDI), with at least £1.2 billion in net inward FDI annually underpinned by UK airports. For example, Birmingham Airport plays a vital role in driving economic growth in the West Midlands.

Conclusion

Steer’s analysis for AirportsUK underscores the indispensable economic and social contributions of UK airports. Beyond serving as transportation hubs, airports act as key enablers of trade, investment, and regional development. This study highlights the need for continued investment in airport infrastructure to sustain these benefits while addressing environmental challenges.

For further insights or inquiries, contact Peter Wiener or Martin Lavrilloux.