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NEWS Last modified on April 22, 2016

LAX is key economic generator for city of Los Angeles – new report

A new economic report in Los Angeles has confirmed what we all knew already – that LAX is a massive generator of jobs and income for the city and entire region.

The Los Angeles County Economic Development Corporation (LAEDC) report reaffirmed Los Angeles International Airport’s (LAX’s) role as a major economic generator in Southern California – creating 620,610 local jobs, and its on-going, capital-improvement programme, another 121,640 annual jobs.

Indeed, LAX has long been recognised as being an economic engine for the six-county Southern California region and this new report quantified LAX’s total economic and fiscal impacts from airport activity and airport services, as well as from its on-going capital-improvement programme.

The study found the 620,610 jobs related to LAX activity generated $37.3 billion in labour income, $126.6 billion in business revenues (output), $6.2 billion in state and local taxes, and $8.7 billion in federal tax revenues.

Over a 15-year period starting in 2008, Los Angeles World Airports (LAWA) will have spent more than $14 billion to re-imagine, renovate and rebuild LAX. 
The LAEDC study looked at the significant and positive economic impacts of $10.1 billion in spending for capital-improvement projects. 

The on-going LAX Modernization Program, which is expected to finish in 2023, is creating 121,640 additional annual jobs, with labor income of $7.6 billion, $20.3 billion in business revenues (output), $966 million in state and local taxes, and $8.7 billion in federal tax revenues. 

"LAX is powering an economic resurgence across our city, and we are investing billions to make it even stronger," says Los Angeles Mayor Eric Garcetti. 

"The LAEDC report confirms that this generational investment in our airport is paying off with hundreds of thousands of jobs for Angelenos and billions added to our local economy." 

City council member, Mike Bonin, enthuses: “LAX is a critical job generator for our City and our region, and I am very excited to see that a large number of those jobs benefit my district and my constituents.

"As the study highlights, the LAX Landside Access Modernization Program (LAMP) will create more good jobs, while also improving the passenger experience at LAX. I look forward to this and the other work we are doing to make LAX a world-class airport, as well as a first-class neighbour."
The report was based on LAX’s 2014 operations, when the airport served 70.7 million passengers and moved two million tons of mail and cargo on over 578,000 domestic and international flights. 

 On and off-airport services supported 142,970 jobs in 2014. 

Arriving visitors spent $9.7 billion and supported 155,640 jobs at the region’s many hotels, restaurants, theme parks and entertainment centres, and retail outlets. 

Also, more than $45.6 billion of goods shipped through LAX to international destinations were produced by regional manufacturers, whose employees and suppliers benefited from these sales. International exports supported 322,000 jobs. 

“Los Angeles World Airports is revitalising LAX to provide facilities, amenities, and quality customer service that today’s travellers expect from a world-class airport,” says LAWA chief executive, Deborah Flint.

“The projects underway at LAX, and those being planned, are also of a size and duration that will create new jobs and provide opportunity for meaningful participation of small, local and diverse businesses.”

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