Passenger growth and revenue bonds upgrade at MIA

Miami International Airport (MIA) has started 2024 with its fastest pace ever for passenger growth, serving 1.5 million more travellers in the first quarter than its previous record set in the same period last year.

In the first three months of 2024, MIA welcomed 14.9 million passengers, which was a significant 11.6% increase from 13.3 million over the same period last year, according to audited statistics released by the Miami-Dade Aviation Department.

International travel led the way with a 12% jump to 6.5 million passengers, while domestic travel grew 11.3% to 8.3 million.

MIA’s impressive growth and financial stability earned its revenue bonds an upgrade to ‘A+’ from ‘A’ by Standard and Poor’s (S&P) in the bond rating agency’s recent report on April 22.

Last year, Fitch Ratings also increased MIA’s bonds to an A+ rating.

“S&P’s upgrade is more evidence that MIA is one of the fastest-growing and best-managed airports in the country,” enthused Miami-Dade County mayor, Daniella Levine Cava.

“The improved rating also demonstrates that MIA’s ongoing improvements are making a strong impression on industry experts, which is fantastic news for our residents and our local business community.”

According to S&P credit analysts in the April 22 report, the rating reflects its view about “MIA’s emergence as a large hub that is outperforming peers, leading to an improvement in the market position to extremely strong from very strong”.

In addition, S&P states: “Our positive holistic analysis reflects our view of the airport’s financial resiliency and stability through multiple economic cycles and captures MIA’s operational strengths relative to those of large hub peers.

“MIA’s trends (when compared with 2019 demand) are the strongest among the top 10 large hub airports, according to Federal Aviation Administration statistics. In addition, MIA exceeds our national median activity estimates, which show airport enplanements falling short of 110% of 2019 demand until 2026.”

The S&P report also gave high marks for MDAD’s management of MIA’s capital improvement programme, noting that MDAD has “very strong management and governance, as is evident in an experienced, proactive, and effective management team”.

The airport’s M.I.A. Plan is implementing $1.7 billion in maintenance upgrades, including replacing or renovating all 616 elevators, escalators, and moving walkways at MIA in need of an upgrade.

MIA is also making an unprecedented investment of more than $7 billion in its Future-Ready Capital Improvement Program.