Airport Experience® News - Post-Conference Issue 2026

APRIL/MAY 2026 / V24 N270

RECAP OF THE 2026 AX CONFERENCE

AXN’S 2026 CEO ROUNDTABLE

AIRPORTS PREP FOR eVTOL AIRCRAFT

BWI’S SHANNETTA GRIFFIN SHARES OUTLOOK

Your Partner of Choice for Dining and Retail Best Overall Restaurateur Best Overall Retailer Retailer with the Highest Regard for Customer Service Restaurateur with the Highest Regard for Customer Service (2025) We’re proud to celebrate these accomplishments, which are built on strong partnerships with our incredible airport partners, dedicated brand collaborators, and the more than 10,000 passionate team members across North America.

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16 CEO Insights At the 2026 AX Conference, CEOs from six leading concessions companies gathered for a closed-door roundtable discussion with AXN on the key issues facing the industry. Here’s what they had to say. 20 eVTOL Aspirations No one knows exactly when or how, but eVTOL (electric vertical takeoff and landing) aircraft are coming to U.S. airspace. Some commercial airports are getting ready. 25 Bragging Rights Check out which individuals, companies and brands took home trophies from the 2026 AX Awards Gala. 28 Growth Strategies Tackling issues ranging from high labor costs to balancing lounge and F&B needs in airports, key AXC sessions featured experts who strategized on how to improve profitability for all stakeholders at the airport. 34 New Opportunities Business growth strategies, digital engagement, and new concessions prospects were all discussed in AXC sessions focused on improving the traveler experience. 38 Director-To-Director In a shift from the typical panel format, eight airport directors – four sets of two directors each – took the stage for interview-style conversations in front of the AXC audience. 41 Women In Action The Women In Leadership Breakfast at AXC sold out once again. The panel of industry leaders shared their perspectives on resilience, relationships and a host of other issues. 44 Conference Snaps Check out AXC 2026 as captured by AXN’s photographer.

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4 Letter From The Publisher 6 Data Check

Data from Future Partners shows waning interest in visiting the U.S. from international travelers, especially those from Europe and Canada. 8 Latest Buzz The Upgrade SEA initiative at Seattle-Tacoma International Airport includes a C Concourse expansion scheduled to open this summer, as well as other projects. 12 Director’s Chair

48 Industry Insights Gensler’s Ty Osbaugh shares his firm’s vision for creating a future airport that is entirely experience-driven from curb to gate.

51 Advertising Index 52 Before You Take Off

A year ago, Shannetta Griffin transitioned from a leadership role within the Federal Aviation Administration to the

Young people often don’t envision a career in airport hospitality. Concessions International is seeking to change that with the launch of its immersive career exposure program.

helm of Baltimore/Washington International Thurgood Marshall Airport. Now, as executive director and CEO of the Maryland Aviation Administration, she outlines her vision for growth at BWI.

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AX NEWS APRIL/MAY 2026

Andrew Tellijohn Senior Reporter Sally Kral Contributing Writer Sarah Beling Contributing Writer

TEAM

Barbara McCarter Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Katy Welch Senior Marketing Manager Tristan Lueck Marketing Coordinator Emma Vail Marketing Coordinator AXN ADVISORY GROUP Kim Becker, San Diego International Airport Derryl Benton, Avolta Zenola Campbell, Dallas/Fort Worth International Airport Bryant Francis, Cleveland Hopkins International Airport Mark Gale, Fort Lauderdale-Hollywood International Airport Eric Johnson, Nashville International Airport Roddy McOwan, WH Smith North America Gregg Paradies, Paradies Lagardère Kevin Westlye, High Flying Foods

Jeff Davis Executive Vice President, Retail and Specialty Melissa Montes Vice President/Publisher Carol Ward

Editor-in-Chief Nicole Watson Business Development Manager Sally Kral Contributing Writer Sarah Beling Contributing Writer John Quinnies Contributing Writer Barbara McCarter Senior Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Katy Welch Senior Marketing Manager Amanda Litwack Senior Digital Marketing Coordinator Samantha Tamberino Marketing Coordinator

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APRIL/MAY 2026

Dear Valued Readers,

Welcome to the post-conference issue of Airport Experience News. Thank you for being part of an exceptional Airport Experience Conference. The energy was unmistakable, a community showing up, leaning in, and moving this industry forward together. This issue will allow you to relive some of the most dynamic conference moments, from the Women in Leadership discussion to the Schmooze sessions to the newly formatted Directors’ session. At the AX Awards Gala, the industry’s best were recognized in an unforgettable celebration of excellence. Check out all of the conference coverage in the following pages, and don’t forget to peruse the “AXC in Images” section on page 44 for a glimpse at some of the memorable moments captured by our photographer. One additional highlight of this issue is coverage of the CEO Roundtable. Behind closed doors at AXC, AX Editor Carol Ward and I convened CEOs from six leading concessions companies for an in-depth discussion on key challenges facing the industry. The CEOs were frank and forthcoming, and Carol and I are truly grateful to the leaders who shared so openly. You can read all about it on page 16. As we close out AXC 2026, we extend our sincere thanks to our partners at Nashville International Airport and to all our sponsors, exhibitors and supporters for helping deliver a record-setting conference. A big thank you to the AX Team as well – together, we pulled together another amazing AXC! We hope this issue serves as both a reflection and a spark. Our team is already back in the lab, building toward 2027 in San Diego, where the next chapter is taking shape. In the meantime, our timely media suite will keep this community connected between events, bringing the conversations

and insights forward all year long. Because when this industry comes together, we lead it forward together.

