20250312-002 Financial Memo — original pdf

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MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: March 12, 2025 SUBJECT: Austin-Bergstrom International Airport (AUS) Update January 2025 Financial Results Passenger traffic totaled 1,396,839 in January 2025, a decrease of 5.8% compared to January 2024. Average daily departures decreased from 224 in January 2024 to 204 in January 2025, a decrease of 20 daily departures or 8.8% resulting from capacity reductions to better match demand by air carriers. Table #1 FY 2025 January FY 2024 January Variance 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 682,885 725,594 (5.9%) 3,450,904 3,617,713 937,572,380 1,005,631,458 (6.8%) 4,253,837,231 4,603,871,850 10,173 11,579 (12.1%) 47,750 49,187 (4.6%) (7.6%) (2.9%) $25,788,907 $23,599,287 $2,189,621 $113,785,377 $103,080,908 $10,704,469 $16,412,105 $25,451,585 $11,939,946 $18,726,328 ($4,472,159) $55,792,962 $47,947,655 ($7,845,308) ($6,725,256) $88,456,898 $75,101,742 ($13,355,155) $337,323 $4,872,958 ($4,535,636) $25,328,479 $27,979,166 ($2,650,686) Table #1 illustrates January 2025’s enplanements totaled 682,885, a decrease of 5.9% compared to January 2024. Landing weights totaled 938 million pounds in January 2025 representing a decrease of 6.8% compared to January 2024. Cargo volume totaled 10,173 tons in January 2025, a decrease of 12.1% compared to January 2024. January 2025 operating revenue totaled $25.8M, an increase of 9.3% or $2.2M compared to January 2024. The increase in operating revenue primarily results from updated airline rates and charges in FY2025. January 2025 operating revenue is composed of 51.8% airline revenue, 46.9% non-airline revenue, and 1.3% interest income. Airport operating expenses totaled $16.4M for the month, an increase of 37.5% or $4.4M compared to January 2025. January 2025 included three pay periods compared to two pay periods in January 2024, which drives additional personnel expense in the month. Additionally, operating expenses increased due to improved staffing, higher costs for APD and ARFF units, and increased contractual costs related to information systems and maintenance. As a result of the elevated monthly operating expenses, AUS reported a $0.3M surplus in January 2025, a decrease of $4.5M compared to January 2024. Fiscal Year 2025 Financial Results FY2025 Year to Date (YTD) Operating Revenue totals $113.8M compared to $103.1M in FY2024, a 10.4% increase. Airport Operating Expenses totaled $55.8M YTD in FY2025 compared to $47.9M in FY2024, a 16.4% increase. Net income totals $25.3M YTD in FY2025 compared to $28.0M in FY2024, a 9.5% decrease. 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 $114,438,041 $113,785,377 $56,608,275 $90,974,626 $23,463,415 $55,792,962 $88,456,898 $25,328,479 ($652,664) $815,313 $2,517,728 $1,865,064 (0.6%) 1.4% 2.8% 7.9% 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 0.6% or $0.7M below seasonalized budget. Airport operating expenses are 1.4% or $0.8M below seasonalized budget. AUS reports net income of $25.3M, which exceeds the seasonalized budget estimate by 7.9% or $1.9M. Attachments: January 2025 - AAC Financial Report