Airport Operations in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC I5220Revenue
$6.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
12,511
Businesses
713
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.Leading into the COVID-19 pandemic, rising inbound tourist numbers and strong growth in outbound international travel helped fuel the industry's expansion. Airfares were relatively low over the same period because of increased competition in the International Airlines industry. Growth in international travel benefited airport operators, as airports can charge higher fees per passenger and international airlines often outsource support services. However, revenue and profitability plummeted over the two years through 2020-21 when COVID-19 travel restrictions began severely restricting aircraft movements and passenger volumes. Limited domestic travel, rental income and airfreight movements partially supported revenue during this period. The gradual easing of many international and domestic border restrictions has returned some revenue growth over the past two years, including a 44.8% rise in 2022-23. Overall, revenue has fallen at an annualised 2.7% through the end of 2022-23, to $6.4 billion.A resurgence in international passengers will drive industry growth over the short term, as open borders and the diminishing risk of pandemic-related disruptions encourage international travel. However, the industry's short-term growth will likely be constrained, as high variable costs and labour shortages will slow airlines' return to full capacity. Revenue is set to rise at an annualised 4.7% through the end of 2027-28, to $8.0 billion, as airlines gradually ramp up to full capacity. Many capital city airports were operating close to capacity before the COVID-19 pandemic, so several began to invest in expansion projects to lay the foundations for future industry growth.
Trends and Insights
- Airport operators are dependent on passenger movements to generate revenue from aeronautical fees and other sources. This has caused revenue to plunge during the COVID-19 slump.
- Airports have heavily invested in new and improved rental spaces in response to expanding demand from the retail sector. This has contributed to increases in revenue generated from rent and property.
- Geographical isolation heightens the need for more airports. That’s why airport operators in Queensland and Western Australia are overrepresented in comparison to their share of the population.
- 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.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 2.7 % over the past five years, to reach an estimated $6.4bn in 2023.
Trends and Insights
The COVID-19 pandemic has been negatively affecting the wider aviation sector
- Pandemic-related border closures and travel restrictions caused revenue for many airport operators to plummet, particularly for large capital city airports.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Airport operators face a bumpy road to recovery
- While the likelihood of new COVID-19 travel restrictions continues to diminish, the industry's road to a full recovery is going to be bumpy.
Biggest companies in the Airport Operations in Australia
| Company | Market Share (%)
2023 | Revenue ($m)
2023 |
|---|---|---|
Sydney Aviation Alliance | 1,374.2 | |
Airservices Australia | 937.0 | |
Melbourne Airport | 800.9 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
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 recovery of the airport aeronautics segment
- 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
Widen you 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
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. Car parking services provided by airport operators are excluded from the industry.
What's included in this industry?
Airport aeronauticsRent and propertyAir traffic control and navigationSupport servicesBaggage and cargo storageSpaceport operationsCompanies
Sydney Aviation AllianceAirservices AustraliaMelbourne AirportPurchase this report to view all 8 major companies in this industry.
Related Terms
CIVIL AVIATION SAFETY AUTHORITY (CASA)TAAATSGENERAL AVIATIONAPRONSLOT MANAGEMENTIndustry Code
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. This has caused revenue to plunge during the COVID-19 slu...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
Airports have heavily invested in new and improved rental spaces in response to expanding demand from the retail sector. This has contributed to increases in revenue generate...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
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
Geographical isolation heightens the need for more airports. That’s why airport operators in Queensland and Western Australia are overrepresented in comparison to their share...
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 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
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 2018-2023
- 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 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Sydney Aviation Alliance's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Airservices Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Melbourne Airport's performance by revenue, market share and profit margin from 2017 through 2023
- 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 government has provided substantial funding to Airservices Australia during the pandemic. This funding has been vital to the continued operations of Australia’s wider avi...
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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 margins have taken a dive in recent years. High and mounting fixed costs for airport operators squeezed profit margins amid poor demand con...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld 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 IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld 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 IBISWorld 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, IBISWorld’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 IBISWorld forecast its data?
IBISWorld’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.
IBISWorld 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.
Frequently Asked Questions
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 $6.4bn in 2024.
How many businesses are there in the Airport Operations in Australia industry in 2023?
There are 713 businesses in the Airport Operations industry in Australia, which has grown at a CAGR of 1.3 % between 2018 and 2023.
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 declining at a CAGR of 2.7 % between 2018 and 2023.
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.
