The economic impact of the aviation or airline industry is substantial and multifaceted, contributing significantly to global and national economies through direct, indirect, and catalytic effects.
Global Economic Impact
- The aviation industry supports about $4.1 trillion, or roughly 3.9% of the world's GDP, which is comparable to the GDP of a large country like Saudi Arabia and accounts for about 1% of global GDP in 2023
- Globally, aviation enables around $3.5 trillion in GDP and would rank as the 17th largest economy if it were a country
- The industry directly and indirectly supports millions of jobs worldwide, with estimates of around 27.7 million jobs linked to air transport activities, including direct employment in airlines and airports, as well as induced and catalytic employment in related sectors
Economic Contributions in the U.S.
- In the United States, civil aviation contributed about 2.3% of GDP in 2020, with economic activity totaling approximately $0.9 trillion and supporting 4.9 million jobs
- Before the COVID-19 pandemic, in 2019, U.S. civil aviation accounted for about 5% of GDP, including direct activities like airline operations and manufacturing, and catalytic activities such as tourism and business travel
- The pandemic caused a sharp decline in aviation's economic contribution and employment, but recovery has been underway, with civil aviation’s GDP contribution rising from 2.3% in 2020 to 4.0% in 2022
European Aviation Impact
- European airports contributed approximately €505 billion in GDP and supported 8.1 million jobs in 2019, representing about 2.8% of the European Economic Area’s economy and 3.6% of its workforce
- The economic impact includes direct, indirect, induced, and tourism-related effects, highlighting aviation’s role in regional economic development and connectivity
Key Economic Benefits of Aviation
- Job Creation: Aviation directly employs millions (pilots, crew, ground staff) and indirectly supports jobs in tourism, hospitality, manufacturing, and supply chains
- Trade Facilitation: Air cargo enables rapid global trade, supporting businesses by transporting perishable and high-value goods efficiently
- Tourism Growth: Air travel boosts tourism, which stimulates local economies through spending on accommodation, dining, and attractions
- Connectivity and Business: Aviation connects businesses globally, fostering economic resilience, innovation, and regional development by linking remote areas to markets
- Multiplier Effects: Every $100 of output by air transport generates an additional $325 in other industries, and every 100 jobs in air transport create 610 jobs elsewhere, illustrating strong multiplier effects on the economy
In summary, the aviation industry is a critical driver of economic growth, employment, trade, and connectivity worldwide. Its influence extends beyond direct airline and airport operations to catalyze broader economic activity and social development across regions and countries
