Airport Financial ModelFree Financial Model Download

An airport project finance model forecasts aero and non-aero revenue (landing fees, retail, F&B, parking, lounges) driven by passenger volume growth, with realistic capex spending across construction and operating phases, to determine whether the airport can service non-recourse senior debt at a target minimum DSCR of 1.30x and deliver target equity IRR (typically 11–14%) over a 40-year concession period. The model answers the central project finance question: does the cash flow generation support the debt tenor, and what is the equity return profile?

Revenue streams include aeronautical revenue (landing fees, passenger facility charges, parking, allocated per passenger) and commercial revenue (retail, F&B, concession guarantees) which grows faster than aeronautical revenue due to penetration improvement. Costs are modelled as fixed cost categories (staff, utilities, maintenance, security, insurance) escalated by CPI, plus a variable per-passenger overlay and a concession fee to the government (typically 5% of total revenue). The balance sheet is project-finance specific: gross PP&E rolls forward with construction capex, IDC capitalisation in Year 4, and maintenance capex additions, while a DSRA (debt service reserve account) is funded at financial close and released at debt maturity. Debt is structured as a 25-year annuity (constant annual debt service) with a DSRA target equal to 6 months of forward debt service.

Infrastructure investors, lenders, and governments use airport models to assess project viability, stress traffic downside scenarios, confirm that DSCR floors don't breach lender covenants, and compare projected equity returns to the cost of capital (WACC target 10–12%).