Climate Resilience Is the New Credit Test for Airports

• Why airports’ location and size make them especially sensitive to climate hazards.

• How extreme heat and flooding are already disrupting airport operations.

• The difference between having a climate resilience “plan” and measurable KPIs investors can trust.

• Case studies from airports integrating resilience into capital projects.

• Cost-effective best practices for smaller regional airports.

When Luton Airport in the U.K. shut down in 2022 after extreme heat warped its runway surface, the disruption was a warning shot. Airports across the globe are confronting a new era where climate events directly threaten infrastructure, capacity, and revenue. According to S&P Global Ratings, weather-related delays increased more than fourfold at European airports between 2011 and 2023.

Dr. Paul Munday, Director and Global Climate Adaptation and Resilience Specialist at S&P Global Ratings, cautions that airports’ unique characteristics make them particularly sensitive.

“Airports’ fixed locations and large geographical footprints, combined with their importance as economic hubs, can make them especially vulnerable to the impacts of climate hazards,” he explains. Flat, low-lying areas near rivers, coastlines, or peri-urban zones often amplify the risks.

Heat, Floods, and the New Operational Baseline

While global averages show North American airports are less exposed than some peers, regional hazards still loom large. Flooding—whether storm surge, heavy rainfall, or river overflow—poses a particular threat in the U.S. Northeast and in Canada. Airports in the Caribbean and Florida remain highly exposed to severe storms.

Even where datasets show lower average exposure, extremes still bite.

“Extreme heat can impact airport infrastructure. For example, it can damage runways as seen at Luton Airport in the summer of 2022,” Munday notes. Heat also reduces aircraft performance, forcing payload reductions that cut into airline revenue.

Flooding incidents are already reshaping airport investments. Auckland Airport’s 2023 flooding crisis drove investments in stormwater management networks, flood modeling, and the decision to construct a second runway further inland. In Puerto Rico, Luis Muñoz Marín International Airport has undertaken a hydrological study and adaptation plan to better protect against hurricanes and flooding.

From Plans to KPIs: What Investors Look For

The good news is that airports are ahead of other transport sectors in recognizing the need for adaptation. S&P found that 87% of the airports it rates have disclosed some form of climate resilience plan. But plans alone aren’t enough.

“Metrics and targets capture entities’ progress (and success) in implementing adaptation and resilience measures,” Munday says. For example, if flooding is identified as a major hazard, an airport may set a target to harden a certain percentage of assets against specific flood depths. The key is that scenario-based projections must tie directly to measurable goals—data that investors and insurers can use to assess resilience.

Without this, Munday warns, adaptation remains difficult to evaluate. “Entities may include a target to harden a certain number—or percentage—of assets against damaging flood depths… those flood depths being determined based on a scenario analysis that leverages historical and forward-looking climate projections,” he explains.

Integration Into Capital Projects

Too often, resilience is treated as a standalone initiative. But forward-looking airports are weaving it directly into capital improvement programs and master plans. Hong Kong International Airport integrated resilience measures into its third runway development, while Puerto Rico’s hydrological work is shaping its hurricane preparedness strategy.

For consultants and designers, this integration is a business imperative. As Munday notes, resilience can touch “various aspects of corporate strategy, such as investment in technology and adaptation techniques, insurance scope, funding allocation, and governance.” Airports that embed these considerations upfront may avoid costly retrofits later—and strengthen their competitive edge in attracting investment.

Smaller regional airports face a different equation. Lacking the scale and resources of major hubs, they often default to reactive measures. Yet, some adaptations are within easy reach. “Adapting to extreme heat is relatively cheap, with measures such as the use of heat-resistant runway materials, which are inexpensive compared to more capital-intensive adaptation measures needed for hazards such as tropical storms,” Munday says.

Even modest steps—drainage improvements, material upgrades, or scenario-based assessments—can extend asset life and reduce downtime. For regional leaders, the question is how to prioritize limited capital for maximum resilience impact.

The Cost of Inaction

Operational strategies today often account for extreme weather but may overlook worsening future projections. This creates a blind spot: managing yesterday’s climate while underestimating tomorrow’s. And while S&P doesn’t expect climate hazards to directly impact airport credit quality in the short to medium term, the long-term picture is clear. Exposure to hazards will rise from 13% of airports in the 2020s to 31% by the 2050s, with the steepest increases in Latin America, the Caribbean, and Europe.

Munday underscores the competitive dimension: “Those companies that adapt faster and implement adaptation and resilience interventions ahead of time could improve their competitive position.” Airports with diverse revenue streams and forward-looking adaptation strategies will be better positioned to weather not only storms and heatwaves, but also the scrutiny of investors, insurers, and passengers.

Climate resilience is shifting from a sustainability issue to a balance-sheet issue. For airport executives and consultants, the message is clear: robust adaptation strategies, measurable KPIs, and integrated planning are not optional. They’re the new standard for securing financing, safeguarding operations, and staying competitive in a volatile climate.