Financial incentives: Birmingham puts millions on the table to bring back New York flights
February 8, 2026
Birmingham Airport has publicly announced its commitment to financially supporting a potential new route to New York. The airport hopes to incentivise a daily service as of Summer 2027, coinciding with the Invictus Games in Birmingham. The airport has not specified an airline it hopes to attract, but there are only so many options.
BHX believes the United States market is underserved, noting several figures. First, it said that 485,000 yearly passengers that would have otherwise flown from BHX are forced to fly from another UK airport to the US. This most likely refers to Manchester and the larger London airports.
It adds that 1.88 million passengers travelled between the US and the “wider Birmingham catchment area,” equivalent to 5,100 daily passengers.
Birmingham’s multi-milllion dollar investment in New York flights
Birmingham Airport has committed to a multi-year financial incentive program, an investment which it says is worth “several million dollars.” It is eyeing daily services between the New York area and Birmingham from summer 2027. The airport will also support marketing efforts and provide additional “operational incentives.”
Several airlines are concerned by this offer, possibly some more than others. On one hand there are those with New York hubs – including Delta Air Lines and American Airlines at New York-JFK and United at Newark. It is worth noting that United and American’s growing fleet of narrowbody jets – including the Airbus A321XLR – offer a low-risk solution to new routes.
On the other hand, UK-based TUI Airways might also be within the scope but this seems less likely as it does not have a presence in New York and instead focuses on leisure destinations.
This summer, Birmingham will have long haul flights with Emirates, Qatar Airways, Air India, TUI and Saudia. The company last had flights to New York in summer of 2018 with Primera Air.
Why are subsidies important for new routes?
Providing subsidies for flights is not an unusual feat. In recent months, Delta Air Lines and United have launched new routes to several unusual destinations in Europe. Many of these have been supported by incentives either from the airports themselves or the local governments.
Many of these destinations would not be top of the list for most airlines, which prioritise profitable destinations over those that might be more risky. Financial incentives mitigate some of the risk, as the flights in question are no longer solely reliant on the revenue generated by passengers onboard.
Of course there has to be at least some demand. Flying planes empty makes little sense, and typically will not be worth the amount generated by the subsidy – especially for long-haul services.
Financial incentives help an airline launch a new route and are typically temporary. In this case, Birmingham Airport is committed to supporting the route for several years. When a route is first launched, loads are often quite low. As the route matures, loads improve too, and subsidies become unnecessary as the it turns a profit on its own – at least that is the aim.
Featured: Markus Mainka | stock.adobe.com