Cheers and thanks,

Melissa K. Montes Vice President & Publisher Airport Experience News mel@airportxnews.com

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AX NEWS APRIL/MAY 2026

WE’RE THE REASON THEY ARRIVE EARLY. Trusted Brands. Local Character. Curated for You. Hudson is the travel retailer delivering the brands travelers love and the local fl avor they want to discover.

To learn how Hudson makes the journey as exciting as the destination, contact Amy Dunne, Business Development, at amy.dunne@hmshost.com.

DATA CHECK

THE U.S. WELCOME MAT? Future Partners Data Shows Hesitancy From International Visitors

BY CAROL WARD

U.S. Opportunity: Interest in Visiting the U.S. in the Next 2 Years - 2025 vs. 2026 (Change By Market)

Interested in 2025

Interested in 2026

100

94.9%

91.3%

85.5%

80

84.2%

83.6%

81.7%

82.4%

78.3%

75.9%

75.3%

75.9%

71.3%

69.9%

68.6%

68.3%

66.1%

60

64.8%

64.4%

62.3%

58.4%

57.5%

58.2%

57.4%

57.1%

55.4%

54.5%

48.6%

40

42.9%

42.1%

39.1%

34.1%

20

24.6%

0

India

Brazil

Mexico

Argentina

China

Japan

Italy

United Kingdom

Colombia

South Korea

Spain

Canada

France

Germany

Australia

Netherlands

Future Partners Source: The State of the International Traveler 2026

he pool of travelers considering long-haul international trips to the United States is narrowing,

People from all major markets indicated less interest in visiting the U.S., but the interest gap was most pronounced in European countries and Canada. Just 42.9% of Canadians responding to this year’s survey expressed interest, down from 68.6% a year ago. Interest from travelers from France, Spain, Italy and the Netherlands dropped by 20 or more percentage points in the survey for 2026, compared to 2025. In large measure, the negative change in perception of the U.S. overall was most pronounced in those same countries. A majority of survey respondents from Netherlands, Canada, Australia, Germany, Spain, France, the U.K., Italy and Japan said their perception had declined. Conversely, a majority of 36.1% 25.3% 14.0%

T

according to new data released from Future Partners . Results from Future Partners’ The State of the International Traveler Study reveal clear shifts in how foreigners view travel to the United States. Across global feeder markets, both interest in and likelihood of visiting the U.S. show signs of softening. Only 36.1% of survey respondents said they are likely to visit the U.S. in the next two years, a sharp drop from the 53.2% of survey respondents who expressed likelihood last year. Those who stated they will not visit jumped to 14%, from 5% a year ago, and respondents who say they are unlikely to visit increased to 25.3%, from 16.9% in 2025. 47.2% 51.0% 49.2% 46.2% 53.2% 20.0% 18.1% 19.2% 22.2% 16.9% Unlikely to Visit

U.S. Opportunity: Likelihood of Visiting the U.S. in the Next 2 Years - 2018-2026 (Total Aggregate)

Likely to Visit

Will Not Visit

60%

50%

45.9%

44.2%

44.1%

40%

30%

23.2%

22.1%

22.5%

20%

10%

7.5%

7.2%

6

5.7%

5.9%

5.8%

6.9%

5.4%

5.0%

AX NEWS APRIL/MAY 2026 0%

2018

2019

2020

2021

2022

2023

2024

2025

2026

DATA CHECK

of foreigners from non-visa waiver countries are less willing to travel to the U.S. due to the $250 visa integrity fee. 57.5%

of foreigners are less interested in visiting the U.S. due to higher national park fees. 43.1%

75.3% of foreigners are less interested in 35.2%

U.S. Opportunity: Interest in Visiting the U.S. in the Next 2 Years - 2025 vs. 2026 (Change By Market)

Interested in 2025

Interested in 2026

100

94.9%

91.3%

85.5%

80

84.2%

83.6%

81.7%

82.4%

78.3%

75.9%

75.9%

71.3%

69.9%

68.3% visiting the U.S. due to social media screening requirements. 68.6% 55.4% 48.6%

