CNMI Airport faces financial crisis amid flight suspensions and utility cost increases

The 24th NMCL FA Committee Meeting convened on May 6, 2025, at 1:30 PM, focusing on the financial status and operational challenges of the Commonwealth Ports Authority (CPA) amid significant changes in aviation and seaport operations.

The meeting began with discussions on the current funding situation for the airport, revealing that the CPA has approximately two months of operational funding remaining. The average monthly expense for the airport is around $1.3 million, which includes payments to the Guam Power Authority. However, the CPA is facing a projected shortfall, with operating expenses reaching nearly $5 million against revenues of $4.1 million as of February 2025, resulting in a net profit of $854,000—$2.3 million short of the required revenue for the fiscal year.

Committee members expressed concerns regarding the impact of reduced flight schedules and the exit of DFS Galleria on both revenues and expenses. The CPA acknowledged that while flight suspensions would decrease revenue, many expenses are fixed, and the recent opening of a commuter terminal would further increase utility costs. The CPA anticipates that utility expenses could rise significantly due to the loss of DFS, which previously covered some utility costs.

The discussion also touched on potential staffing adjustments in response to decreased flight activity. However, CPA representatives indicated that they are already operating with minimal staff necessary to maintain airport safety and operations. Any further reductions in force would require careful consideration and discussion with the board.

Senators inquired about the financial implications of the DFS exit and other recent announcements, estimating a potential revenue loss of around half a million dollars. The CPA is currently reviewing its budget to account for these changes.

The meeting concluded with a focus on the importance of expediting legislation to secure additional funding for the airport. The CPA has approximately $11 million in available funding for improvements, but the committee emphasized the need for a contingency plan to address ongoing financial challenges and ensure the airport's operational viability moving forward.