The US airport sector has successfully recovered from the challenges presented during the Covid-19 pandemic, KBRA explained in its 2024 public finance sector outlook report.
The report noted that passenger activity approached, and in many cases exceeded, pre-pandemic levels. For example, Dallas-Fort Worth International Airport passenger activity has benefited from a strong economy, along with low levels of unemployment, a strong corporate presence that is supportive of travel, and a growing population. Orlando International Airport has also seen substantial post-pandemic growth supported by its position as a popular global tourist destination.
However, the report also highlighted that recovery was uneven across airports. For instance, Hartsfield-Jackson Atlanta International Airport has progressed at a slower rate than many other large airports due to Delta’s service restoration decisions and Delta representing over 80% of the airport’s enplaned passengers. It has also been further hindered by Atlanta’s lower prominence as a leisure destination.
The report highlighted that airport operator actions, balance sheet resources and federal recovery funds assisted in stabilising airport financial positions. $18.5 billion was provided to US airports in federal aid to response to the pandemic and counterbalance revenue loss. However, it also said significant infrastructure needs to be addressed and financing source adequacy remains in question.
“Despite the generous federal relief airport allocation during the pandemic,” the report stated, “total funding represents less than one-half of the more than $40 billion US airports lost during the period, leading to many airports taking on additional debt.”
KBRA identified that climate change, reputational, and cybersecurity issues remain as prominent concerns for the future of US airports.