ATL airport projects $88 million revenue increase for fiscal year 25

The Atlanta City Council convened on May 21, 2025, for the FY2026 Budget Briefings, focusing on the financial outlook for the upcoming fiscal year. The session highlighted key revenue and expense projections, emphasizing the iterative process of developing rates and charges for airlines based on the operating expense budget.

The meeting began with a discussion on revenue projections, revealing an anticipated increase of $88 million over fiscal year 2025, and $100 million above previous projections. This growth is largely attributed to terminal rentals, which are influenced by the true-up process that adjusts charges based on actual expenses incurred in the prior year. Challenges in forecasting concessions revenue were noted, particularly due to ongoing projects affecting operations.

The cost per emplanement, a critical metric for airline charges, is projected to rise from $6.79 in fiscal year 2024 to $8.21 in fiscal year 2026. This increase is primarily driven by higher terminal rental fees linked to increased debt service from capital projects at Hartsfield-Jackson Atlanta International Airport. While landing fees remain relatively stable, parking revenue is expected to see significant growth following a recent rate increase, the first since 2017, which was necessary to align with inflation trends.

The council also addressed expense increases, particularly in personnel and contract services. Personnel costs are projected to rise by approximately $26.9 million, driven by a surge in demand for operational services despite stable passenger numbers. The increase includes costs associated with converting temporary positions to permanent roles and adjustments for benefits and salary increases.

Contract services are also experiencing inflationary pressures, although the impact has lessened compared to previous years. The council noted that these financial adjustments are essential for maintaining airport operations and meeting the growing demands of travelers.

In conclusion, the budget briefing underscored the city's commitment to adapting its financial strategies in response to evolving operational needs and economic conditions, setting the stage for further discussions and decisions in the upcoming fiscal year.