The FDI angle:

  • Airports are inseparable from global trade and investment.
  • They enable access to global markets and the air transportation of goods.
  • Why does this matter?Airports with international connectivity make cities more attractive to foreign direct investment (FDI).

Covid-19 was the largest blow to airports in history. The pandemic caused global air passenger numbers to plummet by 60.7% in 2020, according to Airports Council International (ACI), forcing airlines to cancel flight schedules. Global airport revenues also fell to less than $86bn in 2020 and 2021, ACI figures show, down from $158.6bn before the pandemic.

Advertisement

Air travel has since recovered strongly. Major airports have pivoted to support the return of demand for air travel, particularly from leisure passengers because businesses have cut back on travel over environmental and cost concerns. Data from the International Air Transport Association shows that revenue-passenger-kilometres, an industry metric for air traffic, were at 94% of pre-pandemic levels in 2023. ACI forecasts global passenger traffic to exceed the historic high set in 2019 for the first time in 2024.

Airports are inseparable from global trade and investment. They enable the air transportation of goods and make locations more attractive to FDI. Cities with international airport connectivity provide companies with better access to global markets and thereby make them suitable locations in which to set up new subsidiaries and ventures.

An 2023 analysis by OAG, a data provider, shows which airports were the most internationally connected, a key factor assessed by investing multinationals. This index is created by combining data on the total scheduled connections in August, the busiest travel month, with the total number of international destinations served. 

The world’s most connected airports have made significant investments to improve their connectivity and service quality in response to soaring travel demand. Here is a list of the 10 most connected airports worldwide in 2023.

#1 Heathrow (LHR), London, UK

  • Dominant carrier: BA (50% of flights)
  • Total seats (Sep 2022-Aug 2023): 47.20m
  • International connections (Aug 2023): 57,540

London Heathrow was the world’s most connected airport in 2023. As the hub for BA and Europe’s largest airport, it is key to the connectivity and competitiveness of the UK capital. In August 2023, more than 57,000 international connections were possible from inbound and outbound flights to and from Heathrow. Travellers could also access more than 209 international destinations from the airport that same month.

Advertisement

“Heathrow has always been a very strong hub, with a focus on North America, but also with services to Asia,” says John Grant, a partner at Midas Aviation, a data and consulting firm. The recovery of travel in Asia, adds Mr Grant, has helped Heathrow jump up the airport connectivity rankings.

The whole of 2023 was a strong financial year for Heathrow too. It served 79.2m passengers last year, according to airport figures, an increase of 29% from 2022. The airport is investing £1bn into new high-tech security equipment and upgrading 146 security lanes. Heathrow aims to reach 81.4m passengers in 2024.

#2 John F. Kennedy International (JFK), New York, US

  • Dominant carrier: Delta Air Lines (34% of flights)
  • Total seats (Sep 2022-Aug 2023): 37.31m
  • International connections (Aug 2023): 43,524

New York’s biggest airport was renamed JFK in December 1963, just over a month after the US president with the same name was assassinated. Its significance remains today. JFK was the world’s second most connected airport in 2023 and the US’s most internationally connected. In August 2023, JFK had 43,500 international flight connections and served 180 international destinations. 

However, JFK is a laggard in its level of service. Travellers ranked it as 88th in the world in 2023, according to Skytrax, an aviation review site. Since 2017, JFK has undergone a $19bn overhaul, which includes two new terminals and two terminal upgrades. The most transformative part of this is New Terminal One (NTO), a $9.5bn new international-only terminal. 

“Airports generally are economic engines, but particularly so in New York where the demand for air travel is [among] the biggest in the US [which] is one of the biggest aviation markets in the world,” says Luke Bugeja, CEO of Ferrovial Airports, a Spanish infrastructure group investing in NTO.

#3 Schiphol (AMS) , Amsterdam, Netherlands

  • Dominant carrier: KLM-Royal Dutch Airlines (53% of flights)
  • Total seats (Sep 2022-Aug 2023): 35.42m
  • International connections (Aug 2023): 58,805

The most internationally connected airport in continental Europe is Amsterdam’s Schiphol. The largest airport in the Netherlands had more than 58,000 international connections in August 2023. It also served 256 international connections, according to OAG data. 

It was also a turning point for Schiphol in 2023. The airport served 61.9m passengers last year, according to airport figures, up by 17.9% from 2022 but still below pre-pandemic levels. “We must continue to invest if we want to secure quality for airlines, passengers and employees,” said Ruud Sondag, the CEO of Royal Schiphol Group, in its 2023 annual results. 

More on airports and the travel industry:

#4 Kuala Lumpur International (KUL), Kuala Lumpur, Malaysia

  • Dominant carrier: AirAsia (34% of flights)
  • Total seats (Sep 2o22-Aug 2023): 27.02m
  • International Connections (Aug 2023): 24,888

Asia’s most connected airport was Kuala Lumpur International (KUL) in Malaysia’s capital. KUL is the headquarters of AirAsia and had more than 24,000 international connections in the busiest travel month of 2023. The airport served 110 international destinations that same month.

