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Airport Operations in Australia - Market Research Report (2014-2029)

Andrew Ledovskikh Andrew Ledovskikh Melbourne, Australia Last Updated: October 2024 ANZSIC I5220

Revenue

$7.2bn

2024-25

$7.2bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

13,613

Businesses

815

Wages

$X.Xbn

Airport Operations in Australia industry analysis

The Airport Operations industry features several dominant players, with most aircraft movements going through Australia's major airports in Sydney, Melbourne and Brisbane. Airport operators generate revenue by charging landing and terminal fees to domestic and international airlines. Airports also receive rental income from airlines and retail stores for space leased on their premises. Airservices Australia, the industry authority that controls Australian airspace, earns revenue on a per-aircraft basis. That's why the volume of aircraft movements and passengers carried strongly correlates with industry growth.

Trends and Insights

  • Airport operators are dependent on passenger movements to generate revenue from aeronautical fees and other sources. Revenue cratered amid international and state border closures due to reduced passenger movements, but the industry has mostly recovered in recent years.
  • Retail operators are a major source of revenue for airports. Airports operate similar to shopping malls, building retail spaces in terminals and renting them out to retailers. Rental payments from retailers accounts for close to one-quarter of industry revenue.
  • Geographic isolation heightens the need for more airports. That’s why airport operators in Queensland and Western Australia are over-represented in comparison to their population share.
  • Major airports are often regional monopolies and face little internal competition. Major airports that can accept international flights have a competitive edge over smaller airports.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 4.1 % over the past five years, to reach an estimated $7.2bn in 2024.

Trends and Insights

The pandemic caused mayhem in the industry, which is still trying to recover

  • Pandemic-related border closures and travel restrictions caused revenue for many airport operators to plummet, particularly for large capital city airports.
  • Additional trends and insights available with purchase
Airport Operations in Australia
Revenue (2014-2029)
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Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Industry revenue is set to slowly return to pre-pandemic levels

  • The industry has faced an interrupted recovery over the past few years. Weakening global economic conditions, along with a domestic cost-of-living crisis and drop in consumer sentiment, have slowed growth.

Biggest companies in the Airport Operations in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Sydney Aviation Alliance
1,473.5
Airservices Australia
1,082.2
Melbourne Airport
1,003.7

To view the market share and analysis for all 8 top companies in this industry, view purchase options.

Products & Services Segmentation

Airport Operations in Australia
Products & Services
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Industry revenue is measured across several distinct product and services lines, including Air traffic control and navigation, Airport aeronautics and Rent and property. Air traffic control and navigation is the largest segment of the Airport Operations in Australia.

Trends and Insights

Rising passenger numbers are crucial to the airport aeronautics segment’s recovery

  • Airport operators primarily derive aeronautics revenue from landing fees, passenger fees and aircraft parking charges. This segment also includes terminal charges for services like baggage handling, refuelling, aircraft ramp services and taxi services when performed by airport employees.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry companies primarily operate international, national or civil airports. Operations include services to air transport like airport terminals, runways, air traffic control, aerospace navigation and baggage handling.

What's included in this industry?

Airport aeronauticsRent and propertyAir traffic control and navigationSupport servicesBaggage and cargo storageSpaceport operations

Companies

Sydney Aviation AllianceAirservices AustraliaMelbourne Airport

Purchase this report to view all 8 major companies in this industry.

Related Terms

CIVIL AVIATION SAFETY AUTHORITY (CASA)TAAATSGENERAL AVIATIONAPRONSLOT MANAGEMENT

Industry Code

ANZSIC 2006

ANZSIC 5220 - Airport Operations in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Airport operators are dependent on passenger movements to generate revenue from aeronautical fees and other sources. Revenue cratered amid international and state border clos...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Retail operators are a major source of revenue for airports. Airports operate similar to shopping malls, building retail spaces in terminals and renting them out to retailers...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Geographic isolation heightens the need for more airports. That’s why airport operators in Queensland and Western Australia are over-represented in comparison to their popula...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Major airports are often regional monopolies and face little internal competition. Major airports that can accept international flights have a competitive edge over smaller a...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Several capital city airports have neared capacity in recent years. Many airports have been investing heavily in new infrastructure to ensure they can cater to growing demand...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Sydney Aviation Alliance's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Airservices Australia's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Melbourne Airport's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 5 additional companies

Detailed analysis

  • Description and key data for Sydney Aviation Alliance, and factors influencing its performance in the industry
  • Description and key data for Airservices Australia, and factors influencing its performance in the industry
  • Description and key data for Melbourne Airport, and factors influencing its performance in the industry
  • Description, key data and performance trends for 5 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The Federal Government provided substantial funding to Airservices Australia and airports during the pandemic. This funding has been vital to the continued operations of Aust...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The industry’s usually high profit nosedived into negativity in 2020-21 and 2021-22, when high and mounting fixed costs for airport operators squeezed profit amid poor demand ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Airport Operations industry in Australia in 2024?

The market size of the Airport Operations industry in Australia is $7.2bn in 2024.

How many businesses are there in the Airport Operations in Australia industry in 2024?

There are 815 businesses in the Airport Operations industry in Australia, which has grown at a CAGR of 2.1 % between 2019 and 2024.

Has the Airport Operations industry in Australia grown or declined over the past 5 years?

The market size of the Airport Operations industry in Australia has been growing at a CAGR of 4.1 % between 2019 and 2024.

What is the forecast growth of the Airport Operations industry in Australia over the next 5 years?

Over the next five years, the Airport Operations industry in Australia is expected to grow.

What are the biggest companies in the Airport Operations market in Australia?

The biggest companies operating in the Airport Operations market in Australia are Sydney Aviation Alliance, Airservices Australia and Melbourne Airport

What does the Airport Operations in Australia include?

Airport aeronautics and Rent and property are part of the Airport Operations industry.

Which companies have the highest market share in the Airport Operations in Australia?

The company holding the most market share in Australia is Sydney Aviation Alliance.

How competitive is the Airport Operations industry in Australia?

The level of competition is low and steady in the Airport Operations industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Aircraft Manufacturing and Repair Services in Australia
  • Petroleum Product Wholesaling in Australia
  • International Airlines in Australia
  • Domestic Airlines in Australia
  • Non-Scheduled Air Transport in Australia
  • Travel Agency and Tour Arrangement Services in Australia

International industries

  • Global Airport Operation
  • Airport Operations in the US
  • Airport Operations in New Zealand
  • Airports in the UK
  • Airports in Germany

View all industries in Australia

Methodology

How are Alfabank-Adres reports created?

Alfabank-Adres has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for Alfabank-Adres readers. Finally, each report is reviewed by one of Alfabank-Adres’s editors, who provide quality assurance to ensure accuracy and readability.

Alfabank-Adres relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do Alfabank-Adres analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, Alfabank-Adres’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does Alfabank-Adres forecast its data?

Alfabank-Adres’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

Alfabank-Adres prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.