Airport Revenue Bond

An Airport Revenue Bond is a type of loan issued by an airport to raise funds for constructing or improving facilities like runways, terminals, or parking. Investors buy these bonds, essentially lending money to the airport. The airport promises to pay back the investors over time with interest, using revenue generated from airport activities—such as passenger fees, landing fees, and retail income—rather than relying on taxpayer money. These bonds are a way for airports to fund large projects while assuring investors that their returns will come from airport revenues.