Insights in diversity: A latent profile cluster analysis of regional airports in Western Europe

Accounting for 50 % of European airports and 30 % of European traffic, regional airports are vital to the aviation sector. However, their diverse characteristics and operational challenges complicate the development of effective business and management strategies. Given the increasing financial and environmental pressures on regional airports, the aim of this paper is to understand the differences between well-performing and underperforming types of regional airports in order to effectively tailor regional airport business and management strategies. This study applies latent profile cluster analysis to categorise regional airports in Western Europe based on operational characteristics, financial performance, environmental initiatives, and external factors such as geographical context, competitive dynamics, and ownership structure. The analysis identified four distinct categories, including (1) leading regional airports that serve over five million passengers and excel in financial performance, diversified airline partnerships, and sustainability commitment; (2) small regional airports that handle fewer than three million passengers and typically rely on public funding to maintain services. They are further divided into remote/rural and non-remote subcategories; (3) challenged low-cost regional airports, marked by a high share of low-cost carrier movements, that face intense competition and financial instability; and (4) specialised cargo airports that focus primarily on freight operations but face unique operational challenges. The clusters offer practical implications for stakeholders regarding opportunities and challenges faced by different regional airport types. For instance, airport operators can use the clusters as a basis to benchmark performance and tailor strategies concerning, e.g., cost optimisation and airline partnerships. Policymakers could consider targeted public support for remote/rural small regional airports and further investigate the relationship between ownership structures and financial efficiency.