66.1%

60

64.8%

64.4%

62.3%

58.4%

57.5%

58.2%

57.4%

57.1%

54.5%

40

42.9%

42.1%

39.1%

34.1%

20

24.6%

0

India

Brazil

Mexico

Argentina

China

Japan

Italy

United Kingdom

Colombia

South Korea

Spain

Canada

France

Germany

Australia

Netherlands

respondents from Brazil, South Korea, Mexico, Argentina, China and India all had improved perceptions of the U.S. “This matters because today’s global travelers are more selective,” Future Partners said in its report on the survey. “Rising costs, geopolitical uncertainty, and expanding destination choice

mean travelers are actively filtering destinations, not aspirationally bookmarking them.” Among other findings, the survey found that National Park fees for foreign visitors have reduced interest in visiting the U.S. for 43.1% of international travelers surveyed, while social media screening requirements have dampened interest for 35.2%. Among non-visa waiver countries, 57.5% agree that the new $250 visa integrity fee is actively reducing their willingness to travel to the U.S. “In a global context where competing destinations are streamlining entry, expanding visa-free access, and messaging openness, these policies reinforce a perception of friction, scrutiny, and added cost; attributes that work against the U.S. brand promise of welcome and freedom,” Future Partners said. “The U.S. still has extraordinary experiential equity but converting that equity into visits now demands fresher insights, tighter strategies, and a willingness to confront uncomfortable realities shaping global perception.”

Future Partners Source: The State of the International Traveler 2026

U.S. Opportunity: Likelihood of Visiting the U.S. in the Next 2 Years - 2018-2026 (Total Aggregate)

Likely to Visit

Unlikely to Visit

Will Not Visit

60%

53.2%

51.0% 49.2%

47.2%

50%

46.2%

45.9%

44.2%

44.1%

40%

36.1%

30%

23.2%

22.2%

22.1%

22.5%

25.3%

19.2%

20.0% 18.1%

16.9%

20%

14.0%

10%

7.5%

7.2%

5.7%

5.9%

5.8%

6.9%

5.4%

5.0%

0%

2018

2019

2020

2021

2022

2023

2024

2025

2026

Future Partners Source: The State of the International Traveler 2026

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AX NEWS APRIL/MAY 2026

LATEST BUZZ

UPGRADE SEA Seattle-Tacoma International Airport Prepares for Its Biggest Summer Yet

BY DAVID GORDON

eattle-Tacoma International Airport (SEA) is in the final stretch of a multi-year, ambitious

S

capital program. Upgrade SEA, a $5 billion initiative, has been remaking SEA from the roadway to the gate for years. This summer, the biggest pieces land. “SEA is back to pre-pandemic level growth,” says Perry Cooper, media relations manager at SEA. With an estimated 750,000 visitors expected during the five week World Cup window alone, the airport is racing to finish its two biggest remaining projects before the first match kicks off in June. The C Concourse Expansion and a full roadway overhaul are both on track to open in time, adding critical capacity and a vastly improved experience for the surge of travelers headed to Seattle this summer. The airport has continued operating at full capacity throughout the multi-year project. “It’s been a rolling capital project,” Cooper says. More than 120 individual projects have been running concurrently, among them restroom renovations, baggage optimization, an S Concourse evolution, a Concourse A lounge expansion and an automated parking guidance system. The C Concourse Expansion is the marquee opening this summer. “It’s a big difference from a customer service standpoint,” Cooper says. The project transforms a former office and concessions space tucked between C and D Concourses

Right: SEA’s C Concourse Expansion, set to be completed this summer, transforms a former office and concessions space tucked between C and D Concourses into a 226,530-square-foot facility across four new floors.

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AX NEWS APRIL/MAY 2026

LATEST BUZZ

into a 226,530-square-foot facility across four new floors, up from 81,000 square feet. Construction kicked off in 2023, topped out at the end of 2024 and enclosed the space through 2025. Now it’s time to open. The constraint that shaped it is one SEA knows well. “We’re really landlocked and we don’t have the ability to expand outwards,” Cooper says. The solution, as with previous expansions of the central terminal and N Concourse, was to build up rather than out. The anchor of the new building is Tree at C, a central gathering space inspired by the region’s public and farmers markets, with a tiered open amphitheater, a stage for live music and airfield views. Above it, additional dining and retail draw passengers upward toward the Lookout at C, a glass encased deck with unobstructed views of the airfield and the Olympic Mountains, open to all travelers. Tenants opening in the new concourse include Great State Burger , Nanny’s BBQ, Olympia Coffee, Buffalo Wild Wings Go, Chili’s, Seattle Macaron Co. and Wanderlust, among others. An Alaska Airlines lounge of more than 20,000 square feet anchors the upper level. The building

also includes an interfaith prayer and meditation room, a nursing suite, a sensory room and a pet relief area, along with office space for airport businesses, airlines and the TSA. The C Concourse design, led by The Miller Hull Partnership and Woods Bagot , pursues LEED Gold certification. Sustainability features include fossil fuel-free systems, rooftop solar panels, electrochromic glazing, low-flow water fixtures and biophilic design strategies. “There’s more natural light coming in, environmentally friendly products—we’re really excited for this,” Cooper says. An artist-in-residence program, developed in partnership with Pilchuck Glass School and Tacoma’s Museum of Glass , produced original glass artwork for the space. Selected artists include Crystal Worl, Fumi Amano, Jaq Chartier and Marco Brambilla, among others. Cooper places the C Concourse within SEA’s longer transformation arc. “We talk about how all of this is taking us from 1970s design and customer experience to modern day. The international arrivals and N Concourse are good examples of that, and the C Concourse will reflect that too.”

