- Salt Lake City International Airport will raise parking fees starting in July.
- The airport projects to spend $260 million in debt service as it pays off bonds for new facility.
- Officials anticipate challenges due to rising jet fuel prices and industry changes.
SALT LAKE CITY — It will soon cost a little more to park at Utah's largest airport.
Salt Lake City International Airport plans to raise its parking fee from $40 per day to $45 per day, and its economy lot price from $12 per day to $14 per day, beginning in July. The move coincides with the airport's next fiscal year budget, but also comes as its parking lots are full more frequently, airport officials said.
"The garage is closed almost every week in the middle of the week, due to business travel and people using that source," said Shaun Anderson, the airport's acting chief financial officer, as he helped present the airport's proposed 2027 fiscal year budget to the Salt Lake City Council last month.
City leaders previously allowed the airport to raise the fee to $45 when the need arose. The increase in the economy lot also mirrors market trends, he added. It's projected to generate a 7% increase in revenue, or $77.3 million total, which accounts for over 40% of the airport's estimated 2027 fiscal year concession revenue.
Airport officials say Utah Transit Authority's TRAX service to the airport and other transit options are alternatives that travelers can consider.
They also negotiated a new car rental deal that will go into effect this July, which is expected to increase revenue there by by 40% to nearly $60 million. The deal includes new options for customers, Anderson said.
Salt Lake City International Airport projects to receive about $189.2 million in revenue from concessions in the upcoming fiscal year, and $382.9 million in total revenue from airlines. It's requesting to add 19 full-time employees in the upcoming year.
While its revenue numbers far exceed the estimated $259.5 million in operating expenses, most of the projected surplus is slated to go toward new capital projects and repaying the $4.1 billion in debt from the buildout of the new facility that's 14 years in the making.
"We're beginning to pay all of the debt now, and so that number is pretty substantial," said Bill Wyatt, the airport's director.
Debt service is projected to be about $260 million, and the airport is still a few years away from reaching its debt service peak, Anderson added. He notes that the airport could begin refunding its first bond as early as next year to find savings.
It's up to the Salt Lake City Council to finalize the airport's 2027 fiscal year budget, along with the rest of the city budget, which it will begin sorting out over the next two months.
Handling a 'weird time' in aviation
The upcoming fiscal year figures to be a monumental one for the project, as the airport will open 11 new gates in October to complete the final initial buildout phase. It would give the new facility 94 total gates — nearly double what the old airport provided.
It also figures to be an interesting year. Nearly 14.5 million passengers are projected to fly out of the airport during the next fiscal year, which would be a 2.4% increase from where the current fiscal year is ending.
However, Wyatt said he's tracking many new challenges facing the airline industry, which could impact the numbers that the airport presented.
Jet fuel prices have soared in recent months, along with gasoline prices, which began shortly after the Iran war. Many airlines have added surcharges or raised costs to balance out the impact.
"It's a very weird time in the world of commercial aviation right now. ... The situation in the Middle East is definitely having an impact," he said. "Currently, that impact in the U.S. is on fares. That ultimately does affect the number of people who travel, and that could have some impact on our budget."
Wyatt spoke before Spirit Airlines went belly up on Saturday, which airline experts say could also affect airline prices. Spirit Airlines left Salt Lake City last year amid its bankruptcy, but the airline's legacy — beyond the jokes about its service — is that it helped keep airline fares low among its competitors.
Barclays airline analyst Brandon Oglenski told CNBC on Monday that he suspects its demise will raise industry pricing, as it removes "excess point-to-point capacity." Some airlines, including Utah-based Breeze Airways, have already jumped in to take lost service, the outlet noted.
Yet, Salt Lake City International Airport officials feel like the airport is still "in a really strong position" despite the new challenges in the market. They also foresee some new travel opportunities beginning in the 2027 fiscal year, thanks to a big event happening downtown.
Airport officials have held discussions with Delta Air Lines and others about potential charter service for next year's Salt Lake Temple Celebration, which is expected to attract 3 million to 5 million people over its six-month open house.
Foreign airlines might add temporary service to Salt Lake City next year, Wyatt said. He doesn't believe it will create permanent service, but it would serve as a sample for what Utah's capital city has to offer for future consideration.
