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Almost three quarters of regional airports lost money in 2024-25, according to an updated report from the Australian Airports Association (AAA).
In the final Regional Airports Financial Sustainability Survey 2026, commissioned by the AAA and Regional Capitals Australia and conducted by ACIL Allen, 73 per cent of the 41 airports surveyed reported a loss for the 2025 financial year.
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The median loss was $519,000, more than double the $192,000 cited in the interim report handed down in March.
“The report also found 67 per cent of surveyed airports had deferred or delayed capital investment, while 85 per cent reported limited ability to invest in service-enabling infrastructure,” the AAA said.
The airports surveyed saw more than 7.2 million passenger movements and more than 290,000 aircraft landings in 2024-25, with every respondent supporting at least one emergency or essential service, and only half charging fees for these services.
“Regional airports enable emergency medical flights, emergency response, tourism, freight, business travel and local jobs,” said AAA CEO Simon Westaway.
“Many are doing so while operating at a loss, with councils, ratepayers and airport operators effectively picking up the tab to keep regional Australia connected. Governments need to be part of the solution to ensure this network doesn’t fail in the future.
“We need a sustainable policy framework that recognises regional airports as essential public infrastructure and supports the long-term viability of regional aviation by ensuring funding models reflect the critical services provided.”
Capital grants for runway, pavement and lighting infrastructure were reported as the number one policy priority, and the Federal Government recently announced another $15 million in grant funding to regional airports for essential works between $20,000 and $5 million.
“In regional Australia where aircraft can double as the local postie, the shopping cart or the ambulance, having safe, secure and modern facilities aren’t optional, they’re essential,” said Transport Minister Catherine King earlier this month.
“By funding regional airport upgrades, we can improve the safety of passengers, aircraft and freight, and open the door for regional communities to domestic and global markets.
“We’ve already made this possible with over 200 essential projects all over Australia so far under this program, and I look forward to adding more to the list.”
The announcement followed the recent grants awarded to 34 regional and remote airports, mostly council-run, from a $4.8 million Commonwealth fund to help airports affected by Rex’s administration.
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