20250611-002 Financial Memo — original pdf

Backup

TO: Airport Advisory Commissioners MEMORANDUM FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: June 11, 2025 SUBJECT: Austin-Bergstrom International Airport (AUS) Update April 2025 Financial Results Passenger traffic totaled 1,755,290 in April 2025, a decrease of 6.4% compared to April 2024. Average daily departures decreased from 257 in April 2024 to 255 in April 2025, a decrease of 2 daily departures or 0.7%. Table #1 Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements Net Income FY 2025 April FY 2024 April Variance Fav (Unfav) FY 2025 YTD FY 2024 YTD Variance YTD Fav (Unfav) 887,601 949,386 (6.5%) 5,946,703 6,245,716 1,125,014,725 1,137,450,764 (1.1%) 7,404,519,195 7,798,593,786 11,943 13,218 (9.6%) 82,215 87,047 (4.8%) (5.1%) (5.6%) $28,807,967 $26,896,310 $1,911,657 $197,811,007 $180,327,084 $17,483,923 $13,374,036 $11,809,655 ($1,564,381) $95,164,136 $86,735,560 ($8,428,576) $15,347,222 $18,596,037 $3,248,816 $147,463,917 $134,393,936 ($13,069,981) $13,460,746 $8,300,272 $5,160,473 $50,347,090 $45,933,148 $4,413,942 Table #1 illustrates April 2025’s enplanements totaled 887,601, a decrease of 6.5% compared to April 2024. Landing weights totaled 1.1 billion pounds in April 2025 representing a decrease of 1.1% compared to April 2024. Cargo volume totaled 11,943 tons in April 2025, a decrease of 9.6% compared to April 2024. Note that April 2024 cargo volume was elevated due to MotoGP related cargo. In 2025 the race was held at the end of March compared to mid-April in 2024. April 2025 operating revenue totaled $28.8M, an increase of 7.1% or $1.9M compared to April 2024. The increase in operating revenue primarily results from updated airline rates and charges in FY2025. Compared to April 2024, non-airline revenues decreased 3.6% mostly because of a decrease in rental car revenues. The solar eclipse in April 2024 drove exceptional demand for rental cars in the period; the same dynamic is not present in April 2025. Operating revenue in April 2025 is composed of 51.1% airline revenue, 47.3% non-airline revenue, and 1.6% interest income. Airport operating expenses totaled $13.4M for the month, an increase of 13.2% or $1.6M compared to April 2024. The increase in operating expense is primarily driven by growth in airport staffing, increased public safety (APD and ARFF) costs, and elevated information systems expenses. Debt service for the month of April 2025 is offset as a result of excess funding in debt service reserve funds. Savings of $6.8M resulting from the offset of debt service in the month will be applied to eligible capital projects. AUS reported a $13.5M surplus in April 2025, an increase of $5.2M compared to April 2024, attributed primarily to the release from the debt service reserve fund. Fiscal Year 2025 Financial Results FY2025 Year to Date (YTD) Operating Revenue totals $197.8M compared to $180.3M in FY2024, a 9.7% increase. Airport Operating Expenses totaled $95.2M YTD in FY2025 compared to $86.7M in FY2024, a 9.7% increase. Net income totals $50.3M YTD in FY2025 compared to $45.9M in FY2024, a 9.6% increase. FY 2025 FY 2025 FY 2025 Budget vs. YTD Variance Budget vs. YTD Variance CYE vs. YTD Variance CYE vs. YTD Variance Table #2 Approved Budget - Seasonalized CYE - Seasonalized YTD $ Fav (Unfav) % Fav (Unfav) $ Fav (Unfav) $ Fav (Unfav) 1.2% (0.0%) 5.3% 27.0% Operating Revenue Airport OPEX $199,774,754 $195,402,657 $197,811,007 ($1,963,747) (1.0%) $2,408,350 $96,136,974 $95,137,567 $95,164,136 $972,838 Total Requirements $156,766,876 $155,767,468 $147,463,917 $9,302,959 1.0% 5.9% ($26,569) $8,303,552 Net Income $43,007,878 $39,635,189 $50,347,090 $7,339,212 17.1% $10,711,901 AUS delivered favorable financial performance compared to FY2025 budget and current year estimate on a seasonalized basis. As presented in Table #2, FY2025 revenues are 1.0% or $2.0M below seasonalized budget because of decline in passenger traffic compared to forecast. Operating revenue exceeds current year estimate by 1.2% or $2.4M. Airport operating expenses are 1.0% or $1.0M below seasonalized budget and generally aligned with current year estimate. AUS reports net income of $50.3M, which exceeds the seasonalized budget estimate by 17.1% or $7.3M and exceeds current year estimate by 27.0% or $10.7M. Attachments: April 2025 - AAC Financial Report