The Economic Impact 

of Civil Aviation on the 

U.S. Economy

June 2014
Contents

Foreword

Overview

Introduction

What’s New

National Impact of U.S. Civil Aviation

Methodology

Types of Economic Impacts

Measures of Economic Impacts

Results

Aviation’s Contribution to Gross Domestic Product

Real Change from Previous Years

Conclusion

Appendix – Supplemental Tables

Glossary of Economic Terms

3

4

6

6

7

7

8

8

9

13

14

15

17

23
2014 Report | 3

Flying is an inspiring part of American life. It’s a symbol of our freedom, 

pioneering spirit, and economic success. As the nation continues to revitalize itself 

following the most recent recession, civil aviation has outpaced the national 

economy. In 2012, aviation accounted for 5.4% of our gross domestic product 

(GDP), contributed $1.5 trillion in total economic activity, and supported 11.8 

million jobs. Aviation manufacturing also continues to be the nation’s top net export.

The nation’s economic success depends on having a vibrant civil aviation industry. 

To support this effort, the FAA remains committed to ensuring the safest, most 

efficient aerospace system in the world. We’re focused on the following four 

strategic priorities: making aviation safer and smarter, delivering benefits through 

technology and infrastructure, enhancing global leadership, and empowering the 

FAA’s workforce so we can innovate. We’re in the process of transforming the 

airspace system by deploying the Next Generation Air Transportation System 

(NextGen). NextGen will make aviation more fuel and cost efficient, and more 

environmentally friendly.

This concise report, ideal for policymakers and industry officials, offers the latest 

data on the economic impact of civil aviation. It discusses the economic benefits 

of passenger and cargo transportation, from activities by commercial airlines, air 

couriers, airports, tourism, and manufacturing. This version also estimates the 

economic impact of general aviation, a uniquely American achievement. In addition 

to 2012, this report also includes revised economic impact estimates for the years 

2000 to 2009 and newly estimated economic impacts for 2010 and 2011.

Flying remains an economic frontier for America. We see unmanned aircraft 

and commercial space launches on the horizon. Through these innovations, 

civil aviation will continue to inspire the next generation, and bring economic 

prosperity to our lives.

Foreword

Teri L. Bristol

Chief Operating Officer

Air Traffic Organization

Federal Aviation Administration
4 | The Economic Impact of Civil Aviation on the U.S. Economy

Providing Vital Connectivity to the 

World...

Civil aviation connects passengers and freight almost 

anywhere in the world. Civil aviation connectivity is 

a key facilitator of economic growth. U.S. businesses 

and consumers continue to depend on the vibrant 

and unwavering services of the civil air transportation 

industry while the U.S. economy continues down the 

path of revitalization. Some highlights of civil aviation 

in 2012 include:

Overview

• Air carriers operating in U.S. airspace transported 

837.2 million passengers with over 1,146.0 billion 

revenue passenger miles (RPM).

• More than 61.2 billion revenue ton-miles (RTM) of 

freight passed through U.S. airports.

• Commercial airline operations enabled $262.8 

billion of visitor expenditures on goods and services.

• Civil aircraft manufacturing continues to be the top 

net exporter in the U.S. with a positive trade balance 

of $54.3 billion.
2014 Report | 5

1 Bureau of Economic Analysis and Census Bureau. http://www.bea.gov/international/detailedtradedata.htm For 2009, the BEA and Census Bureau 

reported the civil aviation trade balance was $44.1 billion. This number is different than the trade balance statistics published by the US International Trade 

Commission (USITC), as the USITC estimates did not subtract imports from exports. 

2 The major air carriers defined by BTS include: AirTran, Alaska, American, American Eagle, Atlas Air, Delta/Northwest, Federal Express, Frontier, Hawaiian, 

JetBlue, SkyWest, Southwest, United/Continental, UPS and US Airways

3 http://transtats.bts.gov/ 4

 World Bank, Databank, December 2013. http://data.worldbank.org/ 5 Bureau of Economic Analysis, National Income and Product Account Tables, December 2013. http://www.bea.gov/iTable/indexnipa.cfm 6

 U.S. Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey. December 2013. http://www.bls.gov/data/

Invigorating the U.S. Economy...

The vitality and resourcefulness of the U.S. air 

transportation network continues to energize the U.S. 

economy. Since the end of the recession in June 2009, 

real U.S. economic growth averaged 2.4 percent per year 

between 2009 and 2012 (2009 dollars), accounted for a 

total of 7.3 percent over the three-year period. During 

the same time, real primary output of civilian aviation 

outpaced the U.S. economy, by growing at 11.8 percent 

between 2009 and 2012 while averaging 3.9 percent 

per year.

The 2012 civil aviation economic impact estimates 

in this report reveal that the real growth in civilian 

commercial aircraft manufacturing output between 

2009 and 2012 averaged 9.2 percent per year, outpacing 

overall U.S. economic growth with sales of new aircraft 

in both the domestic and overseas markets. Civil aircraft 

manufacturing fuels the U.S. economy by being the top 

U.S net export. According to data from the Bureau of 

Economic Analysis (BEA) and the U.S. Census Bureau, 

civil aircraft manufacturing contributed $54.3 billion to 

the U.S. trade balance (exports less imports) in 2012.1

The U.S. airline industry is both dynamic and innovative. 

Faced with persistently high jet fuel costs, the industry 

continues to restructure and streamline operations in 

order to maximize fuel efficiency and manage operating 

costs. The growth of airline operations output (in real 

terms) was not far behind aircraft manufacturing at just 

over 20 percent between 2009 and 2012. Also noteworthy, 

airline operating revenue and profits data from the 

Bureau of Transportation Statistics reported that major 

U.S. airlines2 had an overall net profit margin of 4.0 

percent in 2012 versus a 1.0 percent net profit margin in 

2009.3 In addition to managing costs, U.S. airlines appear 

to have adjusted their business models to a pseudo just-intime delivery system, not unlike the U.S. manufacturing 

sector. Also noteworthy, IATA reported that the near 

term outlook for U.S. airlines is projected to surpass 2012.

