20251008-002 Financial Memo — original pdf

Backup

MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Chief Financial Officer, Austin Aviation DATE: October 8, 2025 SUBJECT: Austin-Bergstrom International Airport Financial Update August 2025 Financial Results Passenger traffic totaled 1,772,810 in August 2025, an increase of 3% compared to August 2024. Average daily departures increased from 242 in August 2024 to 249 in August 2025, an increase of 3%. Table #1 Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements Net Income FY 2025 August FY 2024 August Variance Fav (Unfav) FY 2025 YTD FY 2024 YTD Variance YTD Fav (Unfav) 869,383 842,310 3.2% 9,849,967 10,181,337 1,131,765,544 1,111,982,563 1.8% 12,142,590,190 12,472,714,898 11,935 13,175 (9.4%) 128,052 139,072 (3.3%) (2.6%) (7.9%) $29,592,618 $26,797,926 $2,794,693 $322,633,584 $292,873,176 $29,760,408 $18,164,388 $15,032,498 ($3,131,890) $154,322,680 $138,504,219 ($15,818,461) $27,203,868 $21,375,867 ($5,828,001) $249,630,516 $213,919,338 ($35,711,178) $11,934,751 $5,422,059 $6,512,692 $82,549,068 $78,953,838 $3,595,230 Table #1 illustrates August 2025’s enplanements totaled 869,383, an increase of 3% compared to August 2024. Landing weights totaled 1.1 billion pounds in August 2025 representing an increase of 2% compared to August 2024. Cargo volume totaled 11,935 tons in August 2025, a decrease of 9% compared to August 2024. Cargo volume decreased primarily due to changes in FedEx cargo activity. Operating revenue totaled $29.6M, an increase of 10% or $2.8M compared to August 2024. The increase in operating revenue results from updated airline rates and charges in FY2025 and growth in parking revenues. Operating revenue in August 2025 is composed of 49% airline revenue, 49% non-airline revenue, and 2% interest income. Airport operating expenses totaled $18.2M for the month, an increase of 21% or $3.1M compared to August 2024. The increase in operating expenses is primarily driven by growth in airport staffing and increased contractual costs for information systems, building maintenance, and public safety (APD and ARFF). Austin Aviation reported an $11.9M surplus in August 2025, an increase of $6.5M compared to August 2024. The increase in the surplus compared to August 2024 results from a transfer to the operating fund for excess balances within the debt service reserve fund. This was previously reflected as a reduction to debt service requirements. Fiscal Year 2025 Financial Results FY2025 Year to Date (YTD) Operating Revenue totals $322.6M compared to $292.9M in FY2024, a 10% increase. Airport Operating Expenses totaled $154.3M YTD in FY2025 compared to $138.5M in FY2024, an 11% increase. Net income totals $82.5M YTD in FY2025 compared to $79.0M in FY2024, a 5% 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) Operating Revenue Airport OPEX Total Requirements Net Income $322,719,947 $315,969,274 $322,633,584 ($86,363) (0.0%) $6,664,310 $155,344,920 $154,049,311 $154,322,680 $1,022,240 $251,201,038 $251,155,429 $249,630,516 $1,570,523 0.7% 0.6% ($273,369) $1,524,914 $71,518,909 $64,813,845 $82,549,068 $11,030,160 15.4% $17,735,223 2.1% (0.2%) 0.6% 27.4% Austin Aviation delivered favorable financial performance compared to FY2025 budget and current year estimate on a seasonalized basis. As presented in Table #2, FY2025 revenues are less than $0.1M below seasonalized budget because of impacts to non-airline revenue streams from the decline in YTD passenger traffic compared to budget. Operating revenue exceeds current year estimate by 2% or $6.7M. Airport operating expenses are 1% or $1.0M below seasonalized budget and less than 1% or $0.3M above current year estimate. Austin Aviation reports net income of $82.5M, which exceeds the seasonalized budget estimate by 15% or $11.0M and exceeds current year estimate by 27% or $17.7M. Attachments: August 2025 - AAC Financial Report