As air travel continues to surge and the aviation industry becomes ever more vital to global connectivity and economic growth, the challenges facing America’s airport infrastructure are becoming harder to ignore. From aging terminals to constrained gate capacity, airports are under strain as they work to meet today’s needs and prepare for tomorrow’s demands.
In a recent report on airport infrastructure needs, Airports Council International (ACI) North America highlights that airports support nearly 13 million jobs, generating $619 billion in annual payroll and producing an annual economic output of $1.8 trillion. This reflects a common truth: airports are more than transit hubs. They are visible, central parts of their communities. But they have become under-resourced over many years. ACI estimates that U.S. airports will require $174 billion of infrastructure investments in the next five years. For the long-term benefit of passengers and the aviation industry, airports must pursue efficiency-driven, capability-enhancing growth that is both financially sustainable and environmentally responsible. To do this, airport planners must embrace a highly strategic approach to infrastructure investment and modernization.
The most urgent need for airports is to expand system capacity to handle increased demand. This includes enlarging terminal space, adding gates, improving security checkpoints, and upgrading baggage handling systems. These enhancements are essential to accommodate rising passenger volumes and ensure smoother operations.
However, before embarking on costly expansion projects, airports must first use existing infrastructure to its maximum potential. This means optimizing gate utilization, streamlining passenger flows, and improving turnaround times. These efforts can delay the need for capital-intensive projects while supporting environmental goals by reducing congestion and emissions.
Funding gaps and the untapped potential of public-private partnerships
U.S. airports are predominantly public sector entities, which means they rely heavily on government grants and revenue bonds to fund infrastructure projects. Federal funding mechanisms such as the Airport Improvement Program (AIP), Passenger Facility Charges (PFCs), and the Infrastructure Investment and Jobs Act grants currently cover only about one-third of capital project costs. The remainder must be financed through airport revenue bonds, airport-generated revenues, and public-private partnerships (P3s).
While ACI North America continues to advocate for raising the PFC cap, resistance from airlines and lawmakers has slowed progress. In this context, P3s emerge as a powerful, underutilized tool to bridge the funding gap and accelerate project delivery. Successful examples include the redevelopment of LaGuardia Airport and John F. Kennedy International Airport in New York City, both of which demonstrate how private capital can be leveraged to modernize critical infrastructure quickly and efficiently.
There is no shortage of private capital. Infrastructure-focused investment funds are actively seeking stable, long-term opportunities. Airports, with their predictable, long-term revenue streams and low risk profiles, are an attractive investment proposition, particularly for the likes of public sector pension funds.
The cost of inaction: delays, disruptions, and economic drag
The consequences of outdated infrastructure are already visible. With little slack in the system, even minor incidents can cascade into widespread delays and disruptions. As demand for air travel continues to grow, driven by population increases and economic expansion, the sector is operating at or above capacity in many regions.
Without significant investment, airports will be hindered in their ability to support that economic growth. Moreover, airport resilience is increasingly being tested by external shocks, including information technology failures, air traffic control challenges, cyberattacks, and extreme weather events. A modern, well-resourced airport infrastructure is essential not only for efficiency, resilience, and sustainable growth, but also for national security and economic stability.
AI as a strategic enabler
The key for airports looking to modernize infrastructure is to embrace innovation. Technologies like artificial intelligence (AI) offer a transformative opportunity to enhance infrastructure performance without requiring full-scale rebuilds. By embedding AI into existing systems, airports can unlock new efficiencies and improve the passenger experience.
The foundation of AI success lies in a unified, intelligent data strategy. Airports must connect and govern operational data across gate management, baggage systems, passenger flows, and commercial operations. This breaks down silos and enables real-time visibility, which is critical for deploying AI effectively.
Once intelligent foundations are in place, airports can target high-impact areas such as aircraft turnaround, queue management, and predictive maintenance. For example, AI-driven solutions like Dynamic Call-to-Gate can optimize passenger movement, reduce delays, and improve retail revenue. Similarly, tools like Deep Turnaround use AI to monitor and predict turnaround performance, helping reduce last-minute gate changes, which are a leading cause of delays.
Advanced AI capabilities also allow airports to anticipate equipment failures, manage congestion, and dynamically allocate resources. These improvements not only enhance operational efficiency but also support sustainability goals by minimizing waste and energy use.
But technology alone is not enough. Airports must invest in upskilling their workforce and building trust in AI systems. Transparent deployment, clear accountability, and structured change management are essential to ensure that AI supports human judgment instead of replacing it.
Simulated training environments such as digital twins that create virtual replicas allow staff to practice responding to AI-generated insights in a controlled setting. This empowers teams to make informed decisions and fosters confidence in new tools. By involving employees in the AI journey, airports can build a culture of innovation and resilience.
A strategic opportunity for transformation
The aviation sector sits at the intersection of innovation and infrastructure. As experts, we cannot emphasize enough the importance of aligning infrastructure investment with broader strategic goals.
By leveraging AI, embracing public-private partnerships, maximizing existing assets, and evaluating community impact, airports can unlock long-term value—not just for passengers and airlines, but for the broader economy.
The path forward requires bold leadership and collaborative action. Airports that act now will be better positioned to thrive in the evolving landscape of global aviation.
