The economic impact of Luxembourg airport; a quickscan

This quick scan quantifies the economic impact of Luxembourg airport. LUX’s total economic impact within Luxembourg amounts to approximately €6.5 billion in gross domestic product and 55 thousand jobs. The additional impact on neighbouring countries adds €2.7 billion and 35 thousand jobs. 

Method
This Quick Scan is based on the method, data and research from a recent aviation impact assessment study (SEO, 2024) that calculated the economic impact of +500 European airports between 2004-2019. Here, this analysis is rescoped to consider the economic impact of LUX airport connectivity within Luxembourg and in its neighbouring countries. The economic impact analysis relies on the widely recognized Input-Output model by Nobel laureate Leontief’s. This approach thereby uses a macroeconomic method to calculate the ripple effects of spending and investments at the airport on the national economy. 

Outcome
The total economic impact of LUX (direct, indirect, induced and catalytic) amounts to approximately €9.2 billion in GDP and 90 thousand jobs. The direct impact at the airport is €1.6 billion and 7000 jobs. The indirect impact with €2.2 billion in GDP and 24 thousand jobs, with one-quarter of this economic activity within Luxembourg and the rest in other (neighbouring) countries. The induced impact of wage spending accounts for the largest share of the impact with €2.4 billion in GDP and 30 thousand jobs. Air connectivity facilitates tourism responsible for €1.7 billion in GDP and 24 thousand jobs. Additionally, the airports’ catalytic impact from productivity effects amounts to €1.1 billion and is linked to 4.5 thousand jobs.