Investing in the U.S. Air Show Industry: A Rising Trend with Economic and Tourism Potential

The U.S. air show industry is emerging as a compelling investment opportunity, driven by a confluence of economic, infrastructural, and tourism trends. While events like the EAA AirVenture Oshkosh and Reno Air Races have long been celebrated for their economic impact, the 2025 Cleveland National Air Show exemplifies how smaller, regional events are now gaining traction as catalysts for growth. With government support for aviation infrastructure and a surge in public engagement, this sector offers a unique blend of cultural resonance and financial potential.

The Economic Engine of Air Shows: A Case Study in Cleveland

The 2025 Cleveland National Air Show, scheduled for August 30–September 1 at Burke Lakefront Airport, is poised to generate an estimated $17.9 million in economic impact for Northeast Ohio. This figure, derived from 2024 data, includes $13.1 million in direct spending from ticketed attendees, with 57% of those visitors coming from outside the Greater Cleveland area. Non-local attendees contributed an additional $1 million in spending from spectators watching the event from outside the grounds, while local residents added $3.8 million in related expenditures. The event also supported 145 full-time jobs and generated $2.3 million in tax revenue.

What makes Cleveland's air show particularly noteworthy is its alignment with broader infrastructure investments. In 2025, Cleveland-Hopkins International Airport received a $21.5 million federal grant under the Bipartisan Infrastructure Law to modernize safety infrastructure, including wildlife fencing and gate construction. While this funding is not directly tied to the air show, it reflects a national trend of prioritizing aviation infrastructure, which indirectly supports events like Cleveland's. The FAA's $14.5 billion five-year investment in airport infrastructure, part of the Infrastructure Investment and Jobs Act (IIJA), underscores this shift.

A National Trend: Air Shows as Economic and Tourism Catalysts

Cleveland's success is not an outlier. The EAA AirVenture Oshkosh, the largest air show in the world, generated $257 million in economic impact in 2024, with 70% of attendees coming from outside Wisconsin. Similarly, the Reno Air Races, before relocating to New Mexico in 2025, delivered $158 million in economic value to Reno, Nevada, in 2023. These events highlight a sector where tourism, infrastructure, and public engagement intersect.

The key drivers of this trend include:
1. Government Infrastructure Investment: The IIJA's $25 billion aviation funding has spurred modernization projects at airports nationwide, enhancing safety and capacity. This creates a favorable environment for air shows, which rely on robust infrastructure.
2. Tourism and Branding: Air shows position host cities as cultural and aviation hubs. For example, 52% of non-local attendees at Cleveland's 2024 air show expressed interest in returning for future vacations, a metric mirrored in Oshkosh and Reno.
3. Corporate and Community Partnerships: Air shows are increasingly self-sustaining through sponsorships and community support, reducing reliance on public funding while amplifying their economic footprint.

Underappreciated Sectors: Where to Invest

While the air shows themselves are headline-grabbing, the real investment potential lies in underappreciated sectors that enable their success:

1. Aviation Infrastructure Providers
   Companies involved in airport modernization, such as those supplying wildlife fencing, runway lighting, or air traffic control systems, stand to benefit from the IIJA's $14.5 billion airport infrastructure allocation. For example, firms like AeroTech Systems (a hypothetical proxy for real-world aviation tech providers) could see increased demand as airports upgrade to meet safety and capacity needs.

2. Event Management and Hospitality
   The rise of air shows has created a niche market for event management firms specializing in large-scale, aviation-focused events. Additionally, local hospitality sectors—hotels, restaurants, and transportation services—experience a surge in demand during these events. For instance, Cleveland's 2024 air show drove a 4.1% increase in direct visitor spending in Winnebago County (a comparable market).

3. Aviation Education and Tourism
   Air shows often partner with educational institutions to promote STEM fields, creating opportunities for companies involved in aviation training or tourism. The Cleveland National Air Show's scholarship programs and internships, for example, align with a growing emphasis on workforce development in aviation.

Risks and Considerations

Investors should remain mindful of potential challenges:
- Infrastructure Redevelopment Debates: Cleveland's Burke Lakefront Airport faces pressure to redevelop into a mixed-use space, which could threaten the air show's long-term viability. Similar debates exist in other cities, such as Reno's shift to New Mexico.
- Weather and Safety Concerns: Unpredictable weather or safety incidents could disrupt events, impacting revenue.
- Competition for Federal Funding: As infrastructure needs grow, competition for IIJA funds may intensify, requiring companies to demonstrate clear ROI.

Strategic Investment Advice

For investors seeking exposure to this sector, a diversified approach is key:
- Long-Term Holdings: Invest in aviation infrastructure providers and event management firms with strong ties to government contracts or recurring revenue streams.
- Short-Term Opportunities: Consider regional tourism stocks or local hospitality businesses in cities hosting major air shows, capitalizing on seasonal demand spikes.
- ESG Alignment: Prioritize companies involved in sustainable aviation initiatives, such as electric aircraft development or eco-friendly event practices, to align with global sustainability trends.

Conclusion

The U.S. air show industry is more than a spectacle—it's a dynamic sector where infrastructure, tourism, and public engagement converge. The 2025 Cleveland National Air Show, bolstered by federal infrastructure investments and a loyal audience, exemplifies how regional events can drive economic growth. For investors, the time to act is now, as underappreciated sectors like aviation infrastructure and event-driven tourism position themselves for long-term gains.