Flagstaff Airport Commission approves modest parking rate increases, forwards to City Council after 3-2 vote

The Flagstaff City Airport Commission voted 3-2 on May 8 to forward proposed increases to airport parking rates to the City Council, including higher daily rates for the terminal and economy lots, new monthly permits and a lost-ticket fee.

The action came after staff presented nine years of enplanement and parking data and a regional fee comparison. Adam Yelli, airport programs manager, and the airport’s operations lead, Brian (last name not provided), laid out trends showing higher enplanements in early 2025 even as parking revenue trended differently: “parking revenue was down 16% in March and down 10% in April,” Brian said, while March enplanements were “24% increase year over year” and April up 12% from 2024.

The commission heard that the airport has two customer parking lots: the terminal lot (approximately 380 spaces) and the economy lot (about 413 spaces). Current adopted rates (set in 2021 and implemented in 2023 with the paid-parking rollout) are first hour free then $2 per hour, with a daily maximum of $8 in the terminal lot and $6 in the economy lot. Staff’s package proposed raising the terminal daily rate to $10 and the economy daily rate to $7, adding monthly permits (proposed terminal monthly $160) and a lost-ticket fee roughly equal to 1½ weeks of parking.

Commissioners received a regional comparison showing similar daily airport rates from $7 to $16 at peer airports and monthly permits ranging $125–$260. Staff noted that about 60% of passenger traffic originates outside Flagstaff and that, in 2024 (the first full year with paid parking), 66% of customers parked in the terminal lot and 34% in the economy lot.

During discussion Commissioner Andrew Schaus said he worried about pricing effects; "If the price is something, we're gonna get a certain amount of occupancy based on people who see this as a benefit for them within our community," he said, asking staff for occupancy history and elasticity data. Commissioner Robbie Hanovich moved to accept the proposed increases; Commissioner Steiner seconded. The vote proceeded with Chair Tom Waddell, Commissioner Robbie Hanovich and Commissioner Dave Snyder voting yes; Commissioners Andrew Schaus and Colby White voting no. The motion passed 3 to 2. The commission will forward its recommendation and the supporting data to City Council for the formal 60-day public notice and council review.

Staff emphasized the timeline constraints related to federal and local processes: the commission’s recommendation will be included in a council presentation and the city’s 60-day notice if council adopts the proposal; staff also noted council can reduce rates without a 60-day notice if adjustments are later needed. Brian said the airport would monitor utilization and can return to Council with adjustments if higher rates harm demand.

Background details presented to the commission included: the airport installed paid parking in mid-2023 and has roughly 30–40% typical utilization of current capacity (with holiday weekends exceeding 50%); parking revenue does not track perfectly with enplanements because a majority of passengers originate outside the region and may not use on-site parking; March 2025 operations were unusually high (Brian said March operations were “up 71%” versus last year) and fuel flow was up 38% in March. Staff also proposed monthly permits and a lost-ticket fee to reduce unauthorized long-term parking and recover administrative costs.

Next steps: the commission’s recommendation will be presented to City Council along with the slides and data the commission reviewed. Council will consider the fee changes through its normal ordinance/fee procedure, including public notice and at least one council hearing. If council adopts the increases, staff said implementation and signage would follow and the airport would track occupancy and revenue.