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LAX creates jobs, boosts economy, according to study
File photo: A sign outside LAX.
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Sharon McNary/KPCC
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An economic impact report released Thursday by the Los Angeles Economic Development Corporation says that Los Angeles International Airport has been a major contributor to the Southern California economy. The study examined the number of jobs created, visitor spending, international exports and the ongoing activity of the airport for 2014, when it served over 70 million passengers and moved 2 million tons of mail and cargo.
“This report showed the overall benefit to the region in terms of activity and job creation,” LAEDC Vice President Christine Cooper said.
The airport hosts approximately 40,000 jobs on its own property, as well an additional 27,500 jobs in businesses directly adjacent to it.
This is the second time the LAEDC has looked at the airport's operations. The first time was in 2011, a period when the country was emerging from a recession, so the report shows significantly higher activity.
When they studied the overall impact of the airport itself, they found that it either directly generated or supports 143,000 jobs in the region with $9 billion in labor income, Cooper told KPCC.
Businesses such as ground transportation agencies, nearby warehouses, FedEx and the airlines themselves greatly depend on the property itself and the incoming and outgoing passenger traffic that the airport generates, according to the report.
“These are companies that also purchase goods and services for their own operations, as the airport does. So they will purchase, for example, aviation fuel or office supplies or paper or coffee and newspapers," Cooper said.
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The report projected that an estimated $10 billion would be spent during the ongoing LAX Modernization Program, which began in 2012 and is due to be completed in 2023.
This program includes a project to connect the airport to the Metro transportation system. Cooper expects this will speed passenger delivery to and from the airport.
In addition to the cost of these renovations and updates, $4 billion has already been spent on the Tom Bradley Terminal that is currently under construction.
“This is really a wonderful investment in our infrastructure and the airport,” she said.
The report states that this will create over 120,000 jobs and $7.6 billion in labor income.
"LAX is powering an economic resurgence across our city, and we are investing billions to make it even stronger," said Los Angeles Mayor Eric Garcetti in a press release. "Today's LAEDC report confirms that this generational investment in our airport is paying off with hundreds of thousands of jobs for Angelenos and billions added to our local economy."
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