The busiest airport in New England is tapping the municipal bond market to remodel its facilities and keep up with passenger growth.
The Massachusetts Port Authority, or Massport, plans to borrow about $812 million this week to fund renovations at Boston Logan International Airport. Proceeds from the sale will be used to finance a new parking garage, roadway enhancements, improvements to Terminal E and upgrades to the baggage handling systems.
The offering is expected to price on Thursday, adding to the roughly $8 billion that airports have borrowed from the muni market this year, according to data compiled by Bloomberg. Facilities across the country are undergoing multi-billion dollar capital plans to expand and upgrade aging infrastructure.
“From a credit standpoint, the airport sector has a more positive story going on with it right now than maybe from a few years ago,” Kim Olsan, senior portfolio manager at Newsquare Capital said. “I think that the market can absorb a lot more airport supply, especially in the hub airports.“
Last year, US airports sold a record $24 billion of municipal debt, with first-half sales topping $10 billion, the strongest start to a year since at least 1990. For 2026, supply in the first half is about 20% lower than the same time period last year, although analysts expect more issuance to come.
Massport’s renovations are part of its broader $4 billion capital plan to manage the authority’s infrastructure needs across real estate, maritime and aviation.
“Are we sort of competing with other airports? Kind of, yes,” said Jennifer Mehigan, director of media relations at Massport. “Passengers have a choice and we want our passengers to choose to travel in and out of Logan.”
Bank of America and Loop Capital Markets are lead managers on the sale. The airport expects to borrow $1.3 billion from the muni market in the future to finance additional projects.
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