Private equity deals in US airport service companies peaked in 2025 with 36 acquisitions or growth investments, more than double pre-pandemic levels. This year may outpace last, with nine deals in the first two months of 2026 alone. Based on ownership data from Pitchbook, private equity-owned companies in this sector are largely in hospitality, ground handling, and aviation maintenance rather than airlines or airports. The global airline industry is increasing in traffic and profit year over year; the US boasted the largest passenger market, with 876 million passengers in 2024.
As seen in other sectors, private equity’s value-extractive model often impacts workers through reduced wages, benefits, and staffing as a firm seeks to maximize profit above all else. A recent case impacting hundreds of UNITE HERE members highlights the possible effects on workers.
In 2023, private equity firm Aurelius Group acquired LSG Lufthansa Service Holding. When Aurelius acquired the company, it was already five years into contract negotiations. In recent months, Sky Chefs workers launched protests in Philadelphia, Los Angeles, Miami and other cities across the country, alleging poor safety conditions and demanding better wages and healthcare as they enter the eighth year of negotiations.
One union member at MSP Airport in Minneapolis cited a recent workplace injury as an example of the possible danger from management’s new policy reducing two-person crews to solo jobs at some sites. The union alleges that in addition to stalled negotiations, the company retaliated against Arizona member Filiberto Lares for calling attention to unsafe work conditions.. Since the 2023 acquisition, OSHA has identified several violations at the company, including a serious violation resulting in a fatality or catastrophe and a fine of more than $8,000.
In November 2025, LSG Sky Chefs laid off around 180 workers when the company lost an American Airlines contract to GAT Air Ground Support (GAT), which provides ground handling and catering services to airlines in the United States and Canada. At the time, GAT was owned by private equity firm Atlantic Street Capital. The company failed to commit to hiring the laid off union LSG employees. GAT employees are currently unrepresented by a union. Under Atlantic Street ownership, OSHA found 10 health and safety violations at other locations, with more than half of them serious. The violations involved multiple accidents and one fatality.
In February 2026, The Sterling Group and Capitol Meridian Partners acquired GAT through portfolio company PrimeFlight Aviation Services. After the company acquisition, workers received a letter stating that they would need to complete “required onboarding steps” to retain their jobs and that “certain benefits and policies may change based on PrimeFlight’s policies and applicable provincial requirements.” UNITE HERE Local 11 reached out to PrimeFlight and has yet to receive a response. Sterling and Capitol Meridian have owned Texas-based PrimeFlight since 2023.
Airport workers at other private equity-owned companies have also been demanding better health and safety protections. Workers at Alliance Ground International (AGI) are organizing with the Service Employees International Union (SEIU), rallying around issues like extreme heat and alleging illegal layoffs. With more than 12,000 employees across 62 airports, the company handles cargo, services aircrafts and lounges, and manages mail in the United States and Canada. In December 2025, an AGI executive was indicted by New York Attorney General Letitia James on charges of bribery and money laundering. In addition to legal and headline risk from the scandal, the company has faced regulatory action on health and safety issues, accruing thousands of dollars in penalties for OSHA violations since 2016[1]. Blackstone, Greenbriar Equity Group, and Audax Private Equity acquired AGI in June 2021; private equity firm Lone Star Funds announced its acquisition of the company in January 2026.
Airport workers across the country are launching campaigns to keep their work adequately compensated, safe, and dignified. Private equity-owned companies have also recently come under scrutiny for servicing ICE deportation flights – SEIU has launched a campaign demanding that fixed based operators, including Stonepeak’s Omni Air International, cut contracts with the Trump administration.
Investors should carefully consider the risks of increasing private equity investment in airport services. As a sector with significant union density, firms and the companies they acquire should be prepared to adopt a position of neutrality and bargain in good faith with employees as a means of securing long-term labor peace and stability benefiting their bottom lines. Investors can implement their own Responsible Workforce Management policies to help drive value and manage risk in their private equity portfolios, following the lead of pension funds including New York State Common, Maryland, Massachusetts, Illinois, and CalPERS.
[1] See OSHA violations for Alliance Ground International, AGI Post, AGI Cargo, and AGI Ground.