“Airlines in North America, where consolidation has 

progressed the furthest, are expected to generate the 

largest profits and best margins in both 2013 and 2014.”

-IATA December 12, 2013 

Sustaining Economic Development 

and Growth...

From traveling home for the holidays, overnight 

delivery of time sensitive goods, to local air traffic 

news reports - civil aviation is an integral part 

of everyday life and commerce in the U.S. Air 

transportation provides an essential foundation for 

businesses and families to connect and re-connect 

while ensuring economic growth and vitality.

Since the last economic impact report, annual global 

real gross domestic product (GDP) grew 3.0 percent 

per year between 2009 and 2012.4 During the same 

time, U.S. real GDP grew 2.4 percent per year.5

However, despite a slower recovery from the global 

recession than the rest of the world, the U.S. economy 

generated $16.2 trillion in value-added economic 

activity and supported 143.3 million jobs in 2012.6 At 

the same time, the civil aviation industry

• Supported 11.8 million jobs,

• Accounted for $1.5 trillion in total economic activity, 

and 

• Contributed 5.4 percent to U.S. GDP.
6 | The Economic Impact of Civil Aviation on the U.S. Economy

What’s New?

Due to budget constraints, the Federal Aviation 

Administration (FAA) will only publish an abbreviated 

version of The Economic Impact of Civil Aviation on 

the U.S. Economy this year. This report incorporates 

the latest economic data available through the end of 

2013 and includes the most important data tables from 

previously published reports.

The report incorporates the most recent year (2012) 

data from the U.S. Department of Transportation 

(DOT), U.S. Department of Commerce (DOC), and 

U.S. Department of Labor (DOL). Along with the 

economic impact estimate for 2012, the report includes 

revised economic impact estimates for the years 2000 

through 2009 and newly estimated economic impacts 

for 2010 and 2011.

While this report incorporates most of the required 

source data, some sources were not available in 

time for this publication. For the primary estimates 

of manufacturing output in 2012, the FAA used 

monthly manufacturing reports from the DOC7 as 

extrapolators. Part 135 Activity Survey (GA Survey) 

was not available for 2011 and 2012. General aviation 

(GA) output estimates in this report were extrapolated 

using data from the previously published GA Surveys.

With the most recent release of U.S. GDP data, 

the Bureau of Economic Analysis has made several 

changes to the definition of GDP.8 Since this report 

calculates aviation’s contribution to GDP, the FAA has 

made adjustments accordingly to ensure consistency 

across annual estimates - See section on “Aviation’s 

Contribution to GDP” for further details.

Due to resource constraints, the detailed reporting of 

the impact of federal spending and enabling impacts 

will not be published in this report. Those impact 

estimates will be updated in forthcoming publications.

The next section describes the methodology used to 

estimate the economic impact of civil aviation on the 

U.S. economy.

Introduction

7

 2012 Annual Survey of Manufacturers data from the Department of Commerce (DOC) are extrapolated using the monthly Manufacturers’ 

Shipments, Inventories, and Orders (M3) DOC survey.

8 http://www.bea.gov/national/an1.htm#2013comprehensive
2014 Report | 7

The Economic Contribution

The report estimates the economic contribution of the 

civil aviation industry to the U.S. economy. Civil aviation 

has far-reaching economic impacts. While some of these 

impacts cannot be measured quantitatively, this report 

captures economic activity generated by direct and 

indirect air transport of passengers and cargo using the 

best data available from government and private sources. 

Methodology

The total economic impact of an industry is a summation 

of primary impacts and induced impacts of spending on 

that particular industry. This definition is standard for 

economic-impact studies and is used to estimate aviation’s 

unique economic contribution to the national economy. 

The data used to measure the primary economic impacts 

of civil aviation were collected from reliable government 

and private sources. This study estimated those impacts by 

looking at industry output, earnings, and jobs. These data 

were entered into the RIMS II Input-Output Model, a 

model developed by the U.S. Department of Commerce’s 

Bureau of Economic Analysis, to derive the secondary 

economic impacts of spending. Primary and secondary 

impacts were then summed to produce a measure of civil 

aviation’s total impact on the U.S. economy.

National Impact of 

U.S. Civil Aviation
8 | The Economic Impact of Civil Aviation on the U.S. Economy

Types of Economic Impacts

Primary Impacts: The primary impacts of aviation 

are a summation of direct and indirect impacts of civil 

aviation on the U.S. economy and include:

• Air transportation and supporting services

• Aircraft, aircraft engines, and parts manufacturing

• Travel and other trip-related expenditures by 

travelers using air transportation

Induced or Secondary Impacts: Induced impacts 

result from expenditures made by industries identified 

in the measurement of primary impacts to supporting 

businesses and entities, as well as the spending of 

direct and indirect employees. Induced impacts 

capture the secondary impacts to the economy as 

direct/indirect sales, and payroll impacts are circulated to 

supporting industries through multiplier effects.

Measures of Economic Impacts

Primary expenditure estimates are input into the 

RIMS II model to estimate the secondary effects of 

those expenditures on the U.S. economy. The output 

of the RIMS II model includes the secondary effects on 

economic output, earnings and jobs.

Output: The total economic value of goods and 

services produced.9

Earnings: Wages and salaries, other labor income, 

benefits, and proprietors’ income paid to all employe 

persons who deliver final demand output and services.

Jobs: The number of people employed in the industry 

that provide civil-aviation services, manufacture 

aircraft and aircraft engines, or work in other 

industries that are indirectly affected by activity in the 

civil air transportation sector.

