City and County of Denver Municipal Airport System ANNUAL ...

City and County of Denver
Municipal Airport System
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
December 31, 2010 and 2009
Car rental revenues increased $1.2 million or 2.8%, to $44.2 million due to an increase in O&D passenger traffic. Total
passenger traffic increased 4.1% for the year ended December 31, 2010; O & D passenger increased 2.9%.
Aviation fuel tax increased in 2010 by $6.8 million, or 40.5%, due to increased in fuel prices and flight operations.
Other sales and charges increased by $3.0 million or 25.7% due to an increase in natural resources related to the purchase of
the oil and gas wells this year which was offset by a decrease in charges to tenants for utilities and trash, interest and
miscellaneous revenues.
2009/2008
Operating revenues increased by $23.7 million, or 4.4% from $540.8 million in 2008 to $564.5 million in 2009, primarily
due to increase in facility rentals and landing fees, which is offset by a decrease in concession, car rental, parking and
aviation fuel tax. Landing fees increased by $15.6 million, or 16.5%, which is attributable to the increase in landing fee rates
per 1,000 pounds landed weight from $2.68 for signatory and $3.20 for non-signatory airlines in 2008 to $3.40 for signatory
and $4.08 for non-signatory airlines in 2009.
Facility rentals increased by $28.7 million, or 14.5% with the increase being primarily attributable to the Airport 2009 yearend
revenue credit, which was $29.3 million, thus not meeting the $40.0 million cap for the first time in several years.
Additionally, there was an increase in space rent and preferential use.
Concession revenues between 2009 and 2008 decreased by $1.2 million, or 2.9%, primarily due to the decrease in passenger
traffic. Additionally, there was a decrease in spend rate per enplaned passenger from $9.71 in 2008 to $9.62 in 2009.
Parking revenue declined $4.4 million, or 3.7%, which is attributable to the decrease in originating and destination (O & D)
traffic that was partly offset by a rate increase effective July 1, 2009.
Car rental revenues decreased $2.6 million or 5.8%, to $43.0 million due to a decrease in O&D passenger traffic. Total
passenger traffic decreased 2.1% for the year ended December 31, 2009; O & D passenger declined 5.0%.
Aviation fuel tax decreased in 2009 by $10.1 million, or 37.6%, due to the decrease in fuel price and usage.
Other sales and charges decreased by $2.1 million or 15.4% due to the decrease in price of natural resources (oil and gas),
thus reflecting the decrease in oil and gas prices from record highs in 2008.
Operating Expenses Before Depreciation and Amortization
(In thousands)
2010 2009 2008
Operating expenses before depreciation
and amortization
Personnel services $ 112,230 $ 116,540 $ 114,288
Contractual services 172,492 166,469 166,299
Repair and maintenance projects 105,943 69,975 67,737
Maintenance, supplies, and materials 19,200 26,533 25,505
Total operating expenses
before depreciation
and amortization $ 409,865 $ 379,517 $ 373,829
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