The council-owned airport's revenue and cost challenges were laid bare in a new report that seeks to avoid ticket price increases for passengers.

Under its own projections, the airport will have less than $64,000 in cash reserves to help maintain more than $36 million in assets.

The airport will need to seek additional grants to maintain a schedule of updates and remain competitive, according to the chairman of the council's Airport Advisory Committee.

Wagga councillor Kerry Pascoe, chair and one of two councillors on the committee, has backed a freeze on passenger fees but acknowledged that more external funds were needed. 

"We are trying all avenues with state and federal departments to get funding for a great many things," he said.

"We are also looking at the masterplan.

"Our masterplan for the airport is probably outdated and we need to go through it again and get up-to-date with the requirements for the airport into the future."

A report to councillors warned that the airport cash reserve "is not in a financially sound position" and was "not adequate for the size of the airport operations".

Council management has called for a freeze on passenger fees due to an ongoing review instead of a 1.9 per cent increase urged by council staff.

The report projected the airport would forgo $64,000 in additional revenue due to the freeze, compounding concerns the facility's $36 million asset base is supported by just $64,000 in cash reserves.

Cr Pascoe said there was time to make changes to fees following a review of the airport.

"If that's done in a reasonable amount of time, and given three months notice for operators, in my view, we can still get fees and charges into at least part of the 2019/20 financial year," he said.

Councillor Tim Koschel said he had been contacted by people in business about the airport's finances but he did not accept that the asset would need to run at a profit.

"The airport should make money to cover its costs but it shouldn't be a profit-making industry for us," he said.

Cr Koschel said the low cash reserve level "probably isn't acceptable" and external grants "weren't always easy to come by".

"Our landing fees are actually quite reasonable compared to other regional airports in the area," he said.

"It's very important to have tourists in Wagga but I'd hate to see us freeze fees at the cost of maintaining one of our biggest assets.

"If it's not paid for in fees, it's coming from taxpayers."

Wagga Airport should cut its costs by dealing with users directly, according to an aviation industry submission on its draft fees and charges.

An end-of-year financial update to councillors, the airport's operating deficit had increased by more than $200,000 to $1.97 million.

In a submission on the draft airport fees and charges, Wagga City Aero Club president Geoff Breust called for the airport to charge higher fees for larger aircraft.

He also urged council to consider charges for emergency use and a move to annual fees.

Combined with charging fees directly instead of though the Avdata agency, Mr Breust stated that the changes could save about $30,000 with no additional staff needed.

One of the airport's biggest users, Qantas, declined to comment and Regional Express did not respond to a request for comment.

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