Kelowna International Airport (YLW) is a money-making machine.
Over $2 billion dollars ($2.076 to be exact) in economic output was generated by the City-owned airport in 2024, according to a study by the City of Kelowna.
Economic output is calculated by taking the aggregate of labour income and other expenditures which can be considered as the contribution to GDP.
The study in question will be handed to Kelowna City council on Monday. In the recommendation to council, the city manager said the economic impact study can be used to gain support for the “preservation and enhancement of airport activities” which can provide background for future business planning and support the idea of new capital funding projects for the airport.
“Understanding the economic impact of Kelowna International Airport is important for increasing business and community awareness of the activities taking place at YLW and their contribution to the economic well-being of the Central Okanagan Valley,” the recommendation reads.
The study found that economic output has increased by 163 per cent from the last time period a study at the airport reported, which is 2014.
More people have been travelling through YLW in 2024 compared to 10-years ago as well. In 2014, YLW recorded just 1.6 million travellers, while 10 years later that number has increased to 2.1 million passengers.
Operations at YLW also now support over 9,000 direct and indirect jobs which generates $584 million in labour income. Other spending accounts for the rest of the $1.4 billion.
Spending by tourists accounted for most of the economic activity and labour income generated by the airport at 36 per cent and 49 per cent respectively.
The air carriers and their staff spending money in the community is the second largest driver of economic output, responsible for 22 per cent of economic output. The study also suggests a number of new regular routes the airport could establish, and estimates the amount of economic output that would be gained by doing so.
For example, a new daily service between Kelowna and Denver using a Boeing B737 MAX would support 256 FTEs of employment as well as generate $52.34 million in economic output.
A route daily route between Kelowna and Cancun using an Airbus 220-300 would add $41 million in economic output and 183 FTEs.
Finally, an Airbus A321XLR that runs four times a week between Kelowna and Heathrow airport in London would generate $31 million in economic output and 146 FTEs.
The study was conducted with data gathered from 96 airport business partners as well as data from Statistics Canada.
YLW continues to expand. The airport is currently in the midst of the first phase of expansion to its terminal building, which is set to be completed soon after almost three years of construction. The second phase is anticipated to start construction in 2030.