20240710-002 Finance Memo — original pdf

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MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: July 10, 2024 May 2024 Financial Results SUBJECT: Austin-Bergstrom International Airport (AUS) Update Passenger traffic totaled 2,068,404 in May 2024, a new record and an increase of 4.4% compared to May 2023. Average daily departures decreased from 269 in May 2023 to 267 in May 2024, a decrease of 2 daily departures or 0.7% 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 May FY 2023 May Variance Fav (Unfav) FY 2024 YTD FY 2023 YTD Variance YTD Fav (Unfav) 1,056,171 1,013,953 4.2% 7,301,887 7,179,925 1,210,805,893 1,205,890,302 0.4% 9,009,399,679 8,952,126,481 13,217 11,992 10.2% 100,264 99,427 1.7% 0.6% 0.8% $28,166,172 $23,956,126 $4,210,046 $208,493,255 $178,979,293 $29,513,963 $11,769,616 $9,327,751 ($2,441,865) $98,505,176 $76,877,985 ($21,627,191) $19,142,322 $15,513,032 ($3,629,290) $153,536,257 $124,437,148 ($29,099,109) Net Income Before Federal Relief $9,023,850 $8,443,094 $580,756 $54,956,998 $54,542,144 $414,854 Federal Relief Reimbursement $0 $2,394,363 ($2,394,363) $0 $35,040,097 ($35,040,097) Net Income After Federal Relief $9,023,850 $10,837,458 ($1,813,608) $54,956,998 $89,582,241 ($34,625,244) Table #1 illustrates May 2024’s enplanements totaled 1,056,171, an increase of 4.2% compared to May 2023. Landing weights totaled 1.2 billion pounds in May 2024 representing an increase of 0.4% compared to May 2023. Cargo volume totaled 13,217 tons in May 2024, an increase of 10.2% compared to May 2023. May 2024 operating revenue totals $28.2M, an increase of 17.6% or $4.2M compared to May 2023. The increase in operating revenue primarily results from updated airline rates for FY24, changes to the parking rate structure from prior year, and increases in non-airline revenues from increased passenger traffic. May 2024 operating revenue is composed of 45.4% airline revenue, 52.7% non-airline revenue, and 1.9% interest income. Airport operating expenses totaled $11.8M for the month, an increase of 26.2% or $2.4M compared to May 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 a $9.0M surplus in May 2024, an increase of $0.6M or 6.9% compared to May 2023. Fiscal Year 2024 Financial Results FY2024 Year to Date (YTD) Operating Revenue totals $208.5M compared to $179.0M in FY2023, a 16.5% increase. Airport Operating Expenses totaled $98.5M YTD in FY2024 compared to $76.9M in FY2023, a 28.1% increase. Net income before federal relief funding totals $55.0M YTD in FY2024 compared to $54.5M in FY2023, a 0.8% increase. 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 $187,623,910 $205,884,692 $208,493,255 $20,869,346 $93,753,941 $98,808,112 $98,505,176 ($4,751,235) Total Requirements $148,752,277 $154,649,653 $153,536,257 ($4,783,980) Net Income $38,871,633 $51,235,039 $54,956,998 $16,085,365 11.1% (5.1%) (3.2%) 41.4% $2,608,563 $302,935 $1,113,396 $3,721,959 1.3% 0.3% 0.7% 7.3% Through May 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 11.1% or $20.9M and exceed CYE by 1.3% or $2.6M. Airport operating expenses are 5.1% or $4.8M 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. Compared to CYE, YTD airport operating expenses reflect a favorable variance of $0.3M or 0.3%. Before federal relief, AUS reports net income of $55.0M, which exceeds the seasonalized budget estimate by 41.4% or $16.1M and exceeds CYE by 7.3% or $3.7M. Attachments: May 2024 - AAC Financial Report