20240911-002 Financial Memo — original pdf

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MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: September 11, 2024 SUBJECT: Austin-Bergstrom International Airport (AUS) Update July 2024 Financial Results Passenger traffic totaled 2,039,531 in July 2024, a decrease of 0.1% compared to July 2023. Average daily departures decreased from 273 in July 2023 to 264 in July 2024, a decrease of 9 daily departures or 3.4% resulting primarily from domestic capacity reductions to better match demand by air carriers. Table #1 Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements FY 2024 July FY 2023 July Variance Fav (Unfav) FY 2024 YTD FY 2023 YTD Variance YTD Fav (Unfav) 1,014,354 1,010,768 0.4% 9,339,027 9,211,343 1,194,530,732 1,216,773,511 (1.8%) 11,360,732,335 11,349,334,923 12,957 9,927 30.5% 125,898 120,239 1.4% 0.1% 4.7% $29,082,408 $25,449,068 $3,633,340 $266,075,251 $229,376,435 $36,698,816 $12,836,364 $10,980,565 ($1,855,800) $123,471,721 $99,445,482 ($24,026,239) $18,917,999 $17,441,843 ($1,476,156) $192,543,471 $159,927,107 ($32,616,364) Net Income Before Federal Relief $10,164,409 $8,007,225 $2,157,184 $73,531,779 $69,449,328 $4,082,451 Federal Relief Reimbursement $0 $1,947,342 ($1,947,342) $0 $39,173,376 ($39,173,376) Net Income After Federal Relief $10,164,409 $9,954,567 $209,842 $73,531,779 $108,622,704 ($35,090,925) Table #1 illustrates July 2024’s enplanements totaled 1,014,354, an increase of 0.4% compared to June 2023. Landing weights totaled 1.19 billion pounds in July 2024 representing a decrease of 1.8% compared to July 2023. Cargo volume totaled 12,957 tons in July 2024, an increase of 30.5% compared to July 2023. July 2024 operating revenue totals $29.1M, an increase of 14.3% or $3.6M compared to July 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. July 2024 operating revenue is composed of 46.2% airline revenue, 51.8% non-airline revenue, and 2.0% interest income. Airport operating expenses totaled $12.8M for the month, an increase of 16.9% or $1.9M compared to July 2023. The increase in operating expenses results from higher personnel costs from increased headcount and wage adjustments, costs associated with APD and ARFF units, parking management costs, information systems consulting and maintenance costs, and elevated commodity purchases. Debt service funded by operating revenue decreased 13.9% or $0.7M in July 2024 compared to the prior year because of the application of interest earned on the 2013 bank loan, 2014 bond issuance, and 2017 bond issuance. AUS reported a $10.2M surplus in July 2024, an increase of $2.2M or 26.9% compared to July 2023. Fiscal Year 2024 Financial Results FY2024 Year to Date (YTD) Operating Revenue totals $266.1M compared to $229.4M in FY2023, a 16.0% increase. Airport Operating Expenses totaled $123.5M YTD in FY2024 compared to $99.4M in FY2023, a 24.2% increase. Net income before federal relief funding totals $73.5M YTD in FY2024 compared to $69.4M in FY2023, a 5.9% 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 $238,722,870 $261,805,114 $266,075,251 $27,352,381 $116,780,211 $123,173,723 $123,471,721 ($6,691,510) Total Requirements $187,688,430 $195,135,949 $192,543,471 ($4,855,042) Net Income $51,034,440 $66,669,165 $73,531,779 $22,497,339 11.5% (5.7%) (2.6%) 44.1% $4,270,136 ($297,998) $2,592,478 $6,862,614 1.6% (0.2%) 1.3% 10.3% Through June 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 11.5% or $27.4M and exceed CYE by 1.6% or $4.3M. Airport operating expenses are 5.7% or $6.7M above seasonalized budgeted expenses due to higher personnel costs from faster than anticipated filling of vacant positions, wage adjustments for APD and ARFF personnel, increased parking operations cost, and increased commodity costs. YTD airport operating expenses exceed CYE by $0.3M or 0.2% primarily because of elevated commodity purchases in the month of July. Before federal relief, AUS reports net income of $73.5M, which exceeds the seasonalized budget estimate by 44.1% or $22.5M and exceeds CYE by 10.3% or $6.9M. Attachments: July 2024 - AAC Financial Report