Why It Matters
Jackson Hole Airport’s arrangement with Grand Teton National Park reduces federal revenue-sharing payments on a major income stream, affecting the park’s ability to fund maintenance and operations during a period of significant infrastructure backlog across the national park system.
What Happened
Jackson Hole Airport negotiated an agreement with Grand Teton National Park in 2018 that exempts certain revenues from federal fees otherwise owed under a decades-old use agreement. The airport acquired a fixed-base operator and fuel farm business in 2023, then sought to exclude the revenues from that operation from the 3-4% fee structure established in the original 1983 use agreement between the airport and the Department of the Interior.
In a May 2018 letter, the airport proposed that new revenues from the fixed-base operator would not be subject to the federal fee calculation. Grand Teton Superintendent David Vela agreed with the airport’s interpretation, stating in writing: “We concur with your interpretation of ‘operating revenues’ with respect to the gross income of the fixed base operation and the new fuel facility.”
The airport’s attorney characterized the arrangement as “a plausible interpretation of the 1983 Agreement.” The airport currently operates on 533 acres within Grand Teton National Park under that original use agreement, which required fee payments on revenues derived from airport operations.
Interim Airport Director Bob McLaurin said the airport believes “we’re paying the amount that’s appropriate under the agreement we have with the Department of the Interior.”
By the Numbers
$33.6 million — fixed-base operation revenue in fiscal year 2024, the first full year the airport owned the business
$59.5 million — total operating revenue in FY 2024
$30.1 million — total operating revenue two years prior to FY 2024
$219,632 — increase in fee payments to government over the two-year period from prior year to FY 2024
$1.35 million — fees paid to the government in FY 2026
580,702 — passengers enplaned at Jackson Hole Airport in 2025
$343 million — Grand Teton’s deferred maintenance and repairs backlog as of 2024
Zoom Out
Jackson Hole Airport is a regional transportation hub, with studies from 2021 indicating the facility handles 5-11% of travelers visiting the region. The airport’s exemption from federal fees comes as the national park system faces a documented $35 billion maintenance backlog. Grand Teton’s share of that backlog stands at $343 million, covering deferred repairs and infrastructure upgrades across the park.
The arrangement reflects broader questions about how federal lands generate revenue and how those funds flow back into park operations. The 1983 use agreement was designed to ensure the airport contributed to the costs of maintaining park infrastructure it occupies, but the 2018 reinterpretation narrows the revenue base subject to those payments.
What’s Next
The airport’s fee arrangement appears to remain in effect absent a challenge or renegotiation. No indication emerged that the National Park Service has revisited the 2018 agreement or that congressional or departmental oversight is underway. The matter underscores tensions between federal land stewardship and revenue-generating operations on public property.