USA: Every rail car for LAX’s long-delayed airport train has been built and is already being tested — but the $1.2 billion in bonds financing the project just got pushed deeper into junk territory, a warning sign that has little to do with construction and everything to do with an escalating dispute between the airport and its contractor.

LAX Automated People Mover train testing on the elevated guideway over Century Boulevard
LAX Automated People Mover train testing on the elevated guideway over Century Boulevard. Illustrative photo. Photo: Courtesy of Los Angeles World Airports and LAX Integrated Express Solutions.

Fitch Ratings placed the Automated People Mover’s senior bonds on negative watch and downgraded them from BB+ to BB, according to the Jefferson City News-Tribune, citing Los Angeles Times reporting. The 2.25-mile system, called Skylink, is more than 99% complete, but Fitch warned the project is running out of room before two contractual deadlines: an Oct. 8, 2026 lenders’ longstop and a Dec. 8, 2026 project longstop.

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“There’s a big difference between 99.6% and 25%”

Fitch analyst Seth Lehman told the Los Angeles Times the physical construction risk is essentially gone: “All the hard infrastructure of the project is there; all rail cars that serve the project are being tested.” The remaining risk is contractual and financial, not technical — a distinction Lehman drew explicitly, noting the gap between a project that’s barely started and one that’s effectively finished but still hasn’t opened. Even so, extensive testing and operational reviews must be completed before Skylink can carry passengers, which could push the opening into late 2026.

A missed World Cup, and mounting political pressure

The $3.3 billion train — the centerpiece of LAX’s broader $30 billion overhaul — had been targeted to open before the 2026 FIFA World Cup as a dress rehearsal ahead of the 2028 Olympics, but missed that window entirely. That prompted Los Angeles City Councilmember Monica Rodriguez to introduce a motion, which passed, requiring Los Angeles World Airports to report back on the repeated delays. If the Oct. 8 or Dec. 8 longstop dates are breached, Fitch says LAWA could in theory move to terminate the contract with LINXS, the public-private partnership building the line — though Fitch also noted that outcome would be costly and disruptive enough that the airport would likely avoid it if possible. The announcement does not specify a firm passenger-service opening date.

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