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):
Delta: 46.1%
United: 20.3%
American: 19.8%
USAir: 13.8%
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.
28 comments:
unless you are flying overseas, it costs and arm and a leg to fly out of jackson. (overseas is expensive anyway)
why can't the airport lure a lower-cost carrier to jackson? anything? the airport is dying on the vine...
Good question. It is a national problem. The Wall Street Journal had a story two weeks ago about this very subject. It reported how smaller cities were having a tougher time keeping and recruiting airlines. I'm going to post it later this week.
We almost have to pay Southwest or a similar carrier to be here. The traffic is down 20% in two years. Give the new CEO credit. Operating income instead of a loss.
Is there any current discussion on subsidizing or attracting a low cost carrier? It is not far fetched to think Southwest leaving impacted economic development for our state.
Employer has us driving to MSY or MEM for flights. Fully loaded costs to do so (including paid transit time) still produce net savings versus JAN.
Happy the new airport Jefe has the place in the black but he won't be able to keep jacking fees ad infinitum to offset the continuing carriage losses.
12:52 again. The new CEO is doing a good job with what he has-but will raising landing fees increase traffic? Perhaps they were too low and are just now adjusted to cover cost.
My 'dying on the vine' is more related to economic development. Southwest Airlines did more for our economic development than an outlet strip mall in Pearl OR a Costco.
I recall there was a push last year to get Allegiant Airlines to set up shop. Any update on that? I commend the new airport chief (and the airport commission). I fly weekly and he is doing a great job in making the airport more flyer friendly. I just wish the parking fees weren't so expensive.
I believe until this day that Southwest left for Jackson political reasons. I flew them often with pleasure and do not remember an empty seat on any of the flights. The flights to DC and Chicago were great. Get them back and I will be one of the first to say the new director is doing a good job. Raising fees for vendors etc. is just a bandaid.
I fly 2-3 times per month out of JAN to various locations across the country. My employer allows me to keep my Delta miles, and would rather pay the increased airfare fees to make the flight convenient on me and my family. However, the one thing that I hate the worst about the Jackson airport is the fact that there is NEVER toilet paper in every stall in the women's restroom on the Delta side, and never enough paper towels and/or soap in the restroom as well. I wish that the janitorial staff took better care of the entire place. I have started going to the bathroom at the service station on Airport Road prior to arriving at the airport. It's not hard to take pride in things. JAN staff should try it sometime.
"Southwest Airlines did more for our economic development than an outlet strip mall in Pearl OR a Costco"....excluding all of the fun we had with Cochran versus McDaniel and the kookoo birds, this is the JJ comment of the year.
I would carry toilet paper with me before I would go to the bathroom in a service station on airport road. For God's Sakes Woman!!!
We need to rearrange the country so that more flights will go through Jackson.
Maybe traffic will pick up now that we can fly to Cuba.
Southwest enhanced economic development but Costco and the outlet malls are cultural attractions. Or so say Deputy Pheel and Tater.
... and do not remember an empty seat on any of the [Southwest] flights.
Don't expect truth out of any Jackustan official, especially not Mayor Phony Yarber, why an airline with fully loaded flights would decide to leave a profitable stop. It wasn't all that long ago that Harvey, Ben and the JCVB *secretary* now CEO and President Wanda Collier Wilson was telling the electorate that being a Southwest Airlines city was a key reason to build the disasterous red-ink drowning convention center.
I think the number of flights were reduced and when that happened, the numbers stopped working for Southwest despite whether the flights were actually full.
An airport's numbers directly reflect the economic vitality of its location. Declining passenger numbers reflect a declining economy. If we do not turn around the population decline and economy in the Jackson Metro area then it will continue to decline.
You guys are forgetting that Southwest merged with AirTran. That merger left them with operations in Memphis, Jackson, and New Orleans. Way too much for this sleepy corner of the south. One had to go.
