US: Moody’s expects construction costs to push 30% rise in airport fees by 2022
The cost to fund major projects at the US top 25 airports has rates and charges on track to rise significantly in the next three years, adding as much as $4 to airline cost-per-enplanement (CPE) figures, a Moody's analysis shows. "We expect aggregate costs incurred by all airlines for rents and landing fees, paid directly to all airports, to rise 30% from fiscal 2017 levels by 2022 due to the capital plans of the 25 largest airports," Moody's said. Assuming fixed operating and debt-service costs and steady demand—which means airlines at so-called "full-residual" airports that operate on a cost-recovery basis will not have to pay extra to compensate for passenger-revenue declines—the average CPE will rise about $4.50, or 41%, by 2022. For airlines, this translates into CPE increases of $1 to $4, depending on the carrier. United Airlines is expected to see the largest CPE increase as measured in dollars, at $4. American Airlines, with a CPE of $11, will see its figure rise by about $3—a 39% jump that is the highest projected percentage increase for large US airlines. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-08-27/general/us-moody2019s-expects-construction-costs-to-push-30-rise-in-airport-fees-by-2022
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US: Moody’s expects construction costs to push 30% rise in airport fees by 2022
The cost to fund major projects at the US top 25 airports has rates and charges on track to rise significantly in the next three years, adding as much as $4 to airline cost-per-enplanement (CPE) figures, a Moody's analysis shows. "We expect aggregate costs incurred by all airlines for rents and landing fees, paid directly to all airports, to rise 30% from fiscal 2017 levels by 2022 due to the capital plans of the 25 largest airports," Moody's said. Assuming fixed operating and debt-service costs and steady demand—which means airlines at so-called "full-residual" airports that operate on a cost-recovery basis will not have to pay extra to compensate for passenger-revenue declines—the average CPE will rise about $4.50, or 41%, by 2022. For airlines, this translates into CPE increases of $1 to $4, depending on the carrier. United Airlines is expected to see the largest CPE increase as measured in dollars, at $4. American Airlines, with a CPE of $11, will see its figure rise by about $3—a 39% jump that is the highest projected percentage increase for large US airlines. <br/>