KUL is managed by Malaysia Airports Holdings Berhad (MAHB), which manages 39 airports in the south-east Asian country. In January 2024, KUL recorded 3.25m passenger movements, an increase of 37.5% on the same month a year earlier, according to MAHB figures. OAG figures show that KUL jumped from the world’s 12th most connected in 2019 to fourth last year. 

#5 Haneda (HND), Tokyo, Japan

  • Dominant carrier: All Nippon Airways (36% of flights)
  • Total seats (Sep 2022-Aug 2023): 50.22m
  • International connections (Aug 2023): 22,543

Japan’s leading airport Haneda is located in its capital Tokyo. It was closed for international flights from April 2020 due to the Covid-19 pandemic, only reopening on 19 July 2023. OAG figures show that it jumped from the world’s 22nd most connected airport in 2019 to fifth last year.

In August 2023, there were more than 22,000 international connections from Haneda, according to OAG figures. The airport, which is the home of All Nippon Airways, served 101 international destinations that same month.

#6 Frankfurt Main (FRA), Frankfurt, Germany

  • Dominant carrier: Deutsche Lufthansa (61% of flights)
  • Total seats (Sep 2022-Aug 2023): 35.72m
  • International connections (Aug 2023): 24,888

The most connected airport in Germany is in its financial capital Frankfurt. In August 2023, there were more than 24,000 international connections. The airport served 276 international destinations, making it the highest number for any airport in the EU in OAG’s ranking.

Traffic at Germany’s main airport rose by 21% to 59.4m passengers in 2023, according to airport figures. This was still about 16% below pre-pandemic 2019 levels. Stefan Schulte, CEO of Fraport, the airport operator, said in a statement that 2023 was “another challenging year” for aviation. He noted that the ongoing war in Ukraine, airspace restrictions due to an air defender Nato exercise and strikes in France disrupted traffic.

#7 Istanbul International (IST), Istanbul, Turkey

  • Dominant carrier: Turkish Airlines (79% of flights)
  • Total seats (Sep 2022-Aug 2023): 44.72m
  • International connections (Aug 2023): 65,509

Another airport to jump up the OAG rankings is Istanbul International. It went from 17th in 2019 to seventh in 2023. This is largely due to a massive expansion of flight routes by its main carrier Turkish Airlines, especially to regions such as Central Asia.

Almost 300 international destinations were served by IST in August 2023, more than any other airport in the top 10. That same month, more than 65,000 international connections were possible from Istanbul’s main airport. 

International flight capacity in Turkey as a whole jumped by 15.4% in the first three quarters of 2023, compared with the same period in 2022, according to OAG figures. This was more than any other country.

#8 Incheon International (ICN), Seoul, South Korea

  • Dominant carrier: Korean Air (22% of flights)
  • Total seats (Sep 2022-Aug 2023): 27.84m
  • International Connections (Aug 2023): 27,837

Another notable airport in Asia is South Korea’s largest. Incheon International (ICN) had more than 27,000 international connections in August 2023, according to OAG. It served 135 international destinations that same month.

ICN is the main hub for Korean Air, which accounted for about one fifth of flights going into and out of the airport. Skytrax, the aviation review site, ranked ICN as the world’s fourth best airport in 2023.

#9 Charles de Gaulle (CDG), Paris, France

  • Dominant carrier: Air France (55% of flights)
  • Total seats (Sep 2022-Aug 2023): 38.91m
  • International Connections (Aug 2023): 51,104

Another one of Europe’s leading airports is Charles de Gaulle (CDG). The largest hub in the French capital Paris had more than 51,000 international connections in August 2023. That same month, the airport served 259 international destinations, second only to Frankfurt in the EU.

In 2023, Paris-CDG managed 67.4m passengers, an increase of 17.3% from the previous year, according to Groupe ADP, the airport operator. This was 88.5% of the traffic recorded in the pre-pandemic year of 2019. The airport is set for a busy travel year in 2024 because Paris will host the Olympic and Paralympic Games. In March, Paris-CDG will also celebrate its 50th anniversary and is set to inaugurate a new metro line connection in June.

#10 Chicago O’Hare International (ORD), Chicago, US

  • Dominant carrier: United Airlines (48% of flights)
  • Total seats (Sep 2022-Aug 2023): 43.15m
  • International Connections (Aug 2023): 44,907

The only other US airport to make it into the top 10 most connected is Chicago O’Hare International (ORD). In August 2023, the airport had almost 45,000 international connections and served 235 international destinations.

The airport is undergoing a $1.3bn revamp to increase its capacity and improve efficiency. In January 2023, a new extension to terminal 5 was unveiled in part of the plan to transform the airport. 

“O’Hare is a significant economic engine for our entire region and the first impression of Chicago for millions of visitors every year,” said former mayor Lori Lightfoot in a statement. 

Do you want more FDI stories delivered directly to your inbox? Subscribe to our newsletters.

This article first appeared in the April/May 2024 print edition of fDi Intelligence.