Airport Experience® News - Customer Service Issue 2023

DATA CHECK

Comparison of Passenger Traf c Levels: Large-Hub Airports Traf c: 2023 Versus 2019 (January–July) (%)

Detroit O'Hare SFO Minneapolis San Diego Atlanta JFK Houston LGA Charlotte EWR Dallas-Ft Worth Denver

BIG SPENDING, BIG DEBT U.S. Airports Push Forward On Capital Programs, But Ratings Impact Is Minimal, Fitch Says -20 -10 0 10 Portland LAX Philadelphia

20

Source: Fitch Ratings, Fitch Solutions, airports

BY CAROL WARD

Comparison of Passenger Traf c Levels: Large-Hub Airports Traf c: 2023 Versus 2019 (January–July) (%)

($ bil.) Airport Capital Program Size

Detroit O'Hare SFO Minneapolis San Diego Atlanta JFK Houston LGA Charlotte EWR Dallas-Ft Worth Denver

10 12 14

0 2 4 6 8

LAX

Portland LAX Philadelphia

SFO

MSP

DFW

Detroit

Atlanta

Denver

MWAA

Portland

Houston

Charlotte

San Diego

Philadelphia

-20

-10

0

10

20

Chicago O'Hare

Chicago Midway

Source: Fitch Ratings, Fitch Solutions, airports

Source: Fitch Ratings, Fitch Solutions, airports

ith U.S. passenger traffic now firmly entrenched at pre-pandemic levels, major U.S. Airport Cost per Enplanement Projections: 2023 Versus 2027

(JFK) and LaGuardia (LGA) airports are at the higher end given major redevelopment works. Other airports anticipating the largest increases over the next decade include Chicago’s O’Hare International (ORD), Los Angeles International (LAX) and San Francisco International (SFO), Fitch said. However, the ratings agency does not anticipate the uptick in debt to drive credit pressures for most airports. “Operating revenues from airlines/ non-aeronautical sources, coupled with other airport revenues, should be able to keep pace with the higher financial obligations to service debt,” said Lehman. “Airports are constantly challenged with rising budgets for capital spending needs to meet current and future demand so the ability to execute such plans with little impacts to their respective financial profiles has served the sector well.” Philadelphia Reagan National Atlanta Houston Detroit MSP Charlotte 2027 0 4 8 12 16 20 ($ mil.)

W

Airport Debt Balan

($ bil.) Airport Capital Program Size

airports are moving ahead with capital programs to meet rising travel demand. Fitch Ratings says in a new report that these programs will come with higher costs but it does not anticipate the increase in debt will drive credit pressures for most airports. Federal grants will make up a portion of the capital program funding, though Fitch Senior Director Seth Lehman said that the bulk of the financing will come from tapping the debt markets. “Additional debt, coupled with general inflationary pressures facing airports, will cause the cost per passenger enplanement at large hubs to continue to rise,” said Lehman. The costs at the terminal facilities at New York’s John F. Kennedy International Houston Charlotte Philadelphia Detroit Chicago Midway 0 10 20 30 40 50 LAX SFO Portland San Diego Midway ($)

2023

10 12 14

0 2 4 6 8

DFW

LAX

SFO

DFW

LAX

Dulles International

SFO

MSP

DFW

Atlanta

Denver

MWAA

Portland

Source: Fitch Ratings, Fitch Solutions, airports

Source: Fitch Ratings, F

San Diego

Chicago O'Hare

Source: Fitch Ratings, Fitch Solutions, airports

4

AX NEWS CUSTOMER SERVICE ISSUE 2023

Airport Debt Balances: 2019 Versus 2027 Projections

Airport Cost per Enplanement Projections: 2023 Versus 2027