GIAA outlines finances, capital projects and $9.25M aviation-fuel tax claim
February 16, 2026 | General Government Operations and Appropriations , Legislative, Guam, International
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The Guam International Airport Authority told members of the Legislature’s joint oversight committee on Feb. 16 that airport finances are improving but remain fragile, and that the authority is pursuing multiple capital-improvement projects while monitoring debt-service covenants.
GIAA representatives said the authority monitors its debt service coverage ratio monthly and budgets conservatively. The authority reported it budgeted about $6.7 million in general-merchandise concession revenue for FY2026; GIAA staff said removing that projected revenue could reduce the authority’s debt service coverage ratio from a projected 1.61 to about 1.19 in a full-year scenario.
GIAA noted Moody’s affirmed the airport’s Baa2 (investment grade) rating but changed the outlook to negative in July 2025, and Moody’s flagged risks including weaker inbound markets from Japan and Korea and the potential for debt service coverage to fall below 1.1x and days cash on hand to decline below thresholds.
On federal funds and capital projects, the airport summarized about $100.8 million in CIP activity (roughly $97.4M FAA-funded and $9.7M airport dollars). Projects under way include terminal-floor replacement (Terrazzo flooring, nearing completion expected April 2026), apron rehabilitation (completion expected June 2026), roof replacement and future solar-panel installation (phased), a cargo apron (planning and design), accessibility (ADA) improvements, and replacement of passenger loading bridges (5 units ordered with staged delivery and full delivery expected by January 2027).
GIAA also told the committee it expects a remittance of prior-year aviation fuel tax (AFT) owed by the government of Guam. The authority said the prior-year AFT due, covering Jan. 2018 through Sep. 2023, totals $9,254,625; FAA guidance referenced by the airport notes that a lump-sum remittance would avoid interest. Senators pressed for reconciliation with BBMR and DOA, and committee members said they would not advance appropriation bills until disputed fiscal-year accounting issues reported by BBMR are reconciled.
GIAA acknowledged operational issues raised in questions from senators — including escalator/elevator maintenance and a recent baggage sensor failure that was fixed the same day — and said it is replacing aging equipment as part of a multi-year plan. The airport also described ongoing coordination with GVB on route development and with the lieutenant governor’s office on a potential Philippine visa-waiver initiative intended to help rebuild source-market air service.
No appropriations or formal votes were made at the hearing; senators instructed agencies to reconcile fiscal accounting questions about FY2025 excess revenue and to report back before moving appropriation proposals.
GIAA representatives said the authority monitors its debt service coverage ratio monthly and budgets conservatively. The authority reported it budgeted about $6.7 million in general-merchandise concession revenue for FY2026; GIAA staff said removing that projected revenue could reduce the authority’s debt service coverage ratio from a projected 1.61 to about 1.19 in a full-year scenario.
GIAA noted Moody’s affirmed the airport’s Baa2 (investment grade) rating but changed the outlook to negative in July 2025, and Moody’s flagged risks including weaker inbound markets from Japan and Korea and the potential for debt service coverage to fall below 1.1x and days cash on hand to decline below thresholds.
On federal funds and capital projects, the airport summarized about $100.8 million in CIP activity (roughly $97.4M FAA-funded and $9.7M airport dollars). Projects under way include terminal-floor replacement (Terrazzo flooring, nearing completion expected April 2026), apron rehabilitation (completion expected June 2026), roof replacement and future solar-panel installation (phased), a cargo apron (planning and design), accessibility (ADA) improvements, and replacement of passenger loading bridges (5 units ordered with staged delivery and full delivery expected by January 2027).
GIAA also told the committee it expects a remittance of prior-year aviation fuel tax (AFT) owed by the government of Guam. The authority said the prior-year AFT due, covering Jan. 2018 through Sep. 2023, totals $9,254,625; FAA guidance referenced by the airport notes that a lump-sum remittance would avoid interest. Senators pressed for reconciliation with BBMR and DOA, and committee members said they would not advance appropriation bills until disputed fiscal-year accounting issues reported by BBMR are reconciled.
GIAA acknowledged operational issues raised in questions from senators — including escalator/elevator maintenance and a recent baggage sensor failure that was fixed the same day — and said it is replacing aging equipment as part of a multi-year plan. The airport also described ongoing coordination with GVB on route development and with the lieutenant governor’s office on a potential Philippine visa-waiver initiative intended to help rebuild source-market air service.
No appropriations or formal votes were made at the hearing; senators instructed agencies to reconcile fiscal accounting questions about FY2025 excess revenue and to report back before moving appropriation proposals.
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