It comes after it concluded its review of the ground handling market, which it committed to as part of its wider 22-point plan for tackling aviation disruption last June.
The report found staffing shortages were a major factor in last summer’s disruption, with ground handlers struggling to recruit enough staff in time for the peak travel season after Covid-19 restrictions were lifted.
Aviation minister Baroness Vere of Norbiton said: "The misery passengers faced last year when their flights were severely delayed or cancelled at the last minute was simply unacceptable.
"We’ve made it clear that improvements can and must be made, so the Civil Aviation Authority (CAA) are working closely with the industry to build a resilient ground handler market for years to come."
The government has advised the aviation industry to further explore how to improve how ground handlers’ performance is measured and monitored and improve engagement between ground handlers and the government.
It also said continued support from its Generation Aviation programme for recruitment, retention, upskilling and outreach will be available, and a series of working groups involving airports, airlines and ground handlers to address areas including airport ID processes and performance standards will be implemented.