Above: The anchor of the new building is Tree at C, a central gathering space inspired by the region’s public and farmers markets, with a tiered open amphitheater, a stage for live music and airfield views.

With the C Concourse opening, that modernization reaches its most ambitious expression yet. The roadway improvements project, set to reach final completion before July, addresses the first thing a passenger encounters before entering the terminal. The project shifts the entire roadway to the west, running a new retaining wall against the airfield boundary. “To highlight how little space we have to move, we had to take out a hill that sloped down to the roadway,” Cooper says. Two new lanes are added to the terminal approach from the north. One routes directly into the airport garage. The other serves hotel and shuttle traffic and delivers rideshare passengers to the third floor entry, pulling specific vehicles out of the lower drive and easing congestion at the curb. The project also brings art to the drive. A collaborative mosaic by artists Ed Marquand and Angelina Villalobos will be installed on the new retaining wall along

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AX NEWS APRIL/MAY 2026

LATEST BUZZ

Left: Completed in January 2026, the SEA Gateway Project transformed the north end of the main terminal. (North Main Terminal Credit HOK and Sozinho Imagery)

Keith Hui, regional leader of aviation and transportation at HOK , the global architecture and design firm, led the design. As Alaska Airlines expands international service following its acquisition of Hawaiian Airlines , the north end is seeing more travelers from Asia and Europe who need intuitive, easy-to-navigate spaces. “In an international environment, clear wayfinding is essential for multicultural and multilingual passengers,” Hui says. “We prioritized generous circulation space, expanded queuing areas and strong sightlines so travelers can easily understand the next step in their journey.” To root the space in its region, HOK drew from the Pacific Northwest. “Warm wood tones and locally sourced artwork reflect Seattle’s character while creating a calm, welcoming atmosphere,” Hui says. The design also integrates advanced technology consistent with leading global airports. Regional identity and high performance work in tandem. That approach built on lessons from earlier work at SEA. “Each project at SEA builds on the last,” Hui says. The Concourse D Annex established a regional identity through its exposed timber structure and a ramp connecting two floors. “With the SEA Gateway Project, the goal has been to create a seamless journey from check-in through security for Alaska Airlines passengers in the North Main Terminal.” “Open, more light, more space, better customer experience is what drove all these designs,” Cooper says. “Those guidelines go to everyone who bids on each project. We want everything throughout the airport to have that same look and feel.” Building a major airport while operating it at full capacity is a feat few travelers fully appreciate. At SEA, that tension has defined daily life for years. Everything is now converging at once. Former SEA managing director Lance Lyttle, now director at Orlando International Airport , once described the challenge of building at SEA as “performing heart surgery on a long-distance runner during a race.” The race isn’t over. But SEA is rounding the final turn.

the upper Departures Drive, coming into view as travelers round the corner into the terminal. Along the lower Arrivals Drive, Dutch artist Sabine Marcelis is contributing a glass color gradient installation on the rental car shuttle bus canopy, casting colored light day and night. The Gateway Project The $546 million SEA Gateway Project, another Upgrade SEA milestone, reached completion in January 2026. The collaboration with Alaska Airlines transformed the north end of the main terminal with automated bag drops, a

redesigned security checkpoint, bridge level check-in, upgraded baggage claim devices and eight major public art installations. The Gateway Project’s redesigned checkpoint and expanded lanes have had an immediate impact on passenger flow. “93% have gone through security in 20 minutes or less,” Cooper says of security times, up from 83% a couple of years earlier. Staff feel the shift too. The construction walls and scaffolding that defined the north end for two years are down. “More light, more space, the technology is updated, and it looks more modern,” Cooper says.

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AX NEWS APRIL/MAY 2026

DIRECTOR’S CHAIR

STEERING BWI FORWARD Amidst Traffic Downturn, Griffin Refocuses BWI With Eye On Creating Sense Of Place

BY CAROL WARD

ditor’s Note: Shannetta Griffin is widely known throughout the U.S. aviation industry. From 2021-2025 she served as associate administrator of airports for the Federal Aviation Administration. In April of last year, she returned to airport management, accepting the role of executive director and CEO of the Maryland Aviation Administration. She is responsible for overseeing the management, planning, and operations of Baltimore/Washington International Thurgood Marshall Airport (BWI), Martin State Airport (MTN), and the state’s regional aviation assistance program. AXN’s Carol Ward caught up with Griffin in March, just shy of a year into her new role, to discuss the transition from being a public servant for the federal government to an airport director, and to see how she’s putting her own unique stamp on BWI going forward. E

