The South Jersey Transportation Authority, which operates Atlantic City International Airport, is at risk of a credit downgrade after the collapse of Spirit Airlines sharply reduced traffic at the airport.

Fitch Ratings on Monday said it had placed the authority’s senior and subordinate transportation system revenue bonds on Rating Watch Negative, citing the financial impact of Spirit’s exit. The airline accounted for about 76% of passenger traffic at Atlantic City International, leaving the airport without daily commercial service.

The authority has two layers of debt, both with fixed interest rates and level repayment obligations of about $59 million a year through 2050, Fitch said.

While carriers including Breeze Aviation Group, Inc., American Airlines Inc. and Allegiant Travel Company are expected to help offset some of the service cuts, Fitch said the airport’s operating deficit could widen, weakening the authority’s financial position.

Spirit’s shutdown has rippled through the aviation industry in recent weeks, as competitors vie for market share. Spirit Aviation Holdings Inc. failed to secure emergency funding after months of financial strain, including bankruptcy filings in recent years and mounting losses. Rising fuel costs tied to conflict in the Middle East added pressure, while a proposed $500 million government bailout fell apart.

The Atlantic City Expressway, a toll road connecting the Philadelphia area to Atlantic City, is expected to generate enough toll revenue to provide a financial cushion for the authority and support airport operations, Fitch said.

Fitch said a downgrade could follow if the airport fails to replace Spirit’s traffic, leading to larger deficits that pressure the authority’s cash flow. The Rating Watch Negative could be resolved to stable “if the authority provides structural or financial risk mitigation that supports its ability to maintain financial metrics consistent with the current rating level,” according to the rating report.

©2026 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.