20250212-002 Financial Memo — original pdf

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MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: February 12, 2025 SUBJECT: Austin-Bergstrom International Airport (AUS) Update December 2024 Financial Results Passenger traffic totaled 1,826,157 in December 2024, an increase of 1.3% compared to December 2023. Average daily departures decreased from 261 in December 2023 to 237 in December 2024, a decrease of 24 daily departures or 9.1% resulting from capacity reductions to better match demand by air carriers. Table #1 FY 2025 FY 2024 Variance December December Fav (Unfav) FY 2025 YTD FY 2024 YTD Variance YTD Fav (Unfav) Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements Net Income 926,479 920,528 0.6% 2,768,019 2,892,119 1,089,210,074 1,169,216,644 (6.8%) 3,316,264,851 3,598,240,392 12,336 13,539 (8.9%) 37,577 37,608 (4.3%) (7.8%) (0.1%) $28,687,714 $24,869,685 $3,818,028 $87,996,470 $79,481,621 $8,514,848 $13,214,770 $11,778,365 ($1,436,405) $39,380,857 $36,007,709 ($3,373,148) $21,707,597 $18,564,748 ($3,142,849) $63,005,313 $56,375,414 ($6,629,899) $6,980,116 $6,304,938 $675,179 $24,991,157 $23,106,207 $1,884,949 Table #1 illustrates December 2024’s enplanements totaled 926,479, an increase of 0.6% compared to December 2023. Landing weights totaled 1.1 billion pounds in December 2024 representing a decrease of 6.8% compared to December 2023. Cargo volume totaled 12,336 tons in December 2024, a decrease of 8.9% compared to December 2023. December 2024 operating revenue totaled $28.7M, an increase of 15.4% or $3.8M compared to December 2023. The increase in operating revenue primarily results from updated airline rates and charges in FY2025. December 2024 operating revenue is composed of 51.6% airline revenue, 47.4% non-airline revenue, and 1.0% interest income. Airport operating expenses totaled $13.2M for the month, an increase of 12.2% or $1.4M compared to December 2023. The increase in expenses is due to improved staffing, higher costs for APD and ARFF units, and increased contractual costs related to information systems and maintenance. AUS reported a $7.0M surplus in December 2024, an increase of $0.7M or 10.7% compared to December 2023. Fiscal Year 2025 Financial Results FY2025 Year to Date (YTD) Operating Revenue totals $88.0M compared to $79.5M in FY2024, a 10.7% increase. Airport Operating Expenses totaled $39.4M YTD in FY2025 compared to $36.0M in FY2024, a 9.4% increase. Net income totals $25.0M YTD in FY2025 compared to $23.1M in FY2024, an 8.2% increase. 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 $88,010,270 $87,996,470 ($13,800) $39,987,391 $39,380,857 $606,534 $65,391,076 $63,005,313 $2,385,763 $22,619,194 $24,991,157 $2,371,963 (0.0%) 1.5% 3.6% 10.5% AUS delivered favorable financial performance compared to FY2025 budget on a seasonalized basis due to expense savings. As presented in Table #2, FY2025 revenues are approximately aligned with seasonalized budget. Airport operating expenses are 1.5% or $0.6M below seasonalized budget. AUS reports net income of $25M, which exceeds the seasonalized budget estimate by 10.5% or $2.4M. Attachments: December 2024 - AAC Financial Report