WARD: Your aviation career has taken many turns, most recently returning to airport management after your stint at the FAA. How has the transition from the federal government back to airports been for you? GRIFFIN: When I left the federal government, I took a little time off, just to decompress. I had a lot of opportunity [but ultimately decided on BWI]. The transition has been good. Anytime you walk into a new organization, especially after leadership has been there for quite some time, it’s just a matter of getting adjusted. Coming out of the FAA, where I was dealing with multiple airports and seeing all the concerns and issues that exist, and then of course the work that I had done for 40-something years, really helped me as I walked into BWI. Even though it’s been almost a year, I’m still learning because the dynamics have changed. I learned right away that we really have a skilled team. We just have to really keep building upon that and just finding ways to continue to make the airport better. WARD: You’ve been there about a year now. Can you give me a big picture of your key goals going forward?

GRIFFIN: In any organization, I feel as though the people are key to success. I really wanted to get to know the staff, certainly the executive staff, and to really understanding what they do, where they saw their gaps were and what their teams looked like as far as expertise. Then I really started to dig into the vision of what’s next for BWI. Everyone knows that Southwest Airlines is our largest partner, but what does that mean for us? There’s a lot of value in that, but certainly it’s important to understand what’s next for the airport when it comes to air service development. And how do I educate the community on what that looks like? I spent a lot of time the first several months meeting all of the staff, going to all of our divisions and talking a little bit about my vision. One of the first things the marketing team did was to have me do a webinar, just talking about my vision around revenue generation, air service development, really building out a strong team and really making sure that we’re following all the proper guidance in regards to the Federal Aviation Administration and the state of Maryland. I [shared that vision] with each of the internal divisions, then I’ve also been on a roadshow, going out

Above: Shannetta Griffin, executive director and CEO, Maryland Aviation Administration. Griffin oversees Baltimore/ Washington International Thurgood Marshall Airport and Martin State Airport.

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AX NEWS APRIL/MAY 2026

DIRECTOR’S CHAIR

into the community to talk about how air service is developed. It’s not just based on what the airport wants, it is truly driven by the communities – where people are flying every day and where they really want to go. I want to focus on building our air service while also building our sense of place? Right now, we have about seven generations of passengers coming through the airport, so innovation and creativity has been another one of my focus areas. We have to think about what the experience looks like for the multiple passengers that we’re having, not just today, but for the future as well. I’m also focused on selling the airport as a gateway. [We contribute] $11.3 billion in economic impact just from the airport itself, and [support] about 170,000 jobs. How do we take the value of the airport and use that as a tool in the conversation around tourism, around bringing in new industries, around making sure that opportunity is happening within the Baltimore area?

We have to be self-sustaining, so revenue generation is very important. Right now, because of everything that’s happening, the passenger numbers are down and that impacts revenue. Parking is down, that impacts revenue. So how can we find new revenue streams and even potentially new types of financial structures? WARD: You mentioned a downturn and passenger traffic. What did you experience in 2025 and what are you expecting in 2026? GRIFFIN: Our passenger traffic was down in 2025 – we finished with 25.2 million passengers, down about 6% from the year before. The biggest impact has been from [changes with] Spirit Airlines . Spirit was our second-largest carrier behind Southwest Airlines, and they experienced a financial downturn and filed for bankruptcy twice. They started taking aircraft out of service. That had a major impact. The other piece was the federal shutdown. During that shutdown period, we had a lot of flights that were canceled. Also, a lot of the federal

Above: BWI experienced a passenger traffic downturn last year, due in part of unpredictability from Spirit Airlines, the airport’s second largest carrier, the 2025 federal government shutdown and the massive number of job eliminations within the federal government.

jobs have been lost in the region. Once you start cutting individuals, they don’t have discretionary income so it’s quite impactful. This year, we are starting to see [passenger numbers] creep just a little bit and flights are being added. Southwest continues to add flights. They’ve made some business decisions that may help as well. WARD: Turning to capital development, I know BWI recently completed the AB Connector and baggage handling upgrade. Did that add capacity? GRIFFIN: The five gates [involved] were Southwest gates that had been there, and this really was a revamp of that area. It did provide additional capacity for baggage, but

13

AX NEWS APRIL/MAY 2026

DIRECTOR’S CHAIR

the bigger piece was making sure that we had connectivity between Concourse A and Concourse B. We were able to add amenities to the gate holds and the areas are wider to better accommodate people with disabilities. Every seat now has access to charging stations. We also have a lot of sustainability features and energy efficient features, like electrochromic

glass, and we have [various amenities] that help create a sense of place. We have a two-story look for our concessionaires. When you’re in the AB Connector, you can look up and see the food court area. WARD: What’s next in terms of capital development? GRIFFIN: Over the next six years, we’ve got about a $957 million capital program.

