Los Angeles International Airport's long-awaited Automated People Mover, the Skylink, is sitting at 99.6% complete, according to Fitch Ratings. Travelers to LAX can watch the trains run, but can’t ride them. This elevated train is expected to transform airport traffic and connect directly to the Metro ahead of the 2028 Olympics, shuttling passengers and employees between terminals, a new rental car center, parking lots, and the rideshare lot. But for a project so close to the finish line, there’s a surprising amount of financial scrutiny and fresh uncertainty, thanks to escalating tension between airport management and its contractor.
Fitch Ratings recently moved the $1.2-billion senior bond for the project to its negative watch list, downgrading the California Municipal Finance Authority’s bond issued on behalf of project contractor LAX Integrated Express Solutions, or LINXS, deeper into junk territory. Seth Lehman of Fitch noted the project's “precarious position” with a limited safety margin before it could breach its longstop completion dates in October and December 2026. This vulnerability raises the specter of default risk, which could lead to project termination and force Los Angeles World Airports (LAWA), which manages LAX, to find a new contractor, adding even more delays to the $3.3-billion endeavor.
Fitch cited “rising discord” between the parties, despite both having economic incentives to finish. This discord spilled into public view when LINXS filed a lawsuit last month against the city of Los Angeles, accusing LAWA of misleading the public about delays, changing project drawings, and creating obstacles. This comes after a Los Angeles County civil grand jury report last year investigated more than $880 million in change orders LAWA paid to LINXS. The grand jury largely blamed LINXS for the delays, finding that as a design-build contractor, it should have caught early design flaws. The report also suggested LINXS may have exploited the urgent need to finish for high-profile sporting events, leveraging change order demands.
Originally slated for a 2023 opening, the Skylink missed its latest goal of being operational before this summer’s World Cup, prompting L.A. City Councilmember Monica Rodriguez to introduce a motion for LAWA to report on the ongoing delays. Officials now hope for an opening later in 2026. However, extensive 30-day testing must be completed before the train can open, a process that could push the operational date further into the year. Neither LAWA nor LINXS commented on the most recent bond rating or the lawsuit. So, while the trains are nearly ready to roll, it seems the arguments over who pays for them are just getting started.