Airport Landing Fees & Terminal Rental Rates

How Airport Landing Fees Are Calculated

Airport landing fees are the per-operation charges that airlines pay for using airport airfield infrastructure. Most U.S. airports calculate landing fees on a cost-recovery basis, dividing total airfield area costs by projected aircraft landed weight (measured in 1,000-lb units). The resulting fee — typically ranging from $2 to $8 per thousand pounds at large hubs — recovers runway maintenance, airfield lighting, ARFF services, and related operating expenses. Some airports use a residual methodology where airlines guarantee full cost recovery, while others use compensatory approaches where the airport bears volume risk. The methodology is defined in each airport's airline use agreement, which governs how rates are set and adjusted annually.

Terminal Rental Rates and Space Allocation

Terminal rental rates reflect the cost airlines pay for exclusive-use and preferential-use space in airport terminals. Expressed as an annual rate per square foot, these rates cover terminal building operating costs including utilities, janitorial services, common-use systems, and capital cost amortization. At large hub airports, terminal rental rates typically range from $80 to $250+ per square foot annually, with significant variation based on terminal age, cost allocation methodology, and recent capital investment. Airports that recently completed terminal renovation or expansion programs often show higher rates as new capital costs flow through the rate base. For details on how space types affect ratemaking, see our analysis of terminal space and ratemaking.

Related: Airline Rate Methodologies · Cost per Enplaned Passenger · CPE Dashboard