Airport revenues climb on parking, rental cars and concessions despite airline settlement; expenses up with early capital transfers

Gil Turner, the city’s director of Aviation, and his team told the Finance Committee that airport non‑airline revenue is “steadily going up” and is about $1.2 million (12.9 percent) higher year‑over‑year through June, driven by parking rate increases and higher concession sales. Turner introduced the briefing as “a briefing on the Second Floor” and said enplanements are increasing though “not as much as we’d like to see.”

Anna, the aviation finance manager, said airline revenue was down about $108,000 (2.4 percent) year‑over‑year, largely because of the department’s annual settlement with carriers that returns some operating surplus to airlines when operating expenses are low. “It’s not truly a bad thing,” she said, explaining the settlement reduces reported airline revenue but results from lower operating expense and a decision to issue checks rather than credits this year.

Non‑airline revenue drivers include parking (about a $536,000 increase, roughly 12.7 percent) and rental‑car concessions (about $678,000, or 41.5 percent), the latter in part because of settle‑ups with rental‑car companies after pandemic‑era contract ambiguities. Concession sales in the terminal rose about $92,000 (16.7 percent), the presenters said. The department also reported a property‑tax increase for one airport parcel of about $208,000 in the first half of the year and said it collected the tax.

On expenses, the aviation presentation showed total uses up roughly $1.3 million (8 percent) compared with 2024, including higher personnel costs as the department staffs a newly acquired garage and restores pre‑pandemic staffing levels. Capital project transfers were higher early in the year because the department funded investments at the start of the fiscal year; that timing was described as a one‑time pattern that affects year‑to‑date comparisons. The presenters said they are monitoring AES billing issues that temporarily reduced electric costs, and they are working with vendors on corrected bills.

The department reported steady growth in region employment and said legacy carriers are increasing capacity; United is expected to expand service and bring larger aircraft in the next quarter, which will raise landing fees and enplanements. Turner said the airport is exploring additional revenue enhancements, including capturing more general‑aviation revenue and other fee collection improvements.

No formal actions were taken; staff answered brief questions and said they will continue to monitor revenue and billing corrections.