It has multiple projects, including a lot of state-of-good-repair projects – some of our infrastructure is 75 years old. The next big project that’s identified in our six-year capital program is a new air traffic control tower, as well as expanding on our baggage handling system, along with a CD Connector. WARD: I want to turn to airport concessions. BWI has a new contract with Fraport, who was the incumbent and won the contract after a contentious and protracted battle. What’s the vision for concessions going forward? GRIFFIN: Yes, Fraport Baltimore will be assisting us in renovating, developing, leasing and managing our concessions for the next 23 years. We’re looking at new offerings and just refreshing the program. As to what that’s going to look like, we’re working right now on the transition. The key is we’re really going be looking for high quality food and retail operations for our passengers. We’re maintaining a focus on our small and local concessionaires that are in the program, and we’ll be bringing new ones in. WARD: How are the concessions performing currently? GRIFFIN: When passenger traffic is down, that impacts our concessionaire programs. But certainly we’re working with our developer change some things out, which takes time. The concessions are doing well in the places where they are now, but we’re looking to make some changes [to maximize exposure]. I think the future is bright for our concessionaires and our passengers, and we look forward to introducing new food and retail offerings within this next three years.

Left: The recently completed AB Connector at BWI allows for easy transitions between the A and B Concourses, both heavily utilized by Southwest Airlines. Photo courtesy of Jacobs.

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AX NEWS APRIL/MAY 2026

flynashville.com

VIEW FROM THE HELM In AXN’s CEO Roundtable, Concessions Leaders Discuss Challenges Amidst Unpredictable Environment

Above: Six CEOs of leading concessions companies gathered in February for AXN’s annual CEO Roundtable discussion. Picture left to right are: Matt King of OTG; Huw Crwys-Williams of WHSmith North America; George Mboya of SSP America; Melissa K. Montes of Airport Experience News; Carlos Bernal of Areas USA; Steve Johnson of Avolta North America; and Gregg Paradies of Paradies Lagardère.

BY CAROL WARD AND MELISSA K. MONTES

Editor’s Note: Each year at the Airport Experience Conference, AXN Editor-in Chief Carol Ward and Vice President & Publisher Melissa K. Montes hold a closed-door, roundtable discussion with CEOs from leading concessions companies. The goal is to have a thorough and candid discussion about the challenges they face as they seek to provide extraordinary retail and F&B experiences to travelers. This year, at the 2026 Airport Experience Conference in February, the six executives discussed everything from ongoing wage and labor challenges, to the encroachment of public-use lounges on what has traditionally been F&B and retail concessions territory, to the future of their small business partnerships as the ACDBE program evolves. Participating in the conversation were Carlos Bernal, CEO of Areas USA; Huw Crwys-Williams, CEO of WHSmith North America; Steve Johnson, president and CEO, North America, Avolta; Matt King, CEO of OTG; George Mboya, CEO of SSP America; and Gregg Paradies, president and CEO of Paradies Lagardère. The following is an edited version of the conversation. WARD: I’d like to start with an overview of the latest broad-based industry developments. What has shifted over the past year, and what’s top of mind as we head into the summer travel season? BERNAL: Business has gotten tougher. Unions have gotten much more aggressive. They’ve always been well organized, and now it’s, I’d say, at a completely new level of organization. The numbers are staggering, in terms of the wage rates that we’re paying. It’s tough to make money in the business now.

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PARADIES: The right coast and the left coast are where the major pressure is for all of us. It’s not just the wages, it’s the benefit piece, which is so punitive. The unions are getting tougher in some cases – they are just throwing all the punches they can. Part of the challenge is understanding our business and understanding that the employees should be making the decisions on the union piece. When we look back 12 months, that’s probably been the biggest change. [Initiatives such as] the Olympic wage and the healthy terminal act in New York are putting a lot of pressure on the business model. MBOYA: In the past we covered wage rate [increases] with pricing. Now, wages are getting to a point where you can’t push pricing anymore. And the healthy terminal act is just a kick in the gut. The airports are adding to the pressure by creating these higher wage rate corridors within the airports. One other thing, most industries are finding ways to use AI and technology to cover some [labor needs]. We’re in hospitality and we are serving people. You can only take so many people out of business, so we cannot respond in the same way. BERNAL: If I could just add, I think the unique challenge of our industry is we end up bidding on these businesses… [using a formula of] 3% [cost increases] every year. That’s been inflation historically. But construction costs have gone up 30, 40% since pre-Covid. Labor’s gone up around the same amount. We’re locked into a contract that [restricts pricing to] street plus 10% or street plus 15%, and it doesn’t work. There’s some flexibility from some airports, but I would say most airports dig in and say, ‘no, that’s the deal and we can’t change it’. We talk about being stakeholders, but not all stakeholders are created equal. We’re bearing the burden on our side to offset these historic costs to do business

in the airport. We just need to bring other partners along to share some of the burden. CRWYS-WILLIAMS: This is a capital-heavy industry, and the capital that’s coming into [airport retail and F&B] is private capital. We’re going to have to work out how we get a return on that capital, otherwise it will stop flowing. KING: I’ve been gone [from the industry] for roughly a decade, and it’s gotten harder – it’s gotten a lot more difficult to make money. There will come a point where something gives. It will right itself, but it’s upside down right now. WARD: In our conversation last year, which some of you were a part of, you called the operating environment an unsustainable situation. Are you seeing any movement from your airport partners or others to reset? JOHNSON: From some, yes, but I would say the majority, no. There are some who really have tried to understand our business a bit more, they ask questions. Also, there were several RFPs that came out that had very few bidders, and in some cases, no bidders.

