Determinants of Unit Costs at Airports in Türkiye: Economies of Scale and Revenue Effects

This study examines the unit cost structure and the existence of economies of scale at 40 airports operating in Türkiye. The study utilizes a panel data analysis approach, employing a comprehensive dataset comprising passenger numbers, aircraft traffic, and airport revenues from 2014 to 2023. Following model selection via the Hausman test, it was determined that the random effects model yielded statistically significant results. The analysis confirmed the existence of economies of scale at airports, while concluding that the impact of aircraft movements on unit costs is limited. Additionally, it was found that revenue increases at airports also increased unit costs. The findings confirmed that airport cost structures are sensitive to passenger volume. This study, which reveals airport costs and the state of economies of scale in Türkiye, provides important information for policymakers and airport management.