Assessing the Electrification of Aviation’s Impact on the Airport and Airway Trust Fund

The electrification of aviation presents significant challenges to the Airport and Airway Trust Fund and the broader aviation ecosystem, particularly for small and rural airports. As aircraft transition to electric power, the Airport and Airway Trust Fund will lose crucial income from fuel taxes, impacting funding for smaller airports. This shift may lead to diminished operational viability and negative effects on local economies for small, rural, underrepresented, and economically disadvantaged airports. The Federal Aviation Administration anticipates Advanced Air Mobility services to begin between 2025-2027, with gradual growth expected from 2030. To ensure successful transition and scalability of Advanced Air Mobility, stakeholders must determine how an electrified aviation system will participate in the Airport and Airway Trust Fund and mitigate lost revenue throughout the evolution to electrification. Electrified aviation when converted to Aviation Gas equivalent U.S. gallons represents a loss of approximately 64% annual Aviation Gasoline equivalent gallons, fuel sales, and Airport and Airway Trust Fund excise tax for both LOW and BASE case forecasts. Key challenges include developing a taxation and fee structure for Advanced Aircraft Mobility participation, addressing energy demands for various Advanced Air Mobility aircraft types and missions, and mitigating the economic impact of losing legacy fueling enterprises at airports. To maintain a robust and inclusive air transportation system, policymakers must prioritize the unique challenges of small, rural, and economically disadvantaged airports while implementing the new electrification paradigm. Collaboration between government, industry, and academia, similar to the NASA-led Advanced Air Mobility working group, will be crucial in addressing these significant issues and advancing this nascent technology.