20240214-002 Finance Memo — original pdf

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MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: February 14, 2024 SUBJECT: Austin-Bergstrom International Airport (AUS) Update December 2023 Financial Results Passenger traffic totaled 1,802,593 in December 2023, an increase of 5.0% compared to December 2022. Average daily departures have increased from 237 in December 2022 to 261 in December 2023, an increase of 24 daily departures or 10.1%. Table #1 Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements FY 2024 FY 2023 Variance December December Fav (Unfav) FY 2024 YTD FY 2023 YTD Variance YTD Fav (Unfav) 920,528 879,932 4.6% 2,892,119 2,802,184 1,169,216,644 1,069,390,635 9.3% 3,598,240,392 3,364,582,390 13,539 12,482 8.5% 37,608 38,449 3.2% 6.9% (2.2%) $24,869,685 $21,221,998 $3,647,687 $79,481,621 $67,849,196 $11,632,425 $11,778,365 $10,617,696 ($1,160,669) $36,007,709 $27,285,517 ($8,722,192) $18,564,748 $16,527,026 ($2,037,721) $56,375,414 $45,021,985 ($11,353,429) Net Income Before Federal Relief $6,304,938 $4,694,972 $1,609,966 $23,106,207 $22,827,211 $278,996 Federal Relief Reimbursement $0 $14,509,585 ($14,509,585) $0 $15,995,781 ($15,995,781) Net Income After Federal Relief $6,304,938 $19,204,557 ($12,899,619) $23,106,207 $38,822,992 ($15,716,785) Table #1 illustrates December 2023’s enplanements totaled 920,528, 4.6% higher than December 2022. Landing weights totaled 1.17 billion pounds in December 2023 representing an increase of 9.3% compared to December 2022. Cargo volume totaled 13,539 tons in December 2023 representing an increase of 8.5% compared to December 2022. The decline in cargo volume YTD compared to the prior year is the result of declines in mail cargo and tonnage carried from major cargo carriers December 2023 operating revenue totals $24.9M, an increase of 17.2% or $3.6M compared to December 2022. The increase in operating revenue results from increased passenger traffic and updated airline rates for FY24. December 2023 operating revenue is composed of 48.4% airline revenue, 50.4% non-airline revenue, and 1.2% interest income. Airport operating expenses totaled $11.8M for the month, an increase of 10.9% or $1.2M compared to December 2022. The increase in operating expenses results from higher personnel costs from increased headcount and wage adjustments, and contractual costs including parking services, consulting contracts, and baggage handling system maintenance. AUS reported a $6.3M surplus in December 2023 compared to a surplus of $4.7M (before federal relief funding) in December 2022.  Fiscal Year 2024 Financial Results FY2024 Year to Date (YTD) Operating Revenue totals $79.5M compared to $67.8M in FY2023, a 17.1% increase. Airport Operating Expenses totaled $36M YTD in FY2024 compared to $27.3M in FY2023, a 32% increase. Net income before federal relief funding totals $23.1M YTD in FY2024 compared to $22.8M in FY2023, a 1.2% increase. Table #2 Approved Budget - Seasonalized FY 2024 FY 2024 Budget vs. YTD Variance Budget vs. YTD Variance YTD $ Fav (Unfav) % Fav (Unfav) Operating Revenue Airport OPEX Total Requirements $71,673,903 $79,481,621 $7,807,718 $34,278,751 $36,007,709 ($1,728,958) $54,634,177 $56,375,414 ($1,741,237) Net Income Before Debt Service $32,385,509 $38,451,989 $6,066,481 Net Income Before Federal Relief $17,039,727 $23,106,207 $6,066,481 Federal Relief Reimbursement $0 $0 $0 Net Income After Federal Relief $17,039,727 $23,106,207 $6,066,481 10.9% (5.0%) (3.2%) 18.7% 35.6% 0.0% 35.6% Through December 2023, AUS delivered favorable YTD financial performance compared to FY2024 budget on a seasonalized basis due to increased operating revenues. As presented in Table #2, FY2024 revenues exceed budgeted revenues by 10.9% or $7.8M. Airport operating expenses are 5.0% or $1.7M above seasonalized budgeted expenses due to higher personnel costs from faster than anticipated filling of vacant positions, increased overtime worked during the holiday season, and increased parking operations cost. Before federal relief, AUS reports net income of $23.1M, which exceeds the seasonalized budget estimate by 35.6% or $6.1M. Attachments: December 2023 - AAC Financial Report