That’s a warning to the airports that we’re not going to invest in deals that don’t make any sense. F&B is a bit harder – it’s more highly capital intensive – and it’s harder to make the money back. When I look at what we bid on last year, I don’t think we bid on more than 50% of the RFPs that hit the street, and that has not been the traditional case. PARADIES: We passed on close to 50% of RFPs. [Regarding our airport partners], I think over the last year we’ve seen more movement than in other years, other than during Covid. We’ve seen the listening is getting better and there are more conversations taking place before the RFP goes out. They want to understand the business so they don’t end up with zero responses, which, of course, is not good for anybody. We are seeing a more open minded approach, but not everywhere. MBOYA: The pressure on capital is a lot. [An F&B buildout for] $2,000 per square foot is now a luxury. We’re talking about $3,000 in some places, depending on the kind of

Right: Gregg Paradies of Paradies Lagardère shares his insights with the group.

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restaurant you’re building. Some of the airports are aging and the structure cannot sustain the newly built restaurant, so you’re tearing everything down to the start and building everything up again, which makes the cost of capital much, much higher. The pressure is such that we are also being selective in our bids. WARD: Adding to the challenges are the tariffs and generally higher prices… MBOYA: In my opinion, the tariffs pale in comparison to labor. Where it becomes a problem is if it has sociopolitical implications that impact significant amounts of travel, because these countries then have a negative opinion of coming to the U.S. For example, look at the transborder travel from Canada to the U.S. Those restaurants on the transborder side are secluded, and many Canadians are not traveling to the U.S., and that means those restaurants are empty. JOHNSON: For F&B I think you’re right. For retail, we’re seeing a bigger hit from tariffs, in certain categories and in duty free. A lot of our goods come from China, and China has one of the highest tariffs, so it hurts. CRWYS-WILLIAMS: On the retail side it is painful, but those costs are ultimately passed on to customers – it’s going to force pricing up. The key for me is just around the uncertainty. MONTES: The airport hospitality industry has long relied on the anchor categories, such as bars, sit-down dining, QSRs. As the demographics of passengers are shifting, are you seeing meaningful changes in where they’re spending, and how is that influencing the concepts and future building that you’re prioritizing? JOHNSON: I think categories are changing. I recently read an interesting stat: in 2024, 6% of the population was on GLP1 (weight loss medication). Today it’s around 13%, and up to 18% of the population in the U.S. has tried it. We have to start recognizing that people are eating differently. [They’re demanding] higher levels of protein, and that’s true whether it be in convenience retail or in F&B. Alcoholic beverage consumption is at its lowest it’s ever been. Traditionally, a lot of our profit margin comes through alcohol, so what are we doing to fulfill that category? It’s not necessarily concept driven. It’s categories within the concepts themselves. We’re all investing in tech as part of the experience for the customer. The new consumer wants

it, they’re asking for it, even though the older consumer hates it. MBOYA: The Gen Z population is moving from cocktails to mocktails – it’s a significant shift. They’re also moving from value to experience. They may go to a lounge just for the experience and bypass the restaurant. JOHNSON: Economists keep talking about this K shaped recovery, and the airlines talk about high profits, which are coming from their business travelers. But there is a still a significant portion in the United States and in the world who comes through our airports who are not experiencing that. I think that we need to remember that consumer as they come through. What are we doing for the consumer who doesn’t have that same economic viability [to purchase high-end food and beverage offerings]? We have to solve that riddle, because it’s coming at us. KING: I agree. I think it’s really bifurcated. The folks that are making a lot of money and spending a lot of money, they don’t care [about pricing], right? But there aren’t nearly as many of them as are the folks that are on the bottom of that K (shaped recovery), so we need to figure out how to serve them while battling high labor costs and [other challenges]. PARADIES: The low-cost customers (flying on LCC airlines) are an important part of our

business, and the LCC business model is at risk now. They’re being squeezed out. We’re concerned, in certain markets, because the LCCs have really driven the traffic in some airports and have created demand. The question is, what will it look like next year, or five years from now? MONTES: The lounges, which attract more affluent travelers, are also upending demand… JOHNSON: We’re seeing a major shift in the business. The number I’ve heard is they do almost $500 million in sales, and that that would put them as number five or six in our industry, as a competitor, but they’re not considered a competitor. The example I always use is, we all bid on these projects or these contracts and we all pay for waterfront property. After the fact the lounges are added. At the end of the day, we’re paying a premium to have incredible real estate and then somebody builds a condo building that blocks the view. They’ve just degraded the value of our real estate by 20%. What is the answer to that? I’m not sure that we’ve figured that out yet.

