Economics & Energy

Economic Impact

In the summer of 2005, Pulitzer Prize winner Daniel Yergin observed, "Every day, the airline industry propels the economic takeoff of our nation. It is the great enabler, knitting together all corners of the country, facilitating the movement of people and goods that is the backbone of economic growth. It also firmly embeds us in that awesome process of globalization that is defining the 21st century."

Subsequently, ATA commissioned the Campbell-Hill Aviation GroupĀ to measure that "takeoff" at the state and congressional district levels. Campbell-Hill's analysis found that "the national economy is highly dependent on commercial aviation, which is directly or indirectly responsible for 5.8 percent of gross output, 5.0 percent of personal earnings and 8.8 percent of national employment." It also noted that commercial aviation ultimately drove $1.2 trillion in U.S. output (that's $3.4 billion per day, or $142 million per hour), $380 billion in earnings and 11.4 million jobs in 2004.

Commercial Aviation Sector's Impact on the U.S. Economy in 2004

Economic Impact Gross
Output
Personal
Earnings
Jobs
Direct $247.4 billion $72.5 billion 1.05 million
Direct + Indirect + Induced $1,246.9 billion $379.9 billion 11.39 million
Ratio of Total to Direct 5.0 5.2 10.8
Share of U.S.Total (%) 5.8 5.0 8.8

Source: The Campbell-Hill Aviation Group, Commercial Aviation and the American Economy, March 2006

Direct impacts include the following elements:

  • Commercial air transportation
  • Air couriers
  • Air transportation support
  • Flight training
  • Aircraft and parts manufacturing

Indirect impacts include the following elements:

  • Traveler accommodations
  • Food services and drinking places
  • Performing arts, museums and related activities
  • Recreation and entertainment
  • Travel arrangement and sightseeing services
  • Shopping
  • Transit and surface passenger transportation
  • Auto and other vehicle leasing

Other related studies of note include the following:

Last Modified: 6/7/2008

  help desk