Regional councils are increasingly subsidising loss-making airports to keep essential services running, with new data showing more than half of Australia’s regional airports are operating in the red.
A national survey found a median annual deficit of $192,000, highlighting the growing financial strain on local ratepayers who rely on these airports for health care, emergency response and connectivity.
The Regional Airports Financial Sustainability Survey, commissioned by Regional Capitals Australia (RCA) and the Australian Airports Association, found councils are shouldering the cost of infrastructure critical to everyday life in regional communities.
RCA Chair and Dubbo mayor Josh Black said the findings reflect the reality facing many regional areas.
“Regional airports are essential to our communities — not just for travel, but for access to health services, emergency response and economic activity,” Black said.
“Yet it is local ratepayers who are increasingly being asked to fund infrastructure that delivers national benefits.”
Nine out of 10 regional airports support critical health services such as the Royal Flying Doctor Service, while the majority also play key roles in disaster response, emergency services and search and rescue operations.
Despite this, nearly 60 per cent of airports have delayed critical upgrades due to funding constraints, raising concerns about safety and service reliability.
“We have already seen examples of airstrips failing, leaving communities without access to essential services,” Black said.
Regional passengers are also paying significantly more to travel, with fares on some routes averaging 52 per cent higher per kilometre than in metropolitan areas.
“This means regional communities are being hit twice — paying more to fly, while also funding the infrastructure through their rates,” he said.
RCA is calling for greater federal investment, including recognising regional airports as critical national infrastructure and providing ongoing funding support.
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