9

 “Output” includes the sum of all of intermediate goods and services used in production, plus value added by the industry itself. This distinguishes 

output from gross domestic product, which only counts value added.
2014 Report | 9

Results

Table 1 summarizes the total impact of U.S. civil 

aviation on output, earnings, and jobs. In 2012, economic 

activity attributed to civil aviation-related goods and 

services totaled $1.5 trillion, generating 11.8 million jobs 

with $459.4 billion in earnings. Aviation contributed 5.4 

percent to GDP, the value-added measure of overall U.S. 

economic activity.

Civil aviation’s recovery from the last recession 

accelerated in 2011 with an increase in its contribution to 

GDP from 5.2 to 5.3 percent by the end of 2011, followed 

by 5.4 percent in 2012 (Table 1).

Table 1 Summary - Civil Aviation Economic 

Impact on U.S. Economy 2000-2012 (Current 

Dollars)

Output Earnings Jobs Percent

Year ($Billions) ($Billions) (Thousands) of GDP*

2012 1,533.8 459.4 11,790 5.4 

2011 1,455.0 437.2 11,238 5.3 

2010 1,354.8 407.8 10,496 5.2 

2009 1,309.4 393.2 10,118 5.2 

2008 1,453.5 436.9 11,237 5.6 

2007 1,421.6 426.7 10,960 5.6 

2006 1,315.2 395.4 10,185 5.4 

2005 1,204.6 362.9 9,405 5.2 

2004 1,107.6 334.0 8,653 5.1 

2003 1,013.9 305.4 7,881 5.0 

2002 1,002.1 300.8 7,735 4.6 

2001 1,077.8 323.6 9,383 4.7 

2000 1,131.0 339.5 9,891 5.1 

*Note: GDP is gross domestic product excluding 

research and development (R&D).
10 | The Economic Impact of Civil Aviation on the U.S. Economy

Table 2 Revisions to Previously Published Estimates (Current Dollars)

OUTPUT JOBS

Previous Current Percent Previous Current Percent

Year ($Billions) ($Billions) Difference Year (Thousands) (Thousands) Difference

2009 1,311.2 1,309.4 -0.1 2009 10,186 10,118 -0.7

2008 1,437.1 1,453.5 1.1 2008 11,138 11,237 0.9

2007 1,409.7 1,421.6 0.8 2007 10,901 10,960 0.5

2006 1,307.8 1,315.2 0.6 2006 10,149 10,185 0.4

2005 1,206.3 1,204.6 -0.1 2005 9,413 9,405 -0.1

2004 1,106.2 1,107.6 0.1 2004 8,641 8,653 0.1

2003 1,012.9 1,013.9 0.1 2003 7,876 7,881 0.1

2002 1,003.1 1,002.1 -0.1 2002 7,740 7,735 -0.1

2001 1,077.8 1,077.8 0.0 2001 9,383 9,383 0.0

2000 1,131.0 1,131.0 0.0 2000 9,891 9,891 0.0

EARNINGS PERCENTAGE OF GDP

Previous Current Percent Percentage

Year ($Billions) ($Billions) Difference Year Previous Current Difference

2009 394.4 393.2 -0.3 2009 5.2 5.2 0.0

2008 432.6 436.9 1.0 2008 5.5 5.6 0.1

2007 423.7 426.7 0.7 2007 5.6 5.6 0.0

2006 393.5 395.4 0.5 2006 5.4 5.4 0.0

2005 363.4 362.9 -0.1 2005 5.3 5.2 -0.1

2004 333.4 334.0 0.2 2004 5.2 5.1 -0.1

2003 305.1 305.4 0.1 2003 5.0 5.0 0.0

2002 301.1 300.8 -0.1 2002 4.7 4.6 -0.1

2001 323.6 323.6 0.0 2001 4.8 4.7 -0.1

2000 339.5 339.5 0.0 2000 5.2 5.1 -0.1

Table 2 reports revisions from previously 

published FAA economic impact estimates for 

civil aviation. Most of the revisions between 2006 

and 2009 output estimates were due to revised 

data for commercial aircraft manufacturing 

from the Department of Commerce. 

In 2009, the negative revision from previously 

published estimates was due to a revision to 

commercial visitor expenditures.
2014 Report | 11

Table 3 reports real primary output in 2009 dollars 

and is the basis for calculating the total economic 

impact of civil aviation for 2009 and 2012. In order 

to isolate real changes in civil aviation spending from 

inflationary effects, the real primary output measures 

are transformed into 2009 constant-dollar measures. 

Between 2009 and 2012, real primary output increased 

by 11.8 percent. Commercial aviation, the bulk of 

primary output, increased 12.3 percent between 2009 

and 2012, while primary output for total GA economic 

activity increased 2.3 percent. Commercial aircraft 

manufacturing, airline operations, air couriers, and 

visitor expenditures were the drivers of most of the 

growth in commercial aviation between 2009 and 

2012.

Primary output is used to estimate the secondary 

effects of spending in the economy. Primary output 

estimates are input into the RIMS II model to calculate 

the secondary or induced impacts. 

