ABSTRACT
This chapter considers the economics of the airport industry. The modern-day commercial and business pressures being placed on most airports mean that a thorough understanding of the economics of airports is now, more than ever before, a fundamental prerequisite for all airport managers. The chapter begins by looking at profi t levels within the industry and describing the revenue and cost structures. It goes on to discuss some of the key factors that infl uence the economics of airports. This leads to a discussion of how economic performance can be measured and the alternative methods currently being used to benchmark airport performance.
