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Airport reports May revenue gains despite declines in enplanements and cargo

5345946 · July 9, 2025

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Summary

At a July meeting, Rajeev Thomas, the airport chief financial officer, told commissioners that May operating revenue rose about 10% year over year even as enplanements and cargo tonnage declined; the month included releases from a debt service reserve that boosted reported savings.

Rajeev Thomas, chief financial officer, told the Airport Commission the airport’s May 2025 operating results showed mixed signals: a 5.8% decline in enplanements for the month and year-to-date enplanements down about 4.9%, while operating revenues for May rose roughly 10% compared with the prior year.

The revenue gains were driven largely by airline revenues and increases tied to rate adjustments implemented in fiscal year 2025, Thomas said. Parking revenue and transactions were down about 5%, and rental-car transactions year to date were down about 2.5%. Advertising revenue was up 31% and other concessions and rental fees rose about 8%.

On expenses, Thomas said operating expenses for the month were about 12% higher than last year and up about 10% year to date, but expenditures remained close to budget. "Versus budget, overall revenues are down about 1.7%… and operating expenses are just 1% favorable to where we budgeted," Thomas said.

Thomas also described accounting activity in the debt service reserve fund: recalculation produced excess releases of roughly $9.5 million across the prior and current months. He said the ledger currently shows that as savings in the debt service fund, but bond covenants and accounting practice require moving those amounts into the revenue fund and then ultimately into the capital fund; staff will meet with bond counsel to finalize accounting and the reported position may change in next month’s financials.

Commissioners asked clarifying questions about the ledgers and line items; Thomas confirmed the excess appears in the debt service requirements category on the statement and reiterated that most of the reported $7 million year‑to‑date improvement derives from the reserve release. No formal action was tied to the presentation.