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County reviews updated Allegiant operating agreement, staff projects revenue boost

Pinellas County Board of County Commissioners (workshop) · August 6, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

St. Pete–Clearwater International Airport staff presented a proposed five-year operating agreement with Allegiant Airlines that consolidates fees into a per-turn structure and projects about a 40% rate increase beginning FY27, generating roughly $1.02–$1.2 million the first year to support capital improvements and staffing.

Airport director Mark Sprague told the board the airport has seen rapid growth and needs a simpler, more predictable fee structure. "Passenger traffic has increased over 67% in the last 5 years," Sprague said, and staff propose consolidating six revenue structures into three and adding a per-turn facility fee intended to align costs with passenger use.

Sprague said the new agreement would set five-year rates and provide predictable planning for Allegiant, while projecting a rate increase of about 40% starting in fiscal year 2027. He described the forecasted first-year revenue as "approximately $1.02 $1,200,000 additional revenue in the first year over the current agreement," with an annual incremental increase of roughly $174,000 thereafter (about 3% per year). Commissioners asked for the underlying consultant pro forma and financial breakdown used to reach the 40% figure. "I'd really like to see the pro forma from the consultant that you referenced," Commissioner Nowicki said, requesting the supporting analysis before a final contract is brought forward.

Commissioners also clarified that Allegiant's exclusivity in the new agreement covers office space, not common-use gates or ticket counters, and asked about cost-per-enplanement comparisons. Sprague said the airport's CPE under the new structure would rise from about $2.35 to $3.11, which he characterized as still competitive for the market. Sprague said the signed contract is in current review and staff plan to bring the agreement to the board in September.

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