Congestion at Three Major Airports of America’s East Coast Costing Lump Sums of Money

The annual cost of flight delays caused by air traffic congestion at the New York Region’s three major airports were responsible for more than $2.6 billion in losses to the regional economy in 2008, and –if no action is taken- will total a staggering $79 billion over the eighteen year span between 2008 and 2025, according to Grounded: The High Cost of Air Traffic Congestion, a report released by the Partnership for New York City.

In 2008, LaGuardia, JFK and Newark served about 107 million passengers, including 32 million business travelers. According to the report, the region’s airports, which handle about one-third of the nation’s flights, are ultimately responsible for nearly three-quarters of nationwide delays. These delays cascade and affect flights at airports throughout the global system.

The Partnership undertook this study as a way to establish the full economic costs of air traffic congestion at the three major airports serving the New York Metropolitan Region: John F. Kennedy International Airport (JFK), Newark Liberty International Airport (EWR), and LaGuardia Airport (LGA).

For passengers flying during the peak season, delays at the regional airports due to congestion were 68 minutes for departures and 53 minutes for arrivals, on average, across the region in 2007. By the end of day, delays frequently build up to 130 minutes or more.

If left unabated, on average, across all three airports, per passenger time loss due to congestion will rise from 60.6 minutes in 2008, to over 106 minutes in 2025.

For business travelers, the cost of the travel time lost to congestion delays at the three regional airports was $676 million for 2008, and is projected to be over $18 billion for the period 2008-2025. About half this cost is incurred by residents and businesses based in the region. The loss to leisure travelers in 2008 was $993 million, with an estimated cumulative cost of $32 billion from 2008-2025.

The airline industry incurred significant losses in fuel and staffing costs due to congestion, estimated at $834 million in 2008, and a total of $25 billion over the next 18 years.

Shipping companies that utilize both passenger and freight aircraft also suffer losses from excessive delays. These losses were about $136 million in 2008, and would be about $4 billion between 2008 and 2025.

In addition to costs incurred by system users, the report identifies costs to the regional economy as a whole that result from productivity losses that are directly attributable to air traffic congestion. Losses include 5,600 full-time jobs that will not be created, over $16 billion in lost output and $5.5 billion in lost labor income over the next 18 years.

The entire region also must bear the impact of additional emissions generated by aircraft in on-the-ground delays. The long-term cost of these emissions is estimated to be $1.7 billion in total for the eighteen-year period.

Through 2025, the region will incur an aggregate loss of $23 billion in output, earnings and environmental costs simply as a result of flight delays at three airports. This does not include the significant economic consequences of delays within the national system that are attributable to problems stemming from congestion at JFK, LaGuardia and Newark Liberty.