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AUS reports mixed July results; airline capacity rising as Southwest eyes growth in Texas
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Summary
Airport CFO reported flat passenger numbers, cargo down 12% and operating revenue up 10% year over year in July; airline staff said seat capacity is increasing and Southwest indicated long-term plans to expand in Austin.
Rajeev Thomas, chief financial officer for the aviation department, told commissioners that total enplanements and passenger counts for July were roughly flat year over year while landed weights were about 2.5% higher. Cargo volumes underperformed and were down about 12% compared with July 2024, a decline Thomas and staff attributed in part to reduced FedEx volumes and broader shifts from expedited air shipments to lower-cost ground transport.
On the revenue side, Thomas said operating revenues rose roughly 10% (about $2.9 million) over the prior year, with airline-related revenue up about 17% for the month and nearly 19% year to date. Operating expenses for July increased about 8%, below a recent average of 10% growth, in part because several one-time charges that hit last year did not recur. Debt-service costs appeared higher versus the prior year — $6.8 million in July compared with $4.4 million the prior July — largely because of timing differences from prior-year bond reserves and interest adjustments.
Thomas said net revenues for the month were down roughly $1 million (about 10%) versus last year, but year-to-date net revenues were about $6.6 million (9%) higher than the prior year. Against the adopted budget, year-to-date net revenues were about $11 million favorable largely because of a debt-service reserve release; operating expenses were about $1.2 million favorable and revenues were roughly $425,000 below budget for the full year pacing.
Jamie Casanoff, airport aviation business staff, gave an airline network and capacity update. She said seat capacity was roughly 2.5% higher for the July–September quarter compared with the prior year and forecast 10% more seats loaded for the October–December quarter. She noted recent airline announcements and route changes: Southwest’s CEO signaled a possible long-term growth in Austin (it could become the carrier’s largest Texas airport over time), Southwest will add a Jacksonville route Oct. 2, and Southwest’s current departures from Austin on the carrier are about 131 compared with Houston (187) and Dallas Love Field (210).
Other announced service changes: Delta plans Columbus and Kansas City routes next summer and has added Kentucky Derby flights; Delta will start service to Cancun and Cabo on Dec. 20 and Palm Springs on Nov. 8 and Denver Nov. 9; JetBlue will restart Fort Lauderdale service Nov. 20; Viva Aerobus will begin nonstop service to Mexico City’s Felipe Ángeles (NLU) on Nov. 20; Spirit Airlines remains in Chapter 11 and its network outcome is uncertain.
Why this matters: airport revenues and route announcements affect airline competition, passenger choice and airport planning. Thomas and Casanoff said trends were encouraging for seat growth even as cargo demand and some monthly net metrics were mixed.
Ending: Staff fielded no substantive follow-up motions; commissioners thanked staff for the report and moved on to other agenda items.