And they're raising parking fees again. The "great job" accolades are ridiculous,as any bonehead can jack up prices. The airport is filthy, the landscaping is atrocious, and the paltry four carriers are a joke. How mich further can Jackson sink in the level of quality anything. ...
You're also forgetting that people who live in Jackson might represent 15% of the flying public as relates to the Wylie Kenneth Medgar Jackson Evers air-stop. Probably even less than THAT!
There IS no 'decline' in the population and economy in The Jackson Metro Area. Too many of you confuse the area between Duling Hall and Crechales with The Jackson Metro Area.
Some of you must just suck the oxygen right out of a room every time you walk into it!
If someone says the weather is pleasant, you have to remind them it was bad last week and will be bad two days from now just to make sure they can't enjoy the moment!
If someone does something good, you'll remind others of a mistake they made.
Has it occurred to any of you that you may not be fun to be around?
9:40: That had something to do with it. The post going up later today that includes part of the WSJ story mentions the purchase of Air Tran and its effect.
6:39; How do you manage to find objectionable a discussion regarding the airport and the status of past and (possibly) future air traffic activity? You're one of those people who can offer a comment but can't possibly refute, add to or join in the ongoing conversation.
Southwest gave up Jackson slots, along with others like at Key West, to gain slots in DC and NY. When it comes to SWA, they've adopted less "low cost" and more profit. We were just one of the sacrificial lambs which lets Delta drive up prices even more. Slots at gates are what matters. And the trend is that foreign carriers are paying off more and more lobbyists to gain slots at all these hubs, killing off domestic carriers and slots. The high rollers from the Gulf, EU, Asia, are quite willing to subsidize their airlines and to work DC and local big city airport authorities to their advantage. Look at the snazzy new international terminals. And on top, LaGuardia is a place where they are lobbying to change an old rule about no flights over 1200/1500 miles. So, LGA would be coast to coast if they end the old rule created to help JFK. So, again, less slots at LGA for shorter haul flights will mean more value to the slots and every other carrier will hang "flyover" airports out to dry. Happening at other hubs too. Get used to driving to ATL and MSY for a fare under 500.
Jackson parking has removed the 30 minute free parking and reduced it to 12 minutes. You cannot get the ticket , find a parking place , walk into the terminal and get or change a ticket in 12 minutes. So you get hit with a $3.00 parking tab!It is a ridiculous and price gouging action by a airport manager and a bunch of appointees that should be ashamed, Not one on the commission has a pilots license or has a clue about aviation. Just political appointees.
10:54, in case you didn't notice, it's 2015. The rest of the world purchases and updates their tickets on the internet, or worse case over the phone. It's not the airports job to subsidize the technology challenged so people can go into the airport and dick around. If it's that important, have someone drive you and wait for you in the cell phone lot.
8:13 am I didn't write " all", I wrote " some".
The toilet paper stuff is nonsense. I've NEVER found the ladies room out of toilet paper nor the need to carry any with me.
She is the unluckiest woman alive if " every time" she visit the rest room she can't find tissue .
Then there's the Cuba comment which I took to be sarcasm . Perhaps , you read that literally.
8:12 a might just be hopelessly ill-informed rather than taking a dig at Jackson.
Then there's the " Jackustan" comment.
If they are doing so well financially, why is there a posted notice that parking fees will increase effective October 1. Memphis and New Orleans save you money on flights and parking.
PittPanther:
I case you don't travel much I want to enlighten you. I do travel a great deal. Almost every airport in the nation including some very big ones allow 30 minute free parking. Sometimes you may have to go back to get a lost bag. Pick someone up . Change a ticket or seat when you can't on the internet. If you have to pay $3.00 for a 12 minute park , just think about the wonderful goodwill Jackson has done. Spends thousands trying to get people to fly or go to the airport and then for $3.00 for 12 minutes makes a bad impression. Great advertising! I am sure the 18 minutes the airport gives up makes a great loss to the airport. Not everything can be done on the internet or phone. Wake up!
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