PANYNJ board of commissioners approved annual minimum wage increases for airport workers tied to inflation

• Policy Provides Annual Cost-of-Living Increases to Airport Minimum Wage, Increasing Worker Retention and Improving Customer Service
• Plan Follows Precedent Established by New York and New Jersey, Tying Minimum Wages to Consumer Price Index
• Airport Stores and Restaurants Could Offset Increased Costs Through Revision to Concession Pricing Policy

Following a month-long public comment period, the Port Authority of New York and New Jersey Board of Commissioners today approved an expanded minimum wage policy at John F. Kennedy International, LaGuardia and Newark Liberty International airports that provides annual increases to the wages of thousands of airport workers starting in January 2025, with automatic increases tied to the regional cost of living, consistent with the minimum wage policies of the states of New York and New Jersey. The Port Authority Board of Commissioners last adopted a new minimum wage policy in 2018, which brought the wages of airport workers to a minimum of $19 per hour as of September 2023 but did not provide for any further increases without additional Board action.

The new policy provides for three upfront increases of $0.75 in January 2025, July 2025, and January 2026. Beginning Jan. 1, 2027, annual increases will be tied to the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) three-year moving average for the Northeast region, consistent with the two states’ minimum wage policies. The policy provides for the wage to automatically increase to $25 in September 2032 if that level has not already been reached through the annual CPI increases as of January 2032.

The wage increase for airport workers is highly beneficial in helping to attract and retain more skilled labor to airport businesses, leading to improved customer experiences within the airports. A fairly compensated airport workforce leads to reduced turnover, resulting in a well-trained and experienced work force that can help to provide stable airport operations and an important supplemental security presence. The Port Authority saw significant improvements in customer satisfaction following the previous minimum wage increases beginning in 2018. A majority of comments received by the Port Authority during the month-long public comment period generally supported a wage increase.

“Our airports are not just transportation hubs but also key drivers of regional prosperity, supporting local communities and local workforces,” said Port Authority Chairman Kevin O’Toole. “By introducing structured wage increases for airport personnel, we can boost worker spirits and in turn, boost customer service, ultimately delivering even better experiences for the millions who travel through our airports annually.”

“This policy underscores our respect for the hard work of dedicated airport employees who serve the traveling public across our region,” said Port Authority Executive Director Rick Cotton. “Offering competitive wages will lead to greater job satisfaction, stronger workforce stability and improved security, ensuring that the passengers traveling through our world-class airports can also enjoy world-class service at every point in their journey.”

To offset the added cost to businesses operating stores and restaurants at Port Authority airports, the Port Authority Board of Commissioners also approved a revision to the agency’s policy that regulates concession pricing at the agency’s airports. The revised policy will allow concessionaires to charge prices to their customers at a level not to exceed 15 percent more than the local, off-airport “street prices” for comparable products. This rate is consistent with several other U.S. airports that share similar regulations seeking to set rate ceilings and prevent price gouging. The Port Authority will also allow airport concessionaires to add an employee benefits and retention surcharge not to exceed 3 percent of a customer’s pre-tax bill.

The adjustments to pricing reflect the added costs of doing business in the airport environment, which include unique factors such as additional security, training, logistics, and higher construction expenses. Per Airports Council International North America, more than 80 percent of U.S. airports employ a “street pricing plus” policy to allow concessionaires to offset those added costs. The previous policy capped all concession prices at local, off-airport “street prices” plus a maximum of 10 percent. A majority of comments received during the month-long public comment period specifically relating to the street pricing policy change were in support.

To ensure compliance with fair market pricing policy for goods sold at airport concessionaires, the Port Authority conducts routine monitoring to enforce compliance of the agency’s street pricing standards. Additionally, the agency reviews customer complaints from feedback forms and social media. If a concessionaire is found in violation of the pricing policy, the Port Authority, terminal operators and/or concessions management companies may take corrective action to ensure compliance.

The Port Authority’s redevelopment of its airports prioritizes significant improvements to customer service and experience, underscoring the need for highly skilled workers employed at its airports. So far, the agency’s focus in transforming its airports into best-in-class gateways has yielded internationally recognized accolades. These include the 2024 Skytrax honor naming Newark Liberty’s Terminal A as the world’s best new airport terminal, an honor similar to Skytrax’s award in 2023 to LaGuardia Airport’s Terminal B, as well as Skytrax’s highest rating at five stars for facilities, service and customer experience for both terminals at the two Port Authority airports based on traveler surveys. 

The need for additional skilled airport workers will grow in the coming years as new or expanded terminals open as part of the Port Authority’s multi-billion-dollar redevelopment of John F. Kennedy International (JFK) and Newark Liberty International airports. Within JFK’s $19 billion transformation, terminals 1 and 6 are scheduled to open in 2026, while terminals 4 and 8 are in the process of expansions and renovations that include new retail overhauls and opportunities for more airport businesses. At Newark Liberty, further redevelopment work is underway with the release of the Port Authority’s EWR Vision plan following the 2023 opening of the new Terminal A.