US airports spend record sums to renovate amid travel boom

US airports are breaking records on construction spending to cash in on a surge in travel while the industry is flush from years of low fuel prices. Airports spent a seasonally adjusted US$5.42b on construction in May, according to a preliminary estimate by the US Census Bureau Monday, a 75% increase from a revised estimate of $3.1b a year earlier. “We’re at record airline traffic right now,” said George Ferguson, an airline industry analyst for Bloomberg Intelligence. “In every market I look at, airlines are adding a lot of capacity.” Airlines have booked healthy profits in recent years, but those margins are beginning to narrow as oil prices rise, and both airlines and airports are fighting for market share, Ferguson said. For airlines, that could mean buying more planes. For airports, it may mean updating terminals, he said. <br/>