06122024-002 Financial Memo — original pdf

Backup

MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: June 12, 2024 April 2024 Financial Results SUBJECT: Austin-Bergstrom International Airport (AUS) Update Passenger traffic totaled 1,875,980 in April 2024, an increase of 1.7% compared to April 2023. The increase is driven in part by the high volume of travelers visiting to observe the solar eclipse. Average daily departures decreased from 262 in April 2023 to 257 in April 2024, a decrease of 5 daily departures or 1.7% resulting primarily from changes in service offered by air carriers. Table #1 Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements FY 2024 April FY 2023 April Variance Fav (Unfav) FY 2024 YTD FY 2023 YTD Variance YTD Fav (Unfav) 949,386 934,029 1.6% 6,245,716 6,165,972 1,137,450,764 1,127,819,520 0.9% 7,798,593,786 7,746,236,179 13,218 11,346 16.5% 87,047 87,436 1.3% 0.7% (0.4%) $26,896,310 $22,722,028 $4,174,281 $180,327,084 $155,023,167 $25,303,917 $11,809,655 $9,681,893 ($2,127,763) $86,735,560 $67,550,234 ($19,185,326) $18,596,037 $15,591,270 ($3,004,767) $134,393,936 $108,924,117 ($25,469,819) Net Income Before Federal Relief $8,300,272 $7,130,758 $1,169,514 $45,933,148 $46,099,050 ($165,902) Federal Relief Reimbursement $0 $2,792,492 ($2,792,492) $0 $32,645,734 ($32,645,734) Net Income After Federal Relief $8,300,272 $9,923,251 ($1,622,978) $45,933,148 $78,744,784 ($32,811,636) Table #1 illustrates April 2024’s enplanements totaled 949,386, an increase of 1.6% compared to April 2023. Landing weights totaled 1.1 billion pounds in April 2024 representing an increase of 0.9% compared to April 2023. Cargo volume totaled 13,218 tons in April 2024, an increase of 16.5% compared to April 2023. April 2024 operating revenue totals $26.9M, an increase of 18.4% or $4.2M compared to April 2023. The increase in operating revenue primarily results from updated airline rates for FY24, changes to the parking rate structure from prior year, and the impact of passenger traffic related to the solar eclipse. April 2024 operating revenue is composed of 45.5% airline revenue, 52.5% non-airline revenue, and 2.0% interest income. Airport operating expenses totaled $11.8M for the month, an increase of 22.0% or $2.1M compared to April 2023. The increase in operating expenses results from higher personnel costs from increased headcount and wage adjustments, costs associated with APD and ARFF units, and contractual costs including parking services and baggage handling system maintenance. AUS reported an $8.3M surplus in April 2024, an increase of $1.2M or 16.4% compared to April 2023. Fiscal Year 2024 Financial Results FY2024 Year to Date (YTD) Operating Revenue totals $180.3M compared to $155.0M in FY2023, a 16.3% increase. Airport Operating Expenses totaled $86.7M YTD in FY2024 compared to $67.6M in FY2023, a 28.4% increase. Net income before federal relief funding totals $45.9M YTD in FY2024 compared to $46.1M in FY2023, a 0.4% decrease. Table #2 Approved Budget - Seasonalized CYE - Seasonalized FY 2024 FY 2024 FY 2024 Budget vs. YTD Variance Budget vs. YTD Variance CYE vs. YTD Variance CYE vs. YTD Variance YTD $ Fav (Unfav) % Fav (Unfav) $ Fav (Unfav) $ Fav (Unfav) Operating Revenue Airport OPEX $162,778,511 $178,727,529 $180,327,084 $17,548,572 $82,414,069 $86,878,154 $86,735,560 ($4,321,491) Total Requirements $130,043,793 $135,245,683 $134,393,936 ($4,350,143) Net Income $32,734,719 $43,481,847 $45,933,148 $13,198,429 10.8% (5.2%) (3.3%) 40.3% $1,599,554 $142,594 $851,747 $2,451,301 0.9% 0.2% 0.6% 5.6% Through April 2024, AUS delivered favorable YTD financial performance compared to FY2024 budget and current year estimate (CYE) on a seasonalized basis due to increased operating revenues. As presented in Table #2, FY2024 revenues exceed budgeted revenues by 10.8% or $17.5M and exceed CYE by 0.9% or $1.6M. Airport operating expenses are 5.2% or $4.3M above seasonalized budgeted expenses due to higher personnel costs from faster than anticipated filling of vacant positions, wage adjustments for APD and ARFF personnel, and increased parking operations cost. Before federal relief, AUS reports net income of $45.9M, which exceeds the seasonalized budget estimate by 40.3% or $13.2M and exceeds CYE by 5.6% or $2.5M. Attachments: April 2024 - AAC Financial Report