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More than half of regional airports in Australia are losing money, with the median loss of around $192,000 for the 2025 financial year, according to a new report.
In its Regional Airports Financial Sustainability Survey 2026, conducted alongside Regional Capitals Australia (RCA), the Australian Airports Association (AAA) found losses from “around $100,000 into the millions”, with 23 airports forced to defer capital upgrades due to financial constraints.
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“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,” said AAA chief executive Simon Westaway.
“The typical regional airport is losing around $200,000 a year just to keep aircraft moving and runways open. These airports are essential infrastructure supporting healthcare access, tourism, emergency services and regional economies.”
“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.”
In its submission to the Productivity Commission’s inquiry into regional airfares, the AAA noted that regional airports have an average operating cost of $23.31 per passenger, higher than the average $14.30 per passenger at major metropolitan airports.
“While per passenger operating costs at regional airports are on average higher than the large metropolitan airports, airport charges to airlines are often suppressed as they are set well below that associated with cost recovery and commercial viability,” the submission reads.
“Local rate payer contributions are often needed to cover the airport’s annual operating deficit.”
According to RCA chair Josh Black, councils and ratepayers are “effectively subsidising infrastructure that regional communities rely on every day as an essential service”.
“Regional airports are much more than simply passenger terminals. Nine out of 10 support Royal Flying Doctor Service operations, and many also support emergency services, disaster response and search and rescue missions in their communities,” he said.
“People on some regional routes are paying more than 50 per cent extra for the same distance that metropolitan routes pay. This is a growing inequality in our aviation system, and it really needs to be addressed.”
The survey received responses from 41 airports around Australia, 22 of which provided detailed financial data.
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says:I fully accept the fact that no business can operate if it is losing about $200,000.00 P.A. nor should it be expected to do so! Unfortunately, everyone seems to be running scared of the true reason behind the overall losses and I am wondering who they are scared of offending and the potential repercussions. The financial period reporting system for any airport would/should identify where the problem is!!, – multiply the result for the total airports in the region and the rectification needs should become apparent.