Tucson Airport Authority

$10.9 Billion Economic Impact, Potential to Soar Higher

By Loni Nannini

Tucson Airport Authority (TAA) is flying high with a $10.9 billion annual economic impact across Southern Arizona and a reach that extends to every aspect of the regional economic infrastructure. 

It’s a testament to the local airport system that continues to prove its outsized value alongside Davis-Monthan Air Force Base/Ft. Huachuca, the University of Arizona, Raytheon and other major stakeholders.  

“The Tucson Airport Authority airport system is an economic engine for the region. It demonstrates that a community with a thriving airport usually has a thriving economy: Airports are synergistic with the local region because people rely on transportation for jobs, recreation, education, and government,” said Danette Bewley, TAA president and CEO. 

“All elements of the community rely on us having a healthy, thriving airport, just as we rely on those elements to provide healthy and thriving services. The airport is a vital mechanism in that entire ecosystem.”

A 2024 economic impact report by Elliott D. Pollack & Company found that TAA—a nonprofit created by community leaders over 75 years ago to oversee Tucson International Airport (TUS) and Ryan Airfield (RYN) south of Tucson—supported more than 42,000 jobs with $2.9 billion in wages. It helped to facilitate visitor spending of $936.9 million annually and generated a conservative estimated tax revenue of $115 million statewide and more than $110 million locally. 

Bewley emphasized that wages and tax revenues earned because of the existence of the airport system create a “multiplier effect,” further fueling other sectors of the regional economy. 

At the core of TAA’s vision for continued growth is the positioning of TUS as an easy-to-use airport that emphasizes convenience, customer service,  safety and security. 

“Bigger doesn’t mean better: It just means bigger. We compete and do the same things as larger airports, but at a different scale, and sometimes we do things better,” said Bewley.

“When you are a smaller airport, you have the opportunity to be more connected to all aspects of the business enterprise and operation.  We tend to focus on being  entrepreneurial, creative and innovative, which allows us to function at a higher level. That is what makes being at a smaller airport so much fun.” 

Branding TUS

One of more than 500 commercial airports in the country, TUS ranks within the top 100 airports in passenger volume and is among the largest nationwide by land area with 8,200 acres. The airport is also home to the Arizona Air National Guard’s 162nd Wing, the premier F-16 fighter pilot training unit. 

Through two concourses and 19 gates, TUS currently serves seven airlines—Alaska, American, Delta, Frontier, Southwest, Sun Country, and United. These carriers offer one-stop connections to nearly 500 cities globally and non-stop routes to 19 destinations. 

TAA has adopted a growth mindset regarding air service development, amenities, and customer service and infrastructure. 

“Ultimately, our goal is to set the airport up for the future, providing customers and airlines with a much more modernized product. . .we are always planning 10 and 20 years in the future because if we are not, we are falling behind,” said Bewley.

The philosophy is paying off: More than 3.8 million passengers flew through TUS in 2024, marking a 3.9% increase over the previous year. If projections are correct, it is anticipated that TUS will see over 4 million passengers in 2025.

In 2024, TUS ranked first among the top 30 western airports in the U.S. for seat capacity growth with a 16.8% year-over-year growth rate during the Thanksgiving holiday period.

“We are outperforming our West Coast peer airports in seat capacity growth, which speaks to the growing profile of our airport. When you look at West Coast airports, we are at the top of the pack,” said Austin Wright, chief communications officer for TAA.

A new marketing campaign, “Fly Tucson First,” seeks to promote TUS as an effective hub not only for consumers, but as the premier choice for business travelers.

“We can be a niche airport that offers a unique and pleasant user experience. We are functionally easier to use and sophisticated,” said Bewley.

TAA as Enterprise

With a $52 million annual budget for operations and maintenance, TAA is also distinguishing itself as a powerful and innovative business enterprise. 

Recently, it was the recipient of a $57 million grant through the Federal Aviation Administration Airport Improvement Program.

“We received the largest grant in the United States for work we are doing on Airfield Safety Enhancement Program. Our infrastructure is such an important element for the success of our airport enterprise  and we are grateful for the partnership and the financial support from the FAA in this critical project. . .and receiving a grant of this size and magnitude speaks volumes,” Bewley said.

To date, TAA has been awarded $300 million in grants, totaling 75% of the $400 million projected for TAA’s Airfield Safety Enhancement Program. The project, which includes demolition and reconstruction of runways, taxiways and other improvements, is slated for completion by 2028 or 2029 depending on federal funding. 

“In short, we are modernizing our airfield to meet current safety standards and this will take us far into the future,” said Bewley. 

TAA is also conducting a $1.5 million-plus aesthetic refresh of some elements in the TUS terminal and is in the design phase for a modernized Checked Baggage Inspection System. Long-term goals include planning for a future terminal to meet customer expectations and accommodate expanded airline carrier service.

For now, Bewley said TAA continues to pursue and “maximize grants to narrow the gap further” and effectively minimize airline costs for flights through TUS. With aeronautical revenue comprising 65% of total revenue, TAA is also working to diversify and increase non-aeronautical revenues (from tenants, parking, rental cars, etc.). 

TUS currently has a competitive—and very appealing—cost per enplaned passenger (CPE) of just under $10. In comparison, the CPE at Seattle is $30 and San Francisco’s CPE is upwards of $40. 

“There are many data points that airlines look at, and if you get too high on any data points, you might be passed over so, we are very cognizant of costs,” said Bewley. 

“We are competitive with our low-cost structure and operate the airport in a cost-conscious manner, so we remain attractive to the air carriers.” 

Ultimately, Bewley said that building relationships with stakeholders now will position TUS to soar into the future.  

“We come to work every day trying to make the community better by running the airport system efficiently and effectively and having positive relationships with airline stakeholders, tenants and customers. Because of that approach, we will benefit, which means in turn, the community benefits.”

Pictured above – Danette Bewley, President & CEO, Tucson Airport Authority. Photo by Brent G. Mathis

READ THE FULL SPECIAL REPORT HERE.