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Santa Barbara Airport midyear report: passenger growth, parking revenue fuel operating gains; PFAS and capital projects drive costs
Summary
Business Manager Jonathan Abad told the commission the airport recorded a 21.3% increase in July 2024 and 15.3% growth at midyear, with terminal and parking revenues up sharply. The airport reported higher operating expenses, PFAS testing costs and several capital projects in planning or design.
Business Manager Jonathan Abad presented the Santa Barbara Airport’s midyear financial review for July–December 2024 to the Airport Commission on March 13, reporting strong passenger growth and revenue gains alongside higher operating costs and capital program activity.
“Another record‑breaking growth, 21.3% increase in July 2024 from the prior July,” Abad said, and he reported midyear passenger volumes that were 15.3% higher than the prior fiscal midyear.
Abad said total revenues were up 8.3% at midyear. Terminal revenues rose 23% year over year, driven largely by parking, which Abad said was up roughly 31% after the airport replaced parking equipment and moved terminal employees out of the overflow lot. Abad described parking as “now the airport’s single largest operating revenue source” with plans to relocate the overflow lot closer to the terminal as part of longer‑range work.
Other midyear highlights Abad reported: • Ground transportation and related revenues (advertising, ATM, TSA) were up 36.6%, with ground transportation itself up about 45%. • Rental car revenue rose about 6.4% and concessions (restaurants and gift shops) were up about 15%. • Commercial aviation building leases rose 13.6% in part because Delta was added during the fiscal year; landing fees were only up about 5% because new routes received a one‑year abatement on landing fees.
On the expense side, Abad said salaries and benefits were up 13.85% and materials, supplies and services rose 19.4% at midyear, driven in part by extraordinary repairs. Special projects rose significantly, Abad said, primarily because of PFAS testing and related work.
Commissioners asked detailed follow‑ups. Commissioner Bowen asked about a $350,000 generator radiator repair; staff confirmed the work included renting a large portable generator while the terminal generator was repaired. Bowen also asked about EV chargers; staff said six level‑2 chargers were installed across airport facilities mainly to support airport vehicles and a city‑led vehicle transition.
Abad highlighted capital plans and timing: the airport has budgeted transfers to capital (about $6.1 million in the current budget cycle) and has two major upcoming capital projects noted in the presentation — a long‑term south parking project just finishing design (about $5 million) and relocation of an administrative building (about $1.7 million). Abad said those projects could be delayed if grant funding or priorities change.
On PFAS (per‑ and polyfluoroalkyl substances), Abad said the airport finalized Phase 4 of its PFAS work plan for the Regional Water Quality Control Board and is tracking costs tied to testing and transitioning from aqueous film‑forming foam to fluorine‑free alternatives, with the expectation that federal reimbursements may be available once guidance is issued.
A commissioner asked whether operating expenses exceeded revenues by roughly $400,000 at midyear; Abad said much of the large expenditures occurred in the first half and staff expected the second half to be closer to budget, and that some overages could be offset by savings in capital, which the commission had approved to transfer as needed.
Abad closed by noting the airport’s nomination for Newsweek’s 2025 Best Small Airport reader’s choice award and encouraged votes through the voting period.
