St. Louis Lambert Airport presents $247 million FY26 budget, cites airlines as primary revenue source for consolidated terminal plans

St. Louis Lambert Airport officials presented the airport’s proposed fiscal year 2026 operating and debt budget to the St. Louis Board of Aldermen’s Budget and Public Employees Committee on May 28.

Airport Director Rhonda Hamnibrigi and Antonio Strong, deputy director for finance and administration, said the airport expects roughly $253.2 million in total revenue for FY26 and a combined O&M and debt-service budget of about $247 million. “As an enterprise fund, for the city of Saint Louis, we derive our revenue from the users of the airport,” Antonio Strong said during the presentation.

Why it matters: The airport is in the design phase of a proposed consolidated terminal, and airline approval is required at 90% design. Airport staff said demonstrating fiscal responsibility to airline partners was a top priority while preparing the FY26 forecast.

Key budget details: Airport staff told the committee they forecast a 5.7% increase in O&M spending and a 12.1% increase in debt-service costs versus FY25, producing a 7.8% overall budget increase. Strong said the airport anticipates O&M of about $162.9 million and debt service of about $84.9 million for FY26.

Revenue drivers and assumptions: Strong listed three airline-related lines at the top of the revenue forecast and said the airport spent more than a year negotiating with signatory carriers to develop FY26 projections. Other revenue expectations include a 10% increase in concessions income based on new and expanded food-and-beverage leases, an 8.3% parking revenue increase after a rate hike that took effect April 1, and a 6.3% utility chargeback increase tied to higher utility rates.

Capital and financing: Strong told the committee the airport has outstanding debt of about $733 million and that the debt is repaid by airline charges, not by city taxpayers. He said the airport issued bonds in 2024 and closed on a $225 million revolving line of credit with PNC Bank to maintain project cash flow while bond issuance takes roughly six to seven months. He described that revolving credit as intended “to keep the projects moving along” for capital work tied to the consolidated terminal.

Cost pressures and notable line items: Staffing vacancies and overtime continue to affect the budget: Strong said vacancies declined from near 38–40% in a prior period to roughly 20–23%, which reduces the salary-savings factor but creates overtime needs until positions are filled. He also highlighted increases in health materials and supplies (about 25% up, citing inflation), higher administrative/investment management fees tied to expected bond issuances, higher contractual software licensing costs to strengthen cybersecurity, and a large increase in environmental capital assets to add a second glycol discharge line per contractor recommendation.

Process and next steps: Strong said the airport presented the proposed budget to airlines on March 11 and that the airport commission voted on it before it was included in the city’s FY26 budget. If the city approves the budget, rates and charges to airlines will be set to recover airport operating and debt costs. Committee members deferred detailed questions until the full board meeting concluded and the committee reconvened later in the morning.

Ending: Committee members thanked airport staff for the presentation and praised ongoing concession, parking, and terminal planning work. The airport officials remained available to answer follow-up questions after the council’s full board session.