Below: Carlos Bernal Areas USA makes a point about labor costs being unsustainable, while Steve Johnson of Avolta (l) and Huw Crwys-Williams of WHSmith North America (r) look on.

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PARADIES: Early on, it needs to be part of the planning process, and they should treat it like another food and beverage operation. Airports are under so much pressure to add lounges, and not just large airports. How do they deliver that experience that their customers asking for, and at the same time, be fair to concessionaires who have invested a lot of capital into these facilities? [Airports] are losing a lot of revenue because lounges are paying fixed rent versus percentage rent. BERNAL: I think airports are starting to see that it does impact their revenue. I think an airport has to decide their strategy. Are [concessionaires] part of the travel experience and convenience, or are we a profit generator for the airport? Do they still want us paying 16-18%-plus rent and not have the experience that they’re wanting, potentially, or is it a lower rent and more amenities to provide a better experience? Everybody’s got to have a seat at the table to talk about that. CRWYS-WILLIAMS: We’re committing to a [concessions contract] over 10 to 15 years on a set of assumptions and variables that then, can change radically within two years. But the capital all goes up front. We’ve got to find a way to have more flexible structures going forward that protect against that. PARADIES: Part of our job is educating. Airports want more data, so we need to give them more data in a way that they can understand it, consume it, and share it with their shareholders and city councils, etc. With lounges, specifically, I think we’re all working on how we turn a headwind into a tailwind, because it’s not going away. MBOYA: I think for us as F&B teams, we need to find a way to replicate some of that experience in our restaurants – whether it’s the seating, the music, the ambience of the restaurant – which would help drive some passengers back to our restaurants. However, that would drive up the cost of [buildout], so we’d be looking for longer tenure or lower rents. WARD: Turning to the ACDBE program, the future of the program is unclear. All of you partner with certified firms. How do you see the relationships evolving if the program is diminished or eliminated? MBOYA: It used to be presumed that you have certification, it will continue. You cannot make that presumption anymore. Secondly, it used to be that there used to be one guidance that worked for

almost everybody. Now it’s been left to interpretation, and different airports and different authorities and different bodies are interpreting it differently. Our problem is not that the rules are stringent or relaxed. The problem is the rules are not consistent across the board, and it’s changing at each and every location, so it’s very difficult to comply. And finally, we implement the rules that are instituted by airports. We continue to wait for direction from some of them. We do have contracts with our JV partners that we have to honor, but those contracts may have to be modified in order to comply with what the airports put forth as guidance. JOHNSON: It’s different in each city, but as that city makes a decision with how they want to move forward, we’ll move forward with them. It’s not our program, it’s a program between the airport FAA, and we’re just fulfilling their wishes. Some of these people have been our partners for 20 or 30 years, and they’ll continue to be our partners. Part of the beauty of this industry is the fabric of all the organizations that work within it. I think it would be a shame for us to lose all the small businesses and local businesses that make up what is an airport ecosystem. I hope that it stays where it is today. If we just go to bunch of big players fighting against each other as primes, I’m not sure it’s the airport is a great industry anymore. PARADIES: The emphasis on local will not change, [and partnerships are] how we accomplish it together. HUW CRWYS-WILLIAMS: I agree. And I think small businesses are far better at providing those localized experience and big centralized businesses, so they have a huge

Above: Steve Johnson of Avolta says few or no responses to certain airport concessions RFPs serve as a warning to airports that operators will only invest in deals that make financial sense.

role to play. MONTES: To conclude, I’m wondering, as leaders, what keeps you up at night? PARADIES: What CEOs hate more than bad news is uncertainty. I think going into this year, even though there’s a lot of uncertainty, there’s more certainty that there will be more uncertainty. I think we’re all living it and [are learning] how to be flexible, how to focus on what’s important and not get distracted. JOHNSON: We thought 2025 was going to be our first truly stabilized year post Covid, and it didn’t turn out that way. International traffic fell, Canadian traffic fell. So, there’s definitely uncertainty. How do we manage through inflation, with union wages are going up? We’re not being helped geopolitically, as far as people coming to visit, which is what we all live off of. BERNAL: The big thing that keeps me up at night, is not having our airport partners really truly understand the challenges that we’re facing. The RFPs and the business opportunities, that model hasn’t changed, and there’s not an understanding of the additional costs, whether it be labor, whether it be construction or, changing buying and travel habits. I think that’s something we, collectively as an industry, need to continue to work on. If those things don’t change it’s going to be a problem. We’re all here to grow our companies and grow our businesses.

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