The number of passengers passing through Jackson Municipal Airport fell August (year to date) 11% compared to August 2014. JMAA reported enplanements and deplanements of 573,175 last month but reported 646,328 in August 2014. However, JMAA reported 710,076 in August 2013, a decrease of 136,901 in two years (20% decrease). Air cargo stayed the same. Delta Airlines dominated the market share (click on images to enlarge):
Those are the traffic numbers, now its time to look at the money.
JMAA reports cash equivalents and cash (non-restricted) of $15.5 million. The airport solons did a good job of forecasting revenue because they reported YTD income of $14.1 million- an increase of $605,000 over projections. Here are some major components of the income:
Aviation income: $5.3 million
Non-aviation income: $6.7 million
Concession income: $2 million
The expenses went in the right direction as they were $10.4 million, yielding an operating income of $3.7 million. This is a big swing from 2014 as the 2014 audit* showed a decline in revenue for the Jackson Municipal Airport Authority as the departure of Southwest Airlines hit the balance sheet. JMAA operated at a loss of $5.225 million dollars. However, the loss included a depreciation charge of $8 million. Here are the numbers for 2014:
Operating revenue: $17.755 million
Operation expenses: $14.113 million
Operating income: $3.6 million
However, there was a substantial depreciation charge that knocked the income statement from a profit to a loss of $5.225 million. The audit stated:
Operating revenues are $731 thousand lower than budget primarily due to reduced parking and concession revenue primarily as a result of Southwest Airlines discontinuing service to the Jackson market in June of 2014. This loss of service was the primary factor in enplanements being 8% under budget for fiscal year 2014.
Thus the cash flow was positive although there was an operating loss. The breakdown of the airport's revenue is:
Aviation income: $6.755 million, was $6.569 million in 2013
Non-aviation income: $8.242 million, was $8.148 million in 2013
Concession income: $2.758 million, $2.918 million in 2013.
Slight increases over 2013 but revenue rose not because business was good but because the audit stated fees went up. The audit stated:
*The $186 thousand increase in aviation income in fiscal year 2014 is due primarily to the landing fee rate being higher by approximately 25% than in fiscal year 2013. The $161 thousand increase in aviation revenue in fiscal year 2013 is due primarily to the increase in terminal rents offset somewhat by a drop in commercial landing fee revenue.
*The $95 thousand increase in non-aviation income from fiscal year 2013 is due primarily to an increase in parking rates for the fiscal year 2014. The $321 thousand increase in non-aviation income in fiscal year 2013 from fiscal year 2012 is due primarily to the full year impact of an additional non-aviation tenant as well as additional space taken by that tenant and the impact of additional terminal rent rate.
*The $161 thousand decrease in concession income in fiscal year 2014 is due to reduced rental car income as a result of reduced enplanements and reduced food and beverage income related to a lower concession fee rate as well as reduced enplanements. The fiscal year 2013 increase in concession revenue of $82 thousand is due primarily to an increase in rental car activity due in large part to a hail storm in the Jackson metro area in March of 2013
*Terminal rents for fiscal year 2014 were increased to $77.89 per square foot from the fiscal year 2013 rate of $75.75 per square foot. The landing fee for fiscal year 2014 was increased to $2.35 from the fiscal year 2013 rate of $1.99 per 1,000 lbs. On May 1, 2014 the landing fee was increased to $2.71/1,000 lbs. to mitigate the effect of the loss of Southwest Airlines.
Thus revenues rose not because business was so good but because fees were raised for passengers and airlines.
The audit also stated JMAA had cash and cash equivalents of $12.6 million and outstanding revenue bonds of $39.335 million.
*Fiscal year for 2014 audit ended September 30, 2014. The financial reports submitted to the board in August 2015 are for October 1, 2014 to July 31, 2015.