Total output, or the sum of primary and secondary 

impacts, is reported in Table 4, which shows the 

following: 

• In 2012, commercial aviation accounts for the bulk of 

civil aviation’s economic contribution, with operations 

generating $373.9 billion in total output 

• As airline passengers reach their destinations, their total 

expenditures on hotels, rental cars, and entertainment 

contributed $671 billion in total output, nearly double 

the output supported by airlines operations

• Total GA accounted for nearly $79 billion of 

total output in 2012. While the impact is less than 

commercial aviation, the GA contribution continues 

to reflect the industry’s unique role in the nation’s 

transportation system. GA operations contributed $39.3 

billion to total output.
12 | The Economic Impact of Civil Aviation on the U.S. Economy

Table 3 Real Primary Output (2009 Dollars)

Table 4 Total Output, Earnings and Jobs Estimates, 2012 (Current Dollars)

2009 2012 Percent

Description (2009 $Billions) (2009 $Billions) Change

Airline Operations 99.4 119.3 20.1

Airport Operations 25.1 22.6 -10.2

Civilian Aircraft Manufacturing 34.1 44.4 30.4

Civilian Aircraft Engine and Engine Parts Manufacturing 7.2 6.9 -3.9

Civilian Other Aircraft Parts and Equipment Manufacturing 23.4 24.7 5.4

Air Couriers 26.7 30.4 13.8

Visitor Expenditures 228.0 250.2 9.7

Travel Arrangements 4.7 5.5 15.9

Subtotal - Commercial 448.6 504.0 12.3

General Aviation Operations 13.0 13.1 1.0

GA Aircraft Manufacturing 9.1 9.5 4.4

GA Visitor Expenditures 4.6 4.7 1.6

Subtotal - General Aviation 26.7 27.3 2.3

Total Primary Output 475.3 531.3 11.8

Output Earnings Jobs

Description ($Billions) ($Billions) (Thousands)

Airline Operations 373.9 115.9 2,530 

Airport Operations 73.4 25.5 571 

Civilian Aircraft Manufacturing 132.4 33.7 657 

Civilian Aircraft Engine and Engine Parts Manufacturing 21.1 5.6 113 

Civilian Other Aircraft Parts and Equipment Manufacturing 81.7 24.3 513 

Air Couriers 86.1 25.7 761 

Visitor Expenditures 670.8 200.9 5,988 

Travel Arrangements 16.1 5.1 148 

Subtotal - Commercial 1,455.3 436.7 11,282 

General Aviation Operations 39.3 12.2 266 

GA Aircraft Manufacturing 27.0 6.9 134 

GA Visitor Expenditures 12.1 3.6 108 

Subtotal - General Aviation 78.5 22.7 508 

Total Impact 1,533.8 459.4 11,790 
2014 Report | 13

Aviation’s Contribution to Gross 

Domestic Product

In August 2013, the Bureau of Economic Analysis 

released its comprehensive revision estimates of U.S. 

GDP data with several notable changes. One notable 

change that affected the definition of GDP is the 

new inclusion of research and development (R&D) 

expenditures as investment — now part of GDP, 

rather than as intermediate inputs — previously not 

counted in GDP. This new treatment increased the 

level of GDP.

In order to maintain consistency and comparability 

with its previously published estimates, the FAA has 

decided, for this year’s report, to not include R&D 

in the calculation of aviation’s contribution to GDP 

until implications on aviation impact estimates are 

further explored. Therefore, it should be noted that all 

contribution (percent) to GDP estimates referenced in 

this report exclude R&D.

Excluding R&D, U.S. GDP was $15,826.8 billion in 

2012.10 GDP represents the sum of all value-added 

activities in an economy, so intermediate goods and 

services used in the production of goods and services 

are not included. In the previous section, total output 

calculation included intermediate goods and services 

that were purchased as part of the production process. 

In order to compare aviation’s contribution to 

GDP, these intermediate goods and services must be 

subtracted from the total output.

Each sector within the civil aviation industry has a 

different impact on the economy. To estimate civil 

aviation’s overall contribution to GDP, each impact 

type is calculated separately using the RIMS II valueadded coefficients and aggregated. 

10 U.S. Department of Commerce, Bureau of Economic Analysis. August 2013.

The result is shown in Table 5. In 2012, aviationrelated value-added economic activities totaled $847.1 

billion, or 5.4 percent of U.S. GDP.

In 2012, commercial aviation contributed $807.1 

billion or 5.1 percent to GDP. Within commercial 

aviation, the largest component is commercial visitor 

expenditures totaling $403.7 billion, or approximately 

2.6 percent of GDP (Table 5) followed by airline 

operations at $189.7 billion or 1.2 percent of GDP. 

General aviation, while quite small in comparison to 

commercial aviation, still contributed 0.3 percent to 

GDP, or nearly $39.9 billion.

See Appendix for civil aviation’s contribution to GDP 

for the years 2000 through 2012.

Table 5 Civil Aviation’s Contribution to GDP, 2012 

(Current Dollars)

Value 

Added Percent 

Description ($Billions) of GDP*

Airline Operations 189.7 1.2

Airport Operations 41.5 0.3

Civilian Aircraft Manufacturing 62.2 0.4

Civilian Aircraft Engine and Engine 

Parts Manufacturing 10.2 0.1

Civilian Other Aircraft Parts and 

Equipment Manufacturing 41.8 0.3

Air Couriers 48.7 0.3

Visitor Expenditures 403.7 2.6

Travel Arrangements 9.3 0.1

Subtotal - Commercial 807.1 5.1

General Aviation Operations 20.0 0.1

GA Aircraft Manufacturing 12.7 0.1

GA Visitor Expenditures 7.3 0.0

Subtotal - General Aviation 39.9 0.3

Total Impact 847.1 5.4

*Note: GDP is gross domestic product excluding research and 

development (R&D).
14 | The Economic Impact of Civil Aviation on the U.S. Economy

Real Change from Previous Years

Three measures highlight the economic contribution 

of the civil aviation sector: the value of total output, 

earnings paid to employees, and the number of jobs 

supported by civil aviation. These measures are shown 

in Table 6. The dollar values are presented in 2009 

dollars to remove changes due to inflation. Real output 

of civil aviation increased 11.8 percent between 2009 

and 2012 (Table 6), much faster than the 7.3 percent 

increase in real GDP as reported by the BEA.11

The total output of commercial aviation increased 12.4 

percent between 2009 and 2012; almost double the 

growth rate of the U.S. economy. Commercial airline 

manufacturing, airline operations, and air couriers 

were the top contributors to the impressive growth 

rate at 30.4 percent, 20.1 percent and 13.8 percent 

respectively. Expenditures on travel arrangements and 

visitor expenditures increased 15.9 percent and 9.7 

percent respectively.

