Kentucky’s earliest settlers were men and women on the move and our people have long understood the importance of getting people and products where they need to go. From our farms and factories to our airports and aerospace facilities, transportation is a critical part of keeping our economy moving. Today, aviation and aeronautics are playing an increasingly important role in that effort on the national and international levels – and Kentucky is well positioned to take advantage of the opportunities ahead.
This year, as we celebrated National Aviation Day on August 19, we have an opportunity to reflect on what it means to our state. Aviation is already a big deal in our Commonwealth. The aviation system supports 137,858 jobs, $9.4 billion in payroll and $26.5 billion in economic output, according to the Kentucky Department of Transportation’s 2025 economic impact report. And, Kentucky is home to 150 airports, including five commercial service airports, as well as heliports and a growing network supporting general aviation.
Of course, aviation reaches far beyond the airport runway. Kentucky is home to more than 100 aerospace-related manufacturers and companies employing more than 23,000 people. Since 2017, the state has announced roughly 40 aerospace-related projects representing more than $1.1 billion in investment and more than 2,800 announced jobs. In 2024 alone, Kentucky exported nearly $19 billion in aerospace products and parts.
That means aviation is not simply about airplanes. It is about manufacturing, logistics, engineering, research, tourism and good-paying jobs. It connects Kentucky businesses to customers around the world and gives our communities another tool for attracting new investment.
It also means an opportunity for another strong industry – agriculture. Earlier this year, the Kentucky General Assembly took an important step toward expanding that opportunity by passing legislation that includes incentives for alternative jet fuel. The measure, HB 869, provides a tax credit for producers of alternative jet fuel and establishes a rebate of up to 75% of the state sales tax generated by the sale of alternative jet fuel and agriculturally based alternative jet fuel at Kentucky commercial airports. The rebate must be reinvested into airport facilities and operations. Agriculturally based alternative jet fuel can create new markets for Kentucky-grown feedstocks like soybeans and corn, while supporting the aviation industry’s demand for reliable fuel. That creates the potential for dollars to move through multiple parts of our economy – from the farmer producing a crop or other eligible feedstock, to the businesses processing it, to the companies producing fuel, to the airports and aviation businesses using it.
Aviation is becoming increasingly important to Kentucky’s broader economic competitiveness as well. Airports are gateways for business and recreation, while also supporting emergency response and medical transportation. At the same time, aerospace manufacturing is helping Kentucky compete in a global economy where advanced technology, skilled workers, and reliable transportation infrastructure are increasingly important.
The opportunity in front of us is significant. We have the workforce, the agricultural resources, the manufacturing base and the transportation infrastructure to become an even bigger player in aviation and aeronautics.
But realizing that potential will require continued investment in our airports, workforce and educational institutions. It will require us to look for emerging opportunities and eliminate barriers to growth.
Kentucky has never been afraid to build industries that create opportunity for the next generation. Aviation and aeronautics give us another chance to do exactly that.
If we continue making smart investments and connecting the strengths we already have, Kentucky can continue to help shape the future of flight, not simply watch it take off somewhere else.
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at Stephanie.Dietz@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
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