Thursday, March 27, 2025

CDOT: Airport's impact reaches new heights

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OUTLOOK MONTROSE | Thursday, March 27, 2025

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CDOT: Airport's impact reaches new heights
CDOT: Airport's impact reaches new heights
Thursday 3/27 at 12:00am

Montrose Regional Airport's ever-soaring passenger numbers help drive the regional economy — and when it comes to the airport and the aviation industry it supports, they are only part of a robust picture. Between commercial and general aviation, with the jobs and payroll those things support, the airport generated $713.1 million of the $68.9 billion in aviation business revenue for Colorado.

"We're very fortunate in Montrose. Most communities of our size in America do not have the amount of air service we have and provide air service to the citizens of Montrose. It's definitely a significant impact to the citizens of the region," Montrose County Aviation Director Lloyd Arnold said.

The Colorado Department of Aviation Division of Aeronautics prepares economic impact reports every five years for the state's 66 public-use airports. It recently released numbers for the study being published this year (based on 2018-2023 numbers). Taking airport administration, business tenants, construction, cargo, and out-of-state visitor spending, Colorado's aviation system supports more than 348,000 jobs and $23.5 billion in payroll. The activity generates almost $69 billion in business revenue and contributes $40.3 billion in value added revenue to the state economy. Value added is the total contribution to the state's gross product from payroll, profits and business taxes paid. Business revenues refer to the total spending for administration, capital projects, tenant sales and services and visitor spending in hospitality-related sectors; it is also called output and economic impact. The economic impact comes from direct effects and multiplier effects (spending on goods and services, as well as workers spending their pay at local and regional businesses).

Montrose Regional supports 4,323 jobs; generates $231 million in payroll, $421 million in total value added and $713.1 million in total business revenues.

"It's just a multiplier of everything that has to do with travel. The fact that we have one of the nicest airports on the Western Slope, if not the nicest, benefits all of those indirect business," Montrose County Economic Development Corp. Executive Director Sandy Head said. "The fact that we're on the map as far as our outdoor recreation businesses, those businesses that fly people in for meetings and for tours, all of the recreational activities we have. We service such a large area," she also cited.

The Montrose Regional numbers are up substantially over those in the last published CDOT report of 2020 (drawing from 2013-2018 stats).

Total business revenue reported in 2020 was about $327.26 million, with the overall economic impact placed at about $627.46 million.

"I think the (current) number is probably a little low," Arnold said of the 2025 figures. "The money we have coming through the airport, the turnover of the dollars in the community. The $713 million is probably low. I think it's low, but it's probably accurate based on their metrics."

Passengers getting off planes and onto planes in Montrose increased again in 2024; deplanements and enplanements have increased steadily year over year. According to report data, there were 13,845 flights into and out of Montrose in 2023, from and to 621 destinations in 49 states. The passengers on those flights are spending money.

"We had a 40,000 increase through the terminal in just 2024. If you account for visitor spending, capital improvements, the turnover of that dollar in the community is substantial," Arnold said.

Hopkins Field, in Nucla, does not have commercial aviation, but its general aviation services support 10 jobs, a payroll of $278,000, $546,000 in value added and $907,000 in total business revenue.

"Hopkins Field impacts the county also and provides a positive impact to the county. It also provides a positive asset when we have fires, when we have medical flights, and when we have business travel into that area," said Arnold.

At the time the 2025 impact report was prepared, Montrose Regional was served by four commercial airlines, three of which had year-round service. It also offers general (non-commercial) aviation service and draws visitors because of the thriving outdoor economy; supports military flight trainings and hosts the annual Colorado Tribute to Aviation. The airport has undertaken significant capital improvement projects, including the $40 million terminal expansion, completed in 2023, which the state noted provided several jobs. The airport's economic reach stretches beyond tourism and lodging: it also supports business and industry by making air transportation available.

"This accessibility enhances the region's connectivity to national and international markets, facilitating trade and business opportunities," the 2025 study said. It lists as top activities commercial service, recreation, corporate/business activity, recreational flying and military activities.

Capital improvements at state airports led to substantial funding increases, the firm that prepared the impact reports said in a February webinar. Between the last report and the current one, Federal Aviation Administration funding for airports climbed from $86 million to $290 million. The report authors noted increased construction costs nationwide, as well as increased labor costs and workforce shortages, along with record inflation. Markets with a heavy tourism base, like Montrose, saw strong growth in post-COVID leisure travel, said Patrick Heaton, deputy project manager for the CDOT study prepared by Kimley-Horn. "I know a lot of our Western Slope airports have reported record traffic in the last years," said Heaton. On the flip side, those airports supporting a lot of business-oriented traffic have seen changes due to a shift to virtual work and meetings.

In Montrose, $221.5 million comes from on-airport activities and $491.6 million is from visitor spending. "The majority of travel here in Montrose is leisure travel. I think business travel is increasing all the time, but certainly, the majority of travel is leisure travel at this time," Arnold said.

"Things are going well at the airport. We had another record year. We are on pace to have a really positive year in 2025."

That includes the Tribute to Aviation in September and the upcoming addition of more jet bridges, as well as taxiway reconstruction.

Arnold credited ongoing commissioner support for the performance of the airport. "It's something we've had here for years now and it's helped the airport to grow."

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