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Australian Airports Association publishes report highlighting dire financial reality of country’s regional airports
March 19th 2026
The latest report published by the Australian Airports Association (AAA) shows the country’s regional airports are operating under significant financial pressure, with the typical regional airport losing around AU$200,000 (US$141,000) a year while working to keep communities connected. Read More » A new Regional Airports Financial Sustainability Survey 2026, commissioned by the AAA in collaboration with Regional Capitals Australia and conducted by ACIL Allen, received responses from 41 regional airports across Australia. Among the 22 airports that provided detailed financial data, the median financial result was a loss of AU$192,000 in FY2024–25, with nearly 60% operating at a deficit. Losses ranged from around AU$100,000 to the millions, underscoring the significant and varied financial pressures across regional airports, the AAA said. The survey also found 23 airports had been forced to defer capital upgrades due to financial constraints. “What this report shows is that many regional airports are operating at a loss - often supported by local councils and ratepayers - simply to keep their communities connected,” AAA CEO Simon Westaway said. He stressed the importance of the regional airports to the local communities: “These airports are essential infrastructure supporting healthcare access, tourism, emergency services, and regional economies.” Westaway said the Productivity Commission’s inquiry into regional airfares highlights the structural challenges facing regional aviation markets. “Regional aviation operates in very thin markets, where passenger volumes are small, and airline capacity decisions largely sit outside the airport’s control. These findings also reinforce the need for a permanent and sustainable funding mechanism to support regional airport infrastructure and ensure regional communities remain connected. Encouraging sustainable airline competition and new entrants is one of the most effective ways to put downward pressure on airfares over the long term.” Westaway cautioned that global aviation volatility was also creating new pressures across the sector. “The ongoing conflict in the Middle East is creating uncertainty across global aviation markets, particularly through higher jet fuel prices and potential supply disruptions. For regional airports and the communities they serve, this is a dynamic situation we’re watching closely, because any sustained increase in fuel costs or disruption to supply can quickly flow through to airline operations and place further pressure on already fragile regional air services,” he said.
