U.S. Airport Sector View - A Month Into COVID-19

  • It is imperative to consider what the financial status of an individual airport was before the COVID-19 slowdown. The Moody’s median “days cash on hand” metric for the sector was a record 659, but there is wide range of 2,208 to 238 days in the examples we list;

  • The CARES Act offered substantial relief for airports. The average relief as a % of revenues for those listed in our examples was 22%, but this ranges from 38% to 15%. There was a bias in funding toward larger airports;

  • Recovery could come swiftly and quickly – airports located in regions and cities with industries and demographic bases that are growing and those with strong carriers could be best positioned to take advantage of a recovery when it finally arrives;

  • Airports and related industries saw substantial relief in last week’s CARES Act. There may have to be more depending on how long this shut down or slowdown continues; and

  • Rating agencies already have “Negative” outlooks on the Airport Sector.

    Download the full article

    Read more Municipal Commentary