Airport Commission approves 5% increase to fiscal 2026 airline rates and charges

The Santa Barbara Airport Commission voted unanimously on May 21 to approve a 5% increase in airline rates and charges for fiscal 2026.

Jonathan Abad, the airport business manager, presented the proposal and explained the commission took a negotiated approach this year rather than applying a pure cost-recovery formula. “We settled on a 5% increase, which still helps to cover our costs with an increase, but is more palatable to the airline,” Abad said.

Abad told commissioners the airport received roughly $19 million in federal COVID relief funding since 2020 and those funds have been used to stabilize airline rates through fiscal 2026. He said terminal and other operating rates remain competitive despite Santa Barbara’s higher operating costs and that passenger traffic has rebounded to record levels — an annualized total above 1.3 million passengers at the time of the presentation.

Abad summarized drivers of the increase as higher maintenance and operations costs, rising utility bills, staffing needs and capital projects including long‑term parking and terminal improvements. He said the proposed 5% figure is lower than what a strict cost-recovery calculation would have produced but balances near-term affordability for carriers with airport funding needs.

Commissioners asked about capacity and whether the terminal could accommodate more flights without expansion. Abad said there is additional schedule capacity at off-peak times but that growth strains the customer experience when gates are fully used. Commissioners also discussed a previous decision to waive certain landing fees for new service and noted those waivers are ending, which contributes to higher airline revenues in the budget.

The motion to approve the fiscal 2026 airline rates and charges was made and seconded during the meeting and passed unanimously. No commissioner votes were recorded against or abstaining.