20250709-002 May 2025 AAC Financial Memo — original pdf

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TO: Airport Advisory Commissioners MEMORANDUM FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: July 9, 2025 SUBJECT: Austin-Bergstrom International Airport (AUS) Update May 2025 Financial Results Passenger traffic totaled 1,935,429 in May 2025, a decrease of 6.4% compared to May 2024. Average daily departures decreased from 267 in May 2024 to 260 in May 2025, a decrease of 7 daily departures or 2.8%. Table #1 Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements Net Income FY 2025 May FY 2024 May Variance Fav (Unfav) FY 2025 YTD FY 2024 YTD Variance YTD Fav (Unfav) 995,165 1,056,171 (5.8%) 6,941,868 7,301,887 1,175,961,526 1,210,805,893 (2.9%) 8,580,480,721 9,009,399,679 11,677 13,217 (11.7%) 93,891 100,264 (4.9%) (4.8%) (6.4%) $31,028,978 $28,166,172 $2,862,806 $228,839,985 $208,493,255 $20,346,730 $13,166,417 $11,769,616 ($1,396,801) $108,330,553 $98,505,176 ($9,825,377) $19,309,947 $19,142,322 ($167,626) $166,773,864 $153,536,257 ($13,237,606) $11,719,031 $9,023,850 $2,695,181 $62,066,121 $54,956,998 $7,109,123 Table #1 illustrates May 2025’s enplanements totaled 995,165, a decrease of 5.8% compared to May 2024. Landing weights totaled 1.2 billion pounds in May 2025 representing a decrease of 2.9% compared to May 2024. Cargo volume totaled 11,677 tons in May 2025, a decrease of 11.7% compared to May 2024. May 2025 operating revenue totaled $31.0M, an increase of 10.2% or $2.9M compared to May 2024. The increase in operating revenue primarily results from updated airline rates and charges in FY2025. Operating revenue in May 2025 is composed of 49.4% airline revenue, 49.1% non-airline revenue, and 1.5% interest income. Airport operating expenses totaled $13.2M for the month, an increase of 11.9% or $1.4M compared to May 2024. The increase in operating expense is primarily driven by growth in airport staffing, increased public safety (APD and ARFF) costs, and elevated contractual costs for information systems and building maintenance. Debt service for the month of May 2025 is partially offset as a result of excess funding in debt service reserve funds. Savings of $2.7M resulting from the offset of debt service in the month will be applied to eligible capital projects. AUS reported a $11.7M surplus in May 2025, an increase of $2.7M compared to May 2024, due to increased operating revenues and the release from the debt service reserve fund. Fiscal Year 2025 Financial Results FY2025 Year to Date (YTD) Operating Revenue totals $228.8M compared to $208.5M in FY2024, a 9.8% increase. Airport Operating Expenses totaled $108.3M YTD in FY2025 compared to $98.5M in FY2024, a 10.0% increase. Net income totals $62.1M YTD in FY2025 compared to $55.0M in FY2024, a 12.9% 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) 1.4% (0.1%) 6.1% 29.0% Operating Revenue Airport OPEX $230,575,634 $225,718,890 $228,839,985 ($1,735,649) (0.8%) $3,121,095 $109,303,086 $108,210,646 $108,330,553 $972,533 Total Requirements $178,687,504 $177,595,064 $166,773,864 $11,913,641 0.9% 6.7% ($119,907) $10,821,200 Net Income $51,888,130 $48,123,826 $62,066,121 $10,177,992 19.6% $13,942,295 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 0.8% or $1.7M below seasonalized budget because of decline in passenger traffic compared to budget. Operating revenue exceeds current year estimate by 1.4% or $3.1M. Airport operating expenses are 0.9% or $1.0M below seasonalized budget and 0.1% or $0.1M above current year estimate. AUS reports net income of $62.1M, which exceeds the seasonalized budget estimate by 19.6% or $10.2M and exceeds current year estimate by 29.0% or $13.9M. Attachments: May 2025 - AAC Financial Report