20241211-002 Financial Memo — original pdf

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MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: December 11, 2024 SUBJECT: Austin-Bergstrom International Airport (AUS) Update October 2024 Financial Results Passenger traffic totaled 1,915,146 in October 2024, a decrease of 6.1% compared to October 2023. Average daily departures decreased from 282 in October 2023 to 249 in October 2024, a decrease of 33 daily departures or 11.6% resulting from capacity reductions to better match demand by air carriers. Table #1 Enplanements Landing Weights Cargo Tonnage FY 2025 October FY 2024 October Variance Fav (Unfav) 948,951 1,013,699 1,157,421,277 1,257,517,250 13,609 11,863 (6.4%) (8.0%) 14.7% Operating Revenue $31,227,493 $28,578,806 $2,648,687 Airport OPEX $12,216,251 $10,847,965 ($1,368,286) Total Requirements $19,639,572 $17,640,053 ($1,999,519) Net Income $11,587,920 $10,938,753 $649,167 Table #1 illustrates October 2024’s enplanements totaled 948,951, a decrease of 6.4% compared to October 2023. Landing weights totaled 1.2 billion pounds in October 2024 representing a decrease of 8.0% compared to October 2023. Cargo volume totaled 13,609 tons in October 2024, an increase of 14.7% compared to October 2023. October 2024 operating revenue totaled $31.2M, an increase of 9.3% or $2.6M compared to October 2023. The increase in operating revenue primarily results from updated airline rates and charges in FY2025. October 2024 operating revenue is composed of 47% airline revenue, 51% non-airline revenue, and 2% interest income. Airport operating expenses totaled $12.2M for the month, an increase of 12.6% or $1.4M compared to October 2023. The increase in expenses is due to improved staffing and increased contractual costs. AUS reported an $11.6M surplus in October 2024, an increase of $0.6M or 5.9% compared to October 2023. Fiscal Year 2025 Financial Results Table #2 Approved Budget - Seasonalized FY 2025 FY 2025 Budget vs. YTD Variance Budget vs. YTD Variance YTD $ Fav (Unfav) % Fav (Unfav) Operating Revenue Airport OPEX Total Requirements Net Income $30,935,721 $31,227,493 $12,510,974 $12,216,251 $291,772 $294,723 $20,692,247 $19,639,572 $1,052,675 $10,243,474 $11,587,920 $1,344,446 0.9% 2.4% 5.1% 13.1% AUS delivered favorable financial performance compared to FY2025 budget on a seasonalized basis due to increased operating revenues and expense savings. As presented in Table #2, FY2025 revenues exceed budgeted revenues by 0.9% or $0.3M. Airport operating expenses are 2.4% or $0.3M below seasonalized budget. AUS reports net income of $11.6M, which exceeds the seasonalized budget estimate by 13.1% or $1.3M. Attachments: October 2024 - AAC Financial Report