An automated vehicle that will reduce traffic and make it easier for travelers to take public transit to and from LAX appears headed for another delay.
The LAX Automated People Mover is now expected to be completed no sooner than April 2025, according to a report posted by Fitch Rating Service, one of three major bond rating agencies in the U.S.
The 2.25-mile system aims to improve the passenger experience, alleviate traffic and connect one of the busiest airports in the world with better public transit with six new stations along its route, connecting to parking structures, car rental facilities and a new LA Metro transit facility in El Segundo.
The project is the centerpiece of a multi-billion dollar modernization effort at LAX.
The bulk of the project is already done with 93% of station work and 94% of guideway complete, according to a December 2023 update from the California Public Utilities Commission.
But the report released by the bond rating agency warned that months of disagreements between Los Angeles World Airports and the company chosen to operate the system have led to delays and a strained relationship between the two partners.
Those issues have led to Fitch downgrading the project’s bond rating.
“Although the project is around 96% complete, the Negative Outlook reflects the likelihood that any unresolved construction issues, further deterioration of the relationship between the two parties, or further disputes during the testing and commissioning phase could result in additional material completion risk concerns,” the agency wrote in its January 19 report.
Fitch also warns that the project only has a 16-day cushion between its current construction timeline and its lender’s longstop date, which essentially marks the deadline for construction to be completed. If that deadline is passed, it’s unclear if the project will be able to draw construction funding.
The two sides do, however, appear likely to come to agreement on an extension, Fitch wrote, citing a recent technical advisory report.
It’s the latest in a series of setbacks for the project, which, like many Los Angeles transportation projects, has run into construction delays, rising costs and legal disputes.
The system’s automated cars were delivered in 2022 and testing was expected to take place that year ahead of a 2023 completion date. But in August 2023, the project was delayed until 2024 with Fitch’s bond rating report again cited as the newsbreaker.
Even if construction were to be completed soon and with cooperation from both parties, Fitch warns that the project will still need to “undergo a rigorous testing and commissioning process” that it says is not expected to be completed until April 2025.
KTLA reached out to LAWA for comment regarding the new timeline suggested by Fitch in its bond-rating report. A spokesperson did not comment on any schedule delays, but said the airport authority was “in active discussions with the Automated People Mover Contractor to resolve outstanding claims.”
No additional information was made available.
Another automated people mover project in Los Angeles has run into its fair share of roadblocks.
The $2 billion Inglewood Transit Connector Project, which would connect the Metro K Line to Inglewood and provide easier access to venues like SoFi Stadium, Kia Forum and Intuit Dome, has also run into several delays in its preliminary stages.
That system, which will be owned by the City of Inglewood, was originally expected to begin operations in time for the 2028 Summer Olympics with construction beginning later this year.
That project has since been delayed until at least 2030, missing the Olympics and several other high-profile sporting events, including the 2026 FIFA World Cup, the 2026 NBA All-Star Game and Super Bowl LXI in 2027.