Aviation Industry: Adding value to the economy

by Abubakar Shoaib
Aviation industry contributes to the economy

The aviation industry has a substantial economic impact, both through its own activities and as an enabler of other industries. Its contribution includes direct, indirect, and induced impacts, which are related to the total revenues of the air transport industry.

The aviation industry uniquely connects the world, adding immense value to the global economy. It supports $3.5 trillion in world economic activity (4.1% of global gross domestic product). This section provides a global picture of economic activity supported by aviation.

$961.3 billion direct GDP

The world’s airlines carry over four billion passengers a year and nearly 61 million tonnes of freight. Providing these services creates 11.3 million direct jobs and contributes $961.3 billion to global GDP.

The global air transport industry is larger than both the automobile manufacturing and pharmaceutical manufacturing industries. In fact, if air transport were a country, its GDP would rank 17th globally, similar to that of Indonesia or the Netherlands.

Aviation Industry

Photo: Unsplash

$816.4 billion indirect GDP

These include suppliers’ jobs and services to the air transport industry, such as aviation fuel suppliers, construction companies, suppliers of sub-components used in aircraft, manufacturers of goods sold in airports, and a wide variety of business services, such as call centers, IT and accountancy. These indirect activities contributed approximately $816.4 billion to global GDP.

$692.8 billion induced GDP

Around $692.8 billion induced GDP is created by employees in the air transport industry using their income to purchase goods and services for their own consumption.

The spending of those directly or indirectly employed in the air transport sector supports jobs in industries ranging from retail and manufacturing to banking and hospitality.

$1 trillion in tourism GDP

Tourism is fast becoming one of the world’s largest industries, and air transport is essential to this: over half of all international tourists fly to their destinations. Conservative analysis suggests aviation supports $1 trillion in economic activity within the tourism industry.

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