Job growth in commercial aircraft manufacturing and 

airlines also registered growth rates of 36.9 percent 

and 26.1 percent respectively. Aircraft manufacturing 

is buoyed by the increase in demand for new airplanes, 

and airlines are seeing a return of air travelers after the 

painful financial fallout from the last recession.

According to FAA data, GA operations (number of 

flights) dropped 4.4 percent between 2009 and 2012 

while the cost of operating GA has risen. Despite the 

decrease in reported GA operations, the economic 

impact of GA continued its long term trend of growth 

in output and employment. The overall increase in 

real GA output between 2009 and 2012 was 2.3 percent 

while employment growth was 2.4 percent (Table 6).

11 Bureau of Economic Analysis, August 2013

 Output Earnings Jobs

 ( 2009 $Billions) Percent 

Change (2009 $Billions) Percent 

Change (Thousands) Percent 

Change

Description 2009 2012 2009 2012 2009 2012

Airline Operations 296.5 356.1 20.1 91.9 110.3 20.1 2,006 2,530 26.1

Airport Operations 77.8 69.9 -10.2 27.1 24.3 -10.2 605 571 -5.7

Civilian Aircraft 

Manufacturing 96.7 126.1 30.4 24.6 32.1 30.4 480 657 36.9

Civilian Aircraft 

Engine and Engine 

Parts Manufacturing

 20.9 20.1 -3.9 5.6 5.4 -3.9 112 113 0.9

Civilian Other Aircraft 

Parts and Equipment 

Manufacturing

 73.8 77.8 5.4 22.0 23.2 5.4 464 513 10.7

Air Couriers 72.0 82.0 13.8 21.5 24.5 13.8 637 761 19.5

Visitor Expenditures 582.1 638.8 9.7 174.3 191.3 9.7 5,196 5,988 15.2

Travel Arrangements 13.2 15.3 15.9 4.2 4.8 15.9 122 148 21.7

Subtotal – 

Commercial 1,233.0 1,385.9 12.4 371.1 415.9 12.1 9,622 11,282 17.2

General Aviation 

Operations 38.8 39.2 1.0 12.0 12.1 1.0 262 266 1.4

GA Aircraft 

Manufacturing 25.8 26.9 4.4 6.6 6.9 4.4 128 134 4.8

GA Visitor 

Expenditures 11.9 12.1 1.6 3.6 3.6 1.6 106 108 2.0

Subtotal – 

General Aviation 76.4 78.2 2.3 22.1 22.6 2.1 496 508 2.4

Total Impact 1,309.4 1,464.1 11.8 393.2 438.5 11.5 10,118 11,790 16.5

Table 6 U.S. Civil Aviation: Growth of Total Output, Earnings and Jobs (Real)
2014 Report | 15

Civil aviation connects the entire globe, providing 

much needed economic benefits both seen and unseen 

for U.S. consumers and businesses. Civil aviation has 

been a major force behind decreasing barriers to trade, 

and U.S. civil aviation industry truly remains a unique 

engine for innovation and technological progress. 

The network connectivity of civil air transportation 

provides a dynamic and real-time infrastructure that 

keeps our nation competitive on the global stage. 

Specific areas of civil aviation such as air cargo, 

have contributed to more effective networking and 

collaboration between companies near and far.

This report found that when all impacts are included, 

civil aviation contributed 5.4 percent to the U.S. 

economy in 2012. The total output of civil aviationrelated goods and services amounted to $1.5 trillion 

in 2012 and generated nearly 12 million jobs, with 

earnings of $459 billion.

The economic impacts of civil aviation summarized in 

this report, represent the quantifiable benefits made 

possible by civil aviation. Other benefits are only just 

beginning to be captured by researchers, and there is 

hope that new indexes such as the World Bank Air 

Connectivity Index will provide even more insight 

into civil aviation’s influence on economic growth and 

development. The industry contributes positively to 

the U.S. trade balance, creates high-paying jobs, helps 

keep just-in-time business models viable, and connects 

us to friends, family, and market opportunities. Air 

transportation will continue to move the U.S. and 

global economy towards a bright and healthy future.

Conclusion
16 | The Economic Impact of Civil Aviation on the U.S. Economy
Output ($Billions)

Description 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Airline Operations 274.5 236.8 232.3 251.5 275.3 300.3 326.7 345.0 360.6 296.5 338.9 371.4 373.9 

Airport Operations 44.9 52.2 60.5 58.3 59.9 61.9 65.6 74.2 75.1 77.8 76.1 72.6 73.4 

Civilian Aircraft 

Manufacturing 98.7 111.1 77.2 60.7 56.6 60.7 80.8 94.8 80.3 96.7 90.4 102.7 132.4 

Civilian Aircraft 

Engine and 

Engine Parts 

Manufacturing

 18.4 18.6 17.0 16.9 16.7 18.4 19.8 28.4 28.2 20.9 18.2 18.8 21.1 

Civilian Other 

Aircraft Parts 

and Equipment 

Manufacturing

 55.1 57.7 48.4 48.4 52.2 53.5 63.9 70.8 75.9 73.8 66.1 75.3 81.7 

Air Couriers 57.4 56.4 54.0 58.3 63.5 65.2 73.6 79.8 81.1 72.0 73.8 80.9 86.1 

Visitor 

Expenditures 494.2 461.7 435.5 446.4 503.1 554.1 583.3 621.6 640.2 582.1 601.0 639.4 670.8 

Travel 

Arrangements 18.7 17.8 16.1 15.9 15.6 15.3 15.0 14.5 14.8 13.2 14.4 15.3 16.1 

Subtotal –

Commercial 1,061.8 1,012.3 941.2 956.3 1,042.7 1,129.4 1,228.7 1,329.2 1,356.3 1,233.0 1,279.0 1,376.6 1,455.3 

General Aviation 

Operations 27.2 25.6 26.9 27.3 33.3 38.4 44.6 45.7 46.6 38.8 41.8 41.2 39.3 

GA Aircraft 

Manufacturing 27.8 28.1 21.9 18.3 19.4 24.6 29.4 33.9 37.9 25.8 22.4 25.4 27.0 

GA Visitor 

Expenditures 14.2 11.8 12.0 12.0 12.2 12.2 12.4 12.7 12.7 11.9 11.7 11.8 12.1 

Subtotal –

General Aviation 69.2 65.5 60.8 57.6 64.9 75.2 86.5 92.4 97.2 76.4 75.8 78.5 78.5 

Total Impact 1,131.0 1,077.8 1,002.1 1,013.9 1,107.6 1,204.6 1,315.2 1,421.6 1,453.5 1,309.4 1,354.8 1,455.0 1,533.8 

2014 Report | 17

Appendix – Supplemental Tables

Table 7 U.S. Civil Aviation Economic Impact, Total Output: Primary plus Secondary Impacts (Current Dollars)
18 | The Economic Impact of Civil Aviation on the U.S. Economy

Earnings ($Billions)

Description 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Airline Operations 78.9 68.1 72.0 77.9 85.3 93.0 101.2 106.9 111.7 91.9 105.0 115.1 115.9 

Airport Operations 16.9 19.6 21.1 20.3 20.8 21.5 22.8 25.8 26.1 27.1 26.5 25.3 25.5 

Civilian Aircraft 

Manufacturing 25.5 28.7 19.7 15.4 14.4 15.4 20.6 24.1 20.4 24.6 23.0 26.1 33.7 

Civilian Aircraft 

Engine and Engine 

Parts Manufacturing

 4.6 4.7 4.5 4.5 4.5 4.9 5.3 7.6 7.5 5.6 4.9 5.0 5.6 

Civilian Other Aircraft 

Parts and Equipment 

Manufacturing

 16.0 16.7 14.4 14.4 15.5 15.9 19.0 21.1 22.6 22.0 19.7 22.4 24.3 

Air Couriers 18.0 17.7 16.1 17.4 19.0 19.5 22.0 23.8 24.2 21.5 22.0 24.2 25.7 

Visitor Expenditures 154.3 144.2 130.4 133.7 150.7 165.9 174.7 186.2 191.7 174.3 180.0 191.5 200.9 

Travel Arrangements 6.0 5.7 5.1 5.0 4.9 4.8 4.7 4.6 4.7 4.2 4.5 4.8 5.1 

Subtotal –

Commercial 320.1 305.3 283.3 288.7 315.1 341.1 370.3 400.1 409.1 371.1 385.6 414.4 436.7 

General Aviation 

Operations 7.8 7.4 8.3 8.5 10.3 11.9 13.8 14.2 14.4 12.0 12.9 12.8 12.2 

GA Aircraft 

Manufacturing 7.2 7.3 5.6 4.6 4.9 6.3 7.5 8.6 9.6 6.6 5.7 6.5 6.9 

GA Visitor 

Expenditures 4.4 3.7 3.6 3.6 3.7 3.7 3.7 3.8 3.8 3.6 3.5 3.5 3.6 

Subtotal –

General Aviation 19.4 18.3 17.5 16.7 18.9 21.8 25.0 26.6 27.9 22.1 22.1 22.8 22.7 

Total Impact 339.5 323.6 300.8 305.4 334.0 362.9 395.4 426.7 436.9 393.2 407.8 437.2 459.4 

Table 8 U.S. Civil Aviation Economic Impact, Total Earnings: Primary plus Secondary Impacts (Current Dollars)
2014 Report | 19

Table 9 U.S. Civil Aviation Economic Impact, Total Jobs: Primary plus Secondary Impacts

Jobs (Thousands)

Description 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Airline Operations 1,965 1,695 1,572 1,702 1,863 2,032 2,210 2,334 2,440 2,006 2,293 2,513 2,530 

Airport Operations 437 508 471 453 466 482 511 578 584 605 592 565 571 

Civilian Aircraft 

Manufacturing 548 617 383 301 281 301 401 470 398 480 448 509 657 

Civilian Aircraft 

Engine and 

Engine Parts 

Manufacturing

 100 101 92 91 90 99 107 153 152 112 98 101 113 

 Civilian Other 

Aircraft Parts 

and Equipment 

Manufacturing

 359 376 304 304 328 336 401 445 477 464 415 474 513 

Air Couriers 566 557 478 515 562 577 651 706 717 637 653 716 761 

Visitor 

Expenditures 5,241 4,897 3,888 3,985 4,491 4,946 5,207 5,549 5,715 5,196 5,365 5,708 5,988 

Travel 

Arrangements 176 168 149 147 144 142 138 133 137 122 133 141 148 

Subtotal –

Commercial 9,392 8,918 7,337 7,498 8,223 8,914 9,626 10,369 10,621 9,622 9,998 10,727 11,282 

General Aviation 

Operations 195 183 182 185 225 260 302 310 316 262 283 279 266 

GA Aircraft 

Manufacturing 155 156 109 91 96 122 146 168 188 128 111 126 134 

GA Visitor 

Expenditures 150 125 107 107 109 109 111 114 113 106 104 106 108 

Subtotal –

General Aviation 499 464 398 382 431 491 559 591 617 496 498 511 508 

Total Impact 9,891 9,383 7,735 7,881 8,653 9,405 10,185 10,960 11,237 10,118 10,496 11,238 11,790 
20 | The Economic Impact of Civil Aviation on the U.S. Economy

Table 10 U.S. Civil Aviation Economic Impact, Value Added (Current Dollars)

Value Added ($Billions)

Description 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Airline Operations 100.6 86.8 101.8 127.6 139.6 152.3 165.7 175.0 182.9 150.4 171.9 188.4 189.7 

Airport Operations 21.9 25.5 32.9 33.0 33.9 35.0 37.1 42.0 42.5 44.0 43.1 41.1 41.5 

Civilian Aircraft 

Manufacturing 34.3 38.6 28.9 28.5 26.6 28.5 38.0 44.5 37.7 45.4 42.5 48.2 62.2 

Civilian Aircraft 

Engine and Engine 

Parts Manufacturing

 6.4 6.5 6.4 8.2 8.1 9.0 9.6 13.8 13.7 10.2 8.9 9.1 10.2 

Civilian Other 

Aircraft Parts 

and Equipment 

Manufacturing

 19.2 20.1 18.1 24.8 26.7 27.4 32.7 36.2 38.8 37.7 33.8 38.5 41.8 

Air Couriers 37.8 37.2 31.3 33.0 36.0 36.9 41.7 45.2 45.9 40.8 41.8 45.8 48.7 

Visitor Expenditures 257.7 240.8 241.0 268.7 302.8 333.4 351.0 374.1 385.3 350.3 361.7 384.8 403.7 

Travel Arrangements 10.0 9.6 9.6 9.2 9.1 8.9 8.7 8.4 8.6 7.7 8.4 8.9 9.3 

Subtotal –

Commercial 488.0 465.0 470.0 532.9 582.7 631.5 684.5 739.3 755.5 686.5 712.0 765.0 807.1 

General Aviation 

Operations 10.0 9.4 11.8 13.9 16.9 19.5 22.6 23.2 23.7 19.7 21.2 20.9 20.0 

GA Aircraft 

Manufacturing 9.7 9.8 8.2 8.6 9.1 11.6 13.8 15.9 17.8 12.1 10.5 11.9 12.7 

GA Visitor 

Expenditures 7.4 6.1 6.6 7.2 7.4 7.4 7.5 7.7 7.6 7.1 7.0 7.1 7.3 

Subtotal –

General Aviation 27.0 25.3 26.6 29.6 33.3 38.4 43.9 46.8 49.1 38.9 38.7 40.0 39.9 

Total Impact 515.0 490.3 496.6 562.5 616.0 669.8 728.5 786.1 804.6 725.4 750.7 804.9 847.1 
2014 Report | 21

Table 11 U.S. Civil Aviation Economic Impact, Percent Contribution to GDP

Value Added - Percent of GDP*

Description 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Airline Operations 1.0 0.8 1.0 1.1 1.2 1.2 1.2 1.2 1.3 1.1 1.2 1.2 1.2

Airport Operations 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Civilian Aircraft 

Manufacturing 0.3 0.4 0.3 0.3 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.4

Civilian Aircraft 

Engine and 

Engine Parts 

Manufacturing

0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Civilian Other 

Aircraft Parts 

and Equipment 

Manufacturing

0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.2 0.3 0.3

Air Couriers 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Visitor 

Expenditures 2.6 2.3 2.2 2.4 2.5 2.6 2.6 2.6 2.7 2.5 2.5 2.5 2.6

Travel 

Arrangements 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Subtotal –

Commercial 4.9 4.5 4.4 4.7 4.9 4.9 5.1 5.2 5.3 4.9 4.9 5.1 5.1

General Aviation 

Operations 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1

GA Aircraft 

Manufacturing 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

GA Visitor 

Expenditures 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0

Subtotal –

General Aviation 0.3 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Total Impact 5.1 4.7 4.6 5.0 5.1 5.2 5.4 5.6 5.6 5.2 5.2 5.3 5.4

*Note: GDP is gross domestic product excluding research and development (R&D).
22 | The Economic Impact of Civil Aviation on the U.S. Economy
2014 Report | 23

Annual Rates

Published time series data often represent flows 

which take place over a month, quarter, or year. 

One example is revenue passenger miles, which is 

often reported at rates of RPM per month, per quarter, 

or per year. Therefore, these data are at different 

rates, meaning RPM per year are far higher than RPM

per month and RPM per quarter, making it difficult 

to compare the data. To annualize or present the 

monthly or quarterly data at annual rates, multiply 

the data by 12 and 4, respectively.

Earnings

Earnings are wages and salaries and other labor 

income, such as overtime, benefits and proprietors’ 

income, paid to all employed persons by employers 

for a given unit of work or time. The BLS publishes 

earnings data.

Employment (Jobs)

Employment is the implicit or explicit contractual 

relationship which exists between an employer and 

employee, whereby the employee voluntarily agrees 

to provide work effort to the employer in exchange 

for cash or in-kind remuneration.1

 The Bureau of 

Labor Statistics (BLS) is responsible for collecting and 

publishing data on the number employed within the 

U.S. According to BLS: 

Employment data refer to persons on 

establishment payrolls who received pay for 

any part of the pay period that includes the 12th 

day of the month. Data exclude proprietors, the 

unincorporated self-employed, unpaid volunteer 

or family workers, farm workers, and domestic 

workers. Salaried officers of corporations are 

included. Government employment covers 

only civilian employees; military personnel are 

excluded. Employees of the Central Intelligence 

Agency, the National Security Agency, the 

National Imagery and Mapping Agency and the 

Defense Intelligence Agency also are excluded.2

Gross Domestic Product

Gross domestic product (GDP) is the dollar measure 

of overall economic production during a period of 

time. It is the current dollar value of all final goods 

and services produced within a country during a 

specified time period, such as a year or quarter. These 

goods and services include consumption, investment, 

government expenditures and net exports. GDP also 

can be viewed in value added terms as the sum or 

aggregate of value added over each stage of production 

over the entire economy. The Bureau of Economic 

Analysis (BEA) publishes annual and quarterly 

measures of GDP.

Gross Output

For an industry, gross output is the dollar value 

of goods or services produced by the industry 

and made available for use outside that industry 

during a specified time period.3

 It is measured as 

total sales or receipts, plus other operating income, 

commodity taxes (sales and excise taxes) and changes 

in inventories; or, equivalently, as value added, plus 

goods and services purchased for use in production. 

For an entire nation, total gross output is equal to 

total intermediate inputs plus GDP. Therefore, total 

gross output exceeds GDP. The BEA publishes annual 

national- and industry-level estimates of gross output.

Induced Impact

Induced impacts result from expenditures identified 

in the measurement of primary impacts, as well as 

spending by employees. 

Input

Input is the total monetary value of goods and services 

consumed or used to produce a final good or service. 

These inputs include capital, labor, energy, materials 

and services.

1 United Nations. 2008. System of National Accounts, 2008, p. 136.

2 U.S. Department of Labor, Bureau of Labor Statistics. 2011. Handbook of Labor Statistics. March 2011.

3 Organisation for Economic Co-operation and Development. 2002. “Glossary of Statistical Terms.”

Glossary of Economic Terms
24 | The Economic Impact of Civil Aviation on the U.S. Economy

Multipliers

Multipliers measure the impact of particular 

spending on the rest of the economy. In particular, 

these coefficients gauge the effects of spending on 

output, earnings and employment. The BEA publishes 

industry-level multiplier estimates.

Output

Output is the current dollar production of goods or 

services by a production unit and is measured by total 

sales or receipts of that unit, plus other operating 

income, commodity taxes (sales and excise taxes) and 

changes in inventories.

Primary Impact

Primary impact refers to expenditures on air 

transportation and support services; aircraft, aircraft 

engines and parts manufacturing; and travel and 

other trip-related expenditures by travelers using air 

transportation.

Recession

A recession is the period between an economic peak 

and an economic trough and is characterized by a 

significant decline in economic activity across the 

economy, lasting from a few months to more than 

a year. The timing of economic peaks and troughs 

are based on measures of economic activity such 

as real GDP, employment, retail sales and industrial 

production.4

 Recessions are declared by the Business 

Cycle Dating Committee of the National Bureau of 

Economic Research (NBER). The most recent U.S. 

business-cycle contraction or recession officially 

began in December 2007 and ended in June 2009. It 

was labeled the Great Recession by the press, due to 

the length and severity of the recession. An official 

definition for the term does not exist.5

Seasonally Adjusted, at Annual Rates

This term refers to time series data which have been 

both seasonally adjusted and annualized. See, Annual 

Rates and Seasonal Adjustment.

Seasonal Adjustment

Many aviation-related time series data display seasonal 

patterns or seasonality. For example, travel tends 

to pick up during the summer and the end-of-year 

holiday season and slow down in the spring. Seasonal 

adjustment is a statistical process which removes such 

patterns to reveal underlying trends. In other words, 

seasonal adjustment removes the effects of recurring 

seasonal influences from time series. This process 

“quantifies seasonal patterns and then factors them 

out of the series to permit analysis of non-seasonal”6

trends in the data.

Secondary Impact

Secondary impact is used interchangeably with 

Induced Impact.

Total Economic Activity

Total economic activity is a term used interchangeably 

with Gross Output.

Total Impact

Total impact is the sum of primary and induced impacts.

Value Added

Value added refers to the current dollar contribution 

to production by an individual producer, industry or 

sector during a specified time period. It is measured 

as the difference between gross output and goods 

and services purchased for use in production. (These 

purchased goods and services are also called input 

purchases or intermediate inputs.) Equivalently, 

value added consists of employee compensation, 

production-related taxes, imports less subsidies and 

gross operating surplus. Value added can be summed 

or aggregated across individual producers over an 

entire sector, industry or nation; at the national level, 

total value added equals GDP. The BEA publishes 

national- and selected sector-level annual and 

quarterly measures of value added, as well as selected 

annual industry measures.

4 National Bureau of Economic Research. “Statement of the NBER Business Cycle Dating Committee on the Determination of the Dates of Turning 

Points in the U.S. Economy.”

5 Catherine Rampell. 2009. “‘Great Recession’: A Brief Etymology.” New York Times. March 11, 2009; Courtney Schlisserman. 2010. 

“‘Great Recession’ Gets Recognition as Entry in AP Stylebook.” Bloomberg. February 23, 2010; Neil Irwin. 2010. “It’s Official: The Great Recession 

Ended Last Summer.” Washington Post. September 20, 2010.

6

 Bureau of Labor Statistics. 2010. “Fact Sheet on Seasonal Adjustment in the CPI.” February 23, 2010. 
2014 Report | 25

Acknowledgements

The Economic Analysis Group is very grateful for the 

helpful comments and guidance from:

Zoe Ambargis, U.S. Department of Commerce, Bureau of 

Economic Analysis

Richard Champley, U.S. Department of Commerce, 

International Trade Administration

John Heimlich, Airlines for AmericaTM

Jon Henning, FAA

Daniel Larkin, Airlines for AmericaTM

David Lee, Airlines for AmericaTM

Al Meilus, FAA

Michael Wells, FAA

The Economic Analysis Group under the Office of 

Performance Analysis extends a very special thank you to 

David Chin for supporting this work and to Tony Choi and 

Randal Matsunaga for their value-added and unwavering 

contributions to this project.

For more information, 

please send inquiries to:

Thea Graham

Economic Analysis

Office of Performance Analysis 

System Operations Services

EconImpact@faa.gov
800 Independence Avenue, SW

Washington, DC 20591 PRODUCED BY FAA COMMUNICATIONS • 2014-AJR-063