Airport Experience® News - Conference Issue 2026

PANYNJ Changes Across the country, increases agreed to by New York Gov. Kathy Hochul, New Jersey Gov. Phil Murphy and the Port Authority of New York and New Jersey (PANYNJ) in late 2024 went into effect in 2025 at John F. Kennedy International Airport (JFK) , Newark Liberty International Airport (EWR) and LaGuardia (LGA) . The agreement called for three increases of 75 cents an hour in January 2025, July 2025 and January 2026. The Port Authority had most recently expanded the minimum wage in 2018, to $19 per hour as of September 2023. The late 2024 agreement also calls for automatic annual increases beginning Jan. 1, 2027 tied to the Consumer Price Index, with an automatic bump to $25 per hour in September 2032, if that level has not been achieved. “Today we are taking a significant step forward in ensuring that the hardworking individuals who serve in the region’s airports are paid fairly and equitably for their contributions,” Hochul said in a statement at the time. To offset the increased costs, PANYNJ increased its pricing policy from street plus-10% to street-plus-15% and will allow concessionaires to add an employee benefits and retention surcharge not to exceed 3% of a customer’s pre-tax bill.

Above: NY Gov. Kathy Hochul and NJ Gov. Phil Murphy supported significant increases for airport workers across the Port Authority of New York and New Jersey.

The 2025 increase might not be the last the industry hears of increases in New York. Weddig says he’s also monitoring New York now as Zohran Mamdani starts his term as the city’s new mayor. Mamdani campaigned on the idea of raising the city’s minimum wage to $30 per hour by 2030. “It’s not completely in our space, but it would certainly impact wages at the airport,” Weddig says. “This is above the current PANYNJ rates.” Increases Impacting Airlines Weddig says he’s been hearing and seeing additional cities across the country consider living wage increases. It’s gotten

to the point, he says, where even airlines are concerned. Allegiant Airlines announced plans in September to cease operations at LAX due to high costs and move its Los Angeles flights to Hollywood Burbank Airport (BUR) starting in 2026. Legacy carriers are unlikely to leave LAX, Weddig says, but if low-cost carriers do, it will reduce competition and could lead to higher fares as airports potentially raise costs to airlines to replace revenue from potential concessions rent decreases. “They’re going to catch it,” Weddig says, “one way or another.” While speaking on a panel at Airports Council International – North Amerca’s Business of Airports conference, David (DJ) Anderson, director of properties at American Airlines , said he’s following these living wage ordinances closely. What concerns him is that as the expense pressures rise for operators, they may “bid a little bit lower on either percentage of gross or maybe lower (Minimum Annual Guarantees),” he says. “That’s what I’m a little concerned about,” he says. “That translates to the bottom line, whether your airport has direct revenue sharing with the airlines or not. Bottom line is it takes away money from the airport operators.”

Left: Workers at the big three airports operated by Port Authority of New York and New Jersey (rendering of the New Terminal 1 pictured) will make $25 per hour no later than 2032 under a wage agreement reached in late 2024.

20

AX NEWS MARCH 2026