New York, N.Y. - Fitch Ratings has once again given Key West International Airport’s financial profile an A- rating on approximately $41.3 million of airport revenue bonds. The credit rating agency released the analysis Wednesday, January 24, 2024, with a financial outlook of “stable.”

Key rating drivers included revenue risk and primarily leisure-based traffic. EYW's small, predominantly destination market benefits from diverse airline services supporting an expanding regional service area, according to the analysis. EYW has also seen significant growth in enplanements and is currently exceeding pre-pandemic traffic levels, supported by Key West's status as a well-anchored tourist destination on the East Coast.

“This is fantastic news for our airport, and maintains the rating we have received in the prior year,” said Richard Strickland, Executive Director of Airports.

EYW currently serves an enplanement base reaching approximately 700,000 passengers, which is well above the 400,000 level seen prior to the pandemic, with considerable dependence on discretionary leisure traffic. The airport's scale of operations is mitigated by a largely origination and destination traffic profile of approximately 96 percent of enplanements and lack of material competition. However, some carrier concentration risk exists with American Airlines (B-/Stable) comprising approximately 47 percent of passenger traffic.

The assessment also reflects the airport’s commitment to Concourse A, currently under construction, as well as renovations to the existing landside terminal building. Approximately 28 percent of the project is debt funded by the series 2022 bonds. The remainder of the project is financed by a combination of federal and state grants, coupled with Passenger Facility Charge (PFC) receipts. Not including the Concourse A project, the airport's capital improvement plan (CIP) (2023-2028) totals $59.9 million, and is funded on a PAY-GO basis by grants and airport funds.

Fitch Ratings Inc. is an American credit rating agency and is one of the "Big Three" credit rating agencies, the other two being Moody's and Standard & Poor's. It is one of the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission in 1975.