• AI is helping airports increase capacity and efficiency without relying solely on major infrastructure projects, improving security screening, baggage handling and operational coordination while reducing delays and supporting profitability.
• Airports are increasingly viewed as diversified commercial and infrastructure assets, with significant revenues extending beyond aviation into retail, dining, parking, advertising, hotels and real estate. However, ageing infrastructure and rising passenger volumes mean physical investment remains essential.
• Cargo is becoming an increasingly important driver of airport value, as e-commerce, evolving trade routes and supply-chain diversification increase demand for fast, reliable freight infrastructure. Airports with strong international connectivity, modern cargo facilities and multimodal links are well placed to benefit.

With airports handling record passenger traffic this summer, attention is increasingly turning to how operators can improve capacity and efficiency without relying solely on major construction projects. Artificial intelligence is becoming a key part of that transformation, helping airports enhance security screening, baggage handling and operational coordination while reducing delays across complex networks.

“AI isn’t replacing airports, it’s making them work better. If an airport can move more passengers through security, reduce delays and improve baggage handling without building another terminal, that’s a meaningful improvement in both efficiency and profitability,” Frank Holmes, CEO and CIO of U.S. Global Investors and founder of the JETS ETF, said.

That evolution reflects a broader change in the role airports play within the global economy. Rather than functioning only as gateways for passengers and aircraft, many airports have developed into diversified infrastructure businesses with revenue streams spanning retail, parking, restaurants, advertising, hotels and real estate development.

“I think many investors still underestimate how much of an airport’s value comes from retail, dining, parking, advertising, hotels and real estate development. The most successful airports increasingly resemble mixed-use commercial hubs rather than simply places where planes land and take off,” Holmes explained.

Technology supports capacity and operational resilience
While AI can improve efficiency, it also highlights the importance of continued investment in physical infrastructure. As passenger volumes rise, airports will face growing pressure from terminal congestion, ageing facilities and air traffic management constraints, making modernisation essential to maintaining service levels.

“AI isn’t replacing airports, it’s making them work better. If an airport can move more passengers through security, reduce delays and improve baggage handling without building another terminal, that’s a meaningful improvement in both efficiency and profitability,” Holmes said.

Ownership structures, however, have created different investment opportunities across regions. Despite the size of the U.S. aviation market, investors have limited access to publicly traded airport operators because many major facilities remain under municipal ownership rather than private or listed structures.

“That’s one of the biggest ironies in global infrastructure investing. The U.S. has historically relied on municipal ownership and public funding rather than privatisation, so we’ve ended up with very few publicly traded airport operators,” Holmes stated. “As a result, American investors have largely missed out on an asset class that’s created significant long-term value in other parts of the world.”

Cargo strengthens the airport value proposition
Cargo is becoming a central part of the airport growth story as supply chains evolve and businesses place greater emphasis on speed, reliability and resilience. The continued expansion of e-commerce and changing trade patterns are increasing demand for airports with modern cargo facilities and strong international connectivity.

“Cargo has become a much more important contributor to airport economics, especially as e-commerce demands faster and more reliable delivery networks. Airports with modern cargo infrastructure and strong international connectivity are positioned to capture growing freight volumes even as supply chains continue to adapt,” Holmes said.

Global trade flows are also reshaping the role of airports as logistics platforms. Facilities that combine passenger connectivity, cargo infrastructure and access to wider transport networks are increasingly positioned as critical links in international commerce, particularly as companies diversify supply chains.

“Global trade routes continue to evolve as companies diversify supply chains and governments prioritize resilience alongside efficiency. Airports that serve as strategic international gateways and multimodal logistics hubs should remain well positioned to benefit from these long-term shifts,” Holmes added.

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