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U.S. Airports Need $100B for Capital Projects
U.S. airports will require almost $100 billion for capital projects during the next five years. Additionally, the airports indicate they can fund only about half of that on their own, according to a bi-annual study released by the Airports Council International-North America. The cost projections for 2017-2021 are 32% higher than the group’s five-year estimate in 2015.
Airports have $10 billion available each year, and receive approximately $3.5 billion in Airport Improvement Program grants from the Federal Aviation Administration. Those grants are used for new runways and additional construction. Airports also charge rent to airlines and other businesses, and issue bonds to raise money.
Due to the need for the extra cash, airports are asking President Donald Trump to raise the Passenger Facility Charge, a per-passenger charge to fund FAA-approved projects. But carrier representative Airlines for America objects to the increases, suggesting it will decrease sales.
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