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July 28, 2011

DFW Airport approves $606 million budget for FY2012

Dallas/Fort Worth Airport board approved a $600 million budget for its next fiscal year, about 5.6 percent more than its current year.

Most of the budget increase is due to higher debt service costs as the airport continues to issue more bonds for its $1.9 billion terminal renovation project. The airport began a seven-year renovation project that will update Terminal A, B, C and E.

Net revenues are expected to decline by $4.8 million in 2012 partly due to the loss of revenues from terminal areas that will be closed next year as part of the renovation projects.

As part of its budget, the airport is expecting airlines’ costs to total $202.5 million, about flat compared to last year, although staff told board members it hopes that it can lower those costs, which include landing fees and terminal rents, by another $4.5 million.

“Being cost competitive is one of our key results we look at for DFW Airport,” said airport chief executive Jeff Fegan. “In 2012, we will be seeing some minor increase in cost.”

The airport budget included about $15.7 million in additional expenses for 2012 such as pension plan contributions, healthcare costs, merit raises and de-icing equipment. It also included an additional $700,000 for busing passengers to and from the new Express North parking lot addition that has 1,000 new spaces and will be opened in November.

The airport’s fiscal year starts on October 1. