Study Shows Luxembourg Airport Contributes €9.2bn in GDP to Economy

On Wednesday 26 February 2025, Luxembourg Airport presented the results of a study on the economic impact of the airport on Luxembourg and the Greater Region, at a press conference held at Luxembourg Airport in Findel.

The economic impact assessment is based on a study conducted by SEO Amsterdam Economics.

Luxembourg Airport was represented by Alexander Flassak, CEO, and Gilio Fonck, Chair of the Board of lux-Airport, at the press conference.

Alexander Flassak welcomed the results of the study which showed that the airport played a significant role in the country’s economy.

Dr Martin Adler, Senior Researcher at SEO Amsterdam Economics, presented the findings, together with Dr Christiaan Behrens, Senior Project Manager at SEO Amsterdam Economics. Dr Adler stated that the economic impact of the airport amounts to €9.2 billion (approximately 13% of Luxembourg’s GDP) with a job impact of 90,000. As the results are based on 2019 figures, Dr Adler added that these estimates could be on the conservative side. However, he emphasised that the 2019 figures align with those of 2024.

Several components of the economic impact were analysed. These were: direct impact, indirect impact, induced impact, tourism and catalytic impact.

The direct economic impact result indicated that €1.7 billion and 7,000 jobs are directly related to Luxembourg Airport. The indirect economic impact (companies that supply or support the airport’s activities) was reported to be €2.2 billion and 23,000 jobs. Induced impact (linked to the money spent by employees) accounted for €2.4 billion and 30,000 jobs. Tourism accounted for €1.7 billion and 25,000 jobs, while catalytic impact accounted for €1.1 billion and 5,000 jobs. Catalytic impact describes economic activity and productivity resulting from the airport, excluding tourism. According to Dr Adler, this figure is difficult to quantify and may be higher than reported which would mean that the total economic impact figure of €9.2 billion may, in fact, be underestimated.

The study also reported that from 2019 to 2014 passenger numbers at the airport increased from 4.4 million to 5.1 million. 830,000 tonnes of cargo was transported through the airport in 2024, compared to 800,000 in 2019.

Dr Adler also reported that for every €1 generated by the airport, an additional €1.30 is generated in the supplier network, €0.30 from within Luxembourg and €1 from neighbouring countries.

Discussing the broader societal impact of the airport, Dr Adler stated that a country with good air service usually has higher life expectancy, trade and innovation. He added that these links are causal rather than direct, but that studies have shown positive societal impacts in a country with good air connectivity. For example, in Luxembourg, the financial centre is influenced by air connectivity.

Environmentally, Luxembourg Airport is striving for net zero CO2 emissions by 2050. The figure currently stands at 0.8%, with ongoing processes in place to continue to reduce the environmental footprint. Landing charges have been introduced to help combat noise pollution.

The average passenger going through Luxembourg Airport spends approximately €300. This is made up of ticket costs, retail and service spending.

Alexander Flassak thanked SEO Amsterdam Economics for conducting the study and stated his desire to follow the trends of economic input with further studies. He added that an airport’s ability to generate income is closely tied to movement. The business climate and aviation industry are related, with local economy supporting airport business and vice versa. He stressed that there was room for capacity expansion at the airport (e.g. larger planes accommodating greater passenger numbers) and added that a second runway is not being considered at the moment.

HOM