London Luton Airport (LLA) will bring a further £1 billion annually to the economy and create 10,500 new jobs over the next 15 years, according to a new report.
The report into the airport’s economic impact, published by independent consultancy Oxford Economics, coincides with record passenger growth at the UK gateway.
Indeed, 24% more people passed through the airport in November this year than in the same month last year, making LLA the fastest growing major airport in the UK.
The airport has also added 20 new routes and welcomed four new airline partners in 2015.
London Luton, which already supports £1.3 billion of economic activity and 27,200 jobs today, has responded to the upturn in traffic by launching a £110 million programme to redevelop its facilities by 2020.
As well as delivering major improvements for passengers, the transformation will increase capacity from 12 million to 18 million passengers per year.
The Oxford Economics study also reveals that the airport creates a large proportion of highly skilled jobs for the region. The figures show that the average gross wage at LLA is £38,000, compared to the national average of £27,000.
In addition, 40% of the new jobs created will be in management, professional or skilled occupations.
The key findings of the report are as follows:
• LLA’s contribution to the national economy is forecast to increase by 77% from £1.3 billion in 2013 to £2.3 billion per annum by 2030 (£4,300 per minute, every day of the year).
• LLA currently contributes £732 million annually to the Three Counties economy. This is predicted to double to £1.4 billion per annum by 2030.
• In 2013, the airport directly supported £356 million in gross wages for its workers and generated £237 million in tax revenues for the UK Exchequer.
Creating new jobs
• Today the airport directly supports 9,400 jobs in the region.
• The redevelopment plans will create 3,700 new sustainable jobs at the airport by 2030 – an increase of 39%. This does not include jobs created through the construction works.
• Indirectly, the airport supports 27,200 jobs. This will increase by 10,500 to 37,700 by 2030.
The recent Davies Commission report highlighted that airports such as LLA have a crucial role to play in meeting capacity demand for London and the South East in the short-medium term.
And with the £110 million investment already underway, LLA is firmly committed to deliver on this aspiration.
Nick Barton, CEO of LLA, comments: “This report vividly illustrates the economic benefits that LLA brings to the local and regional economy.
“As we deliver on our ambitious £110 million plans to transform the airport, we will be working hard to ensure that our region and local communities reap the maximum benefit and share in our success.
“The report is very timely as the government considers the location of a new runway in South East England.
“The Airports Commission made clear that it is imperative for the UK’s international competitiveness that airports such as LLA grow. Our redevelopment will ensure that we continue to punch above our weight within London’s six runway system, delivering greater choice, value and service to passengers.”