FLL budget & master plan: CPE rises, airlines tentatively back major phase‑1 projects including Terminal 5

Fort Lauderdale‑Hollywood International Airport staff presented the airport’s proposed FY‑26 budget and a multi‑year master plan to the Broward County Board of County Commissioners, and reported a preliminary agreement with signatory airlines to back a multi‑billion‑dollar program that would fund front‑door capacity and terminal expansion projects.

"The airline business is not the same as the cruise business today," Mark Gale, Aviation Director, told commissioners, opening a presentation that covered activity, revenue performance and capital projects. Gale said FY‑25 expected enplanements are down from earlier forecasts and that airport staff set conservative FY‑26 assumptions to reflect airline scheduling and market headwinds.

Staff reported FY‑25 total passenger enplanements projected at about 16.13 million and said FY‑26 is budgeted to decrease modestly; the airport’s budgeted cost per enplaned passenger (CPE) for FY‑26 is $11.02. Staff noted those figures were supported in prior years by federal pandemic assistance; the airport has used CARES, CRRSAA and ARPA funds and carried forward about $5 million of ARPA into FY‑26.

Gale described a FY‑26 capital improvement program totaling about $475 million, of which terminals and the Terminal 5 program are the largest elements. Terminal 5 costs have risen during the project’s design phase; Gale said the program’s scope and market escalation lifted earlier estimates and that, after further design and cost reconciliation, signatory airlines agreed to a supplemental ballot to cover approximately $268 million in Terminal 5 costs on their portion of the program.

Gale said, as a package, airlines have expressed support for roughly $3.2 billion in additional general airport revenue bonds and, with other financing sources (grants, PFCs and local contributions), a roughly $4.8 billion program of projects. The package would pre‑approve a list of phase‑1 projects, including an automated people mover (APM), intermodal center (IMC), Palm Garage demolition and reconstruction, supplemental curb access and Terminal 5 work. Staff emphasized the agreement remains subject to legal review and exchange of final documents.

Airport finance staff reported that operating revenues are budgeted to grow about 6.9 percent but that operating expenses are rising as well, driven by contractual increases, TSA employee screening changes, higher equipment maintenance costs (notably baggage systems) and additional airfield pavement repairs. Jason Watkins, deputy finance lead, said about $3.3 million of the contractual services increase is due to a TSA requirement for expanded employee screening; about $3.3 million in equipment maintenance costs reflects a new baggage‑handling services bid.

On security and policing, the airport described the county‑wide conversation about law‑enforcement costs and said it is pursuing a formal analysis of alternatives to the current sheriff‑provided model. Gale said staff have visited other airports and that the county will engage a consultant to produce an apples‑to‑apples comparison of law‑enforcement models and costs.

Staff updated commissioners on the APM and IMC programs. The APM design and procurement planning is advancing; staff completed a National Environmental Policy Act review in December 2024, completed a program definition document and plan an industry day for early November to gather market feedback before soliciting proposals. The IMC, which includes 7,000 additional parking spaces in its initial phase, is in program‑definition phase; the airport estimates IMC construction and initial operations toward 2030–2032, and staff said the Palm Garage would be demolished and rebuilt as part of later phases, producing a net long‑term increase in parking capacity.

Gale and staff addressed community concerns about flooding resilience and airfield repairs. He said airport stormwater projects are in construction (Edgewood Park work expected to complete by December) and that airfield pavement work—about $4 million in this budget cycle—was charged to rates rather than amortized by bond financing because of current financing timing.

On Terminal 5 procurement, Gale said the airport’s delivery relies on a relationship model with JetBlue as the sponsor, which in turn contracts designers and contractors; the airport and JetBlue are working toward a guaranteed maximum price as design reaches 100 percent. Gale emphasized the program is necessary to preserve gate capacity and enable later phases of the master plan.

Airport staff also scheduled an Aug. 27 community town hall on North Perry Airport operational and safety questions; staff said they have invited FDOT and the FAA and will use the meeting to clarify roles, review safety assessments and collect community input.

No formal votes were recorded during the presentation. Airport staff said they will return with final budget documents, legal agreements with airlines, and procurement timelines for the APM and IMC. Commissioners asked staff for briefings in advance of the public hearings and for clearer community outreach on North Perry and homeless‑client outreach at FLL.

What’s next: staff will host an industry day for the APM/IMC program in early November, continue legal exchange with airlines to finalize any use‑and‑lease agreement changes, and return to the commission with final budget and rates and charges for public hearing.