The Chattanooga Metropolitan Airport Authority’s board of commissioners voted to approve a balanced budget for fiscal year 2026 that reflects significant capital projects and a move to outsource professional services beyond the scope of the small staff, though the airport will take charge of more contractual services in-house.
The $36.7-million budget reflects about six years of betting on growth that has now become a reality, said Vice Chair Daniel R. Jacobson.
“Certainly it takes investment to make things happen,” Mr.
Jacobson said.
But, “There’s ample wiggle room here, because we don’t always know what the future holds,” said board member Santosh Sankar.
Operating expenses are $25.3 million, with 47 percent more than last year going to professional services such as consulting, lobbying, legal and accounting services.
The board approved $30,000 for a one-year consulting contract with Holland & Knight as state government relations council. The firm tracks legislation, meets with legislators and commissioners in the governor’s cabinet, and advocates for legislation on the airport’s behalf.
Attorney James Weaver told the board that the “generational change” happening now in air service at the federal level will work its way to the state level.
“We’re going to see a lot of change,” Mr. Weaver said.
The airport will spend its net operating revenues of $11.4 million on capital projects ($9.7 million) and debt service ($1.5 million).
“Infrastructure is going to be a big investment for us this year,” said Vice President of Finance and Administration Tena Keith.
Construction of a second parking garage will begin this fall. Ms. Keith said the cost of the project will be split between FY26 and FY27 and funded with a mix of state and federal grants, CMAA funds and loans to be determined.
Fixed-base operators, salaries and benefits make up 80 percent of the airport’s expenses. Rental property revenues are up 11 percent. Rental car revenues dropped 1 percent, landing at 8 percent of total revenues.
Terminal restaurant renovations will be completed in August. West Side General Aviation renovations and expansion will be completed in October. Officials expect construction bids for a T-hangar and box hangar project to be submitted this fall, too.
Though growth is in the airport’s future, board Chair James Hall urged the board to deal with what’s “on the plate” now.
“We need our fans to show up,” Chair Hall said to the Chattanooga community.
Year over year, seat capacity will jump 37 percent in June when Spirit Airlines begins service to Fort Lauderdale, Newark and Orlando. Seat capacity will jump 40 percent in September as United Airlines adds a fourth daily flight to Chicago.
Chattanooga has already celebrated new service to Las Vegas, Punta Gorda and La Guardia in the last year.
“We’ve got a lot of seats that we need to fill,” said airport President and CEO April Cameron. “Our work’s kind of cut out for us,” she said.
The airport will host its third-annual air service summit in October for current and prospective air carriers.
“It’s always a fun time to show off our city,” Ms. Cameron said.