KBRA releases its 2024 Public Finance Sector Outlook with a special focus on the U.S. airport sector.

KBRA believes the U.S. airport sector has successfully weathered the COVID-19 pandemic and the accompanying sharp decrease in passenger activity that began in March 2020. The combination of generally robust pre-pandemic balance sheet resources, federal recovery payments together with expenditure reductions, as well as support of airlines/concessionaires all contributed to financial stability. Also crucial were cost recovery mechanisms embedded in airline use and lease agreements that ensured coverage of debt service requirements. Significant federal aid (~$18.5 billion) was provided to airport operators as economic assistance to prevent, prepare for, and respond to the pandemic and to offset the loss of revenues.

Key Takeaways

• Passenger activity approached, and in many instances exceeded pre-pandemic volume, although recovery was uneven across airports. 
• Federal recovery funds, airport operator actions, and balance sheet resources assisted in maintenance of stable financial postures.
• Significant infrastructure needs remain to be addressed and financing source adequacy is ongoing.
• Environmental issues as well as potential reputational and cybersecurity risks remain prominent.

Click here to view the report.

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1002801

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