Burlington Airport presents FY26 budget, plans parking rate hike and leans on federal grants
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Summary
BTV Patrick Leahy Airport managers told the Burlington Board of Finance they expect modest operating expense growth for fiscal 2026, plan a $2-per-day parking increase to $14, rely on federal grants including a $34 million discretionary award, and will use passenger facility charges and other restricted funds for capital work.
Burlington’s airport directors on Wednesday presented a fiscal 2026 operating budget that managers said keeps expense growth limited while leaning on federal and other grants for a large terminal expansion.
The airport’s operating budget is roughly $24 million, officials said, with about 52 full‑time equivalent employees. Airport Director of Aviation Nick Longo said the airport expects operating expenses to rise about 1.2 percent year over year while projecting a 5.6 percent increase in operating revenues driven largely by higher parking, rental car and concession receipts.
Airport leaders said they will raise daily parking from $12 to $14 beginning in FY26, a change they estimate will add about $500,000 annually. “We’re right‑sizing the parking garage stream and being consistent with our competitors throughout the region,” Longo said. Marie Friedman, director of finance for the airport, added that actual garage revenues this year exceeded budgeted amounts and helped shape the new rate.
Why it matters: airport staff said passenger growth is the primary driver of most revenues. Longo told the board the airport expects about 930,000 scheduled seats and roughly 80 percent seat occupancy through calendar 2025, which would translate to about 1.5 million total passengers for the year and underpin parking, concessions and rental car revenues.
Airport staff also described how they plan to use restricted federal funds. The airport collects a $4.50 passenger facility charge (PFC) per ticket that, by federal rules, cannot be used for operating expenses and is restricted to capital and debt service uses; officials said roughly $1 million per year from PFCs is used to cover debt service and local shares on grants. Friedman said the airport recently secured FAA approval for a PFC application and is using PFC revenues to reimburse eligible local shares on Airport Improvement Program (AIP) grants.
Capital grants in hand: Longo and Friedman told the board the airport has “in hand” a $34 million congressional discretionary grant obtained with assistance from federal delegation, and an about $1.8 million grant from the Northern Border Regional Commission that will help fund mass‑timber components of the terminal expansion. They said grant timing and reimbursements have not been affected and that work on the terminal expansion will start in the coming weeks.
On grant‑eligible vs. ineligible project elements, Friedman said a small portion of the expansion — administrative office space on a proposed third floor and other nonpublic areas — is ineligible for AIP funding and totals under $2 million. She said the airport will cover ineligible costs from accumulated revenues and through interfund transfers that will later be reimbursed where eligible.
Public comment and airline partnership questions: Former City Councilor Sharon Buscher asked during public comment about what portion of the expansion is funded by federal dollars and whether the airport still relies on airline agreements to cover shortfalls. Longo explained the airport’s practice of consulting airlines on budgets and doing an annual true‑up: surpluses may be returned to airlines or spent on airline‑benefiting projects, and deficits can be covered by airline rates under the airline agreement. He said the airport had not had a deficit in 13 years.
Other operational items: Longo highlighted capacity and service changes, including a new South Carolina route starting May 30 and Project NEXT, a passenger experience initiative the airport will showcase June 4. He said runway rehabilitation and other maintenance are planned in coming months. Longo also noted a credit rating upgrade to Baa1 with a stable outlook from Moody’s for the Burlington Airport Authority.
Discussion and follow‑up: Councilors asked about transportation and parking access. Officials said ride‑share pickups dropped off and that the airport receives $2 per ride‑share pickup or drop‑off; they noted growing ride‑share use but said those services do not fully meet demand at early or late hours. Officials also said airport staff are working with regional municipalities and partners on ground transportation and concessions opportunities.
No votes were taken on the airport budget at the meeting; the session was for information only.
The airport presenters listed themselves as Marie Friedman, director of finance, and Nick Longo, director of aviation; both participated in the discussion and answered councilors’ questions.
