20241009-002 Financial Memo — original pdf

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MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department SUBJECT: Austin-Bergstrom International Airport (AUS) Update DATE: October 9, 2024 August 2024 Financial Results Passenger traffic totaled 1,725,545 in August 2024, a decrease of 2.9% compared to August 2023. Average daily departures decreased from 286 in August 2023 to 254 in August 2024, a decrease of 32 daily departures or 12.7% 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 August FY 2023 August Variance Fav (Unfav) FY 2024 YTD FY 2023 YTD Variance YTD Fav (Unfav) 842,310 869,746 (3.2%) 10,181,337 10,081,089 1,111,982,563 1,213,351,964 (8.4%) 12,472,714,898 12,562,686,887 13,175 11,629 13.3% 139,072 131,869 1.0% -0.7% 5.5% $26,797,926 $24,112,134 $2,685,791 $292,873,176 $253,488,569 $39,384,607 $15,032,498 $10,878,363 ($4,154,135) $138,504,219 $110,323,845 ($28,180,374) $21,375,867 $17,215,562 ($4,160,304) $213,919,338 $177,142,669 ($36,776,669) Net Income Before Federal Relief $5,422,059 $6,896,572 ($1,474,513) $78,953,838 $76,345,900 $2,607,938 Federal Relief Reimbursement $0 $438,572 ($438,572) $0 $39,611,948 ($39,611,948) Net Income After Federal Relief $5,422,059 $7,335,144 ($1,913,085) $78,953,838 $115,957,849 ($37,004,010) Table #1 illustrates August 2024’s enplanements totaled 842,310, a decrease of 3.2% compared to August 2023. Landing weights totaled 1.1 billion pounds in August 2024 representing a decrease of 8.4% compared to August 2023. Cargo volume totaled 13,175 tons in August 2024, an increase of 13.3% compared to August 2023. August 2024 operating revenue totals $26.8M, an increase of 11.1% or $2.7M compared to August 2023. The increase in operating revenue primarily results from updated airline rates for FY24. August 2024 operating revenue is composed of 47.4% airline revenue, 50.2% non-airline revenue, and 2.4% interest income. Airport operating expenses totaled $15M for the month, an increase of 38.2% or $4.2M compared to August 2023. The month of August 2024 included three pay periods compared to two pay periods in August 2023, which drives additional personnel expense in the month. The increase in operating expenses results primarily from higher personnel costs from increased headcount and wage adjustments, costs associated with APD and ARFF units, and parking management costs. Debt service funded by operating revenue decreased 9.4% or $0.5M in August 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 $5.4M surplus in August 2024, a decrease of $1.9M or 26.1% compared to August 2023. Fiscal Year 2024 Financial Results FY2024 Year to Date (YTD) Operating Revenue totals $292.9M compared to $253.5M in FY2023, a 15.5% increase. Airport Operating Expenses totaled $138.5M YTD in FY2024 compared to $110.3M in FY2023, a 25.5% increase. Net income before federal relief funding totals $79M YTD in FY2024 compared to $76.3M in FY2023, a 3.4% increase. Table #2 Amended 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 $272,911,092 $289,116,140 $292,873,176 $19,962,084 $140,092,772 $139,210,435 $138,504,219 $1,588,553 Total Requirements $220,459,988 $219,378,146 $213,919,338 $6,540,651 7.3% 1.1% 3.0% $3,757,037 $706,216 $5,458,808 Net Income $52,451,104 $69,737,994 $78,953,838 $26,502,735 50.5% $9,215,845 1.3% 0.5% 2.5% 13.2% Through August 2024, AUS delivered favorable YTD financial performance compared to FY2024 amended budget and current year estimate (CYE) on a seasonalized basis due to increased operating revenues and expense savings. As presented in Table #2, FY2024 revenues exceed budgeted revenues by 7.3% or $20.0M and exceed CYE by 1.3% or $3.8M. Airport operating expenses are 1.1% or $1.6M below seasonalized budget and 0.5% or $0.7M below seasonalized CYE. AUS reports net income of $79M, which exceeds the seasonalized budget estimate by 50.5% or $26.5M and exceeds CYE by 13.2% or $9.2M. Attachments: August 2024 - AAC Financial Report