...Summary: The rating reflects Philadelphia International Airport's (PHL) large service area with a solid base of O&D traffic offset by a high degree of concentration in American Airlines (BB¡/Stable). PHL's strong residual airline agreement provides for full recovery of operating expenses and debt service costs, but narrow coverage and liquidity. Rising airline costs and elevated leverage are expected to continue as future debt costs are passed through to airlines, though signatory carriers have approved the capital plan, signaling their ongoing commitment. Single-Carrier, Hubbing Exposure (Revenue Risk -- Volume: Midrange): PHL serves the large and stable Philadelphia metropolitan area of around 10 million O&D enplanements annually. PHL is a leading connecting hub for American Airlines, which lends to sizable carrier concentration of 70% and connecting traffic exposure of 33%. Service reduction risk is partially mitigated by American's long-standing presence at the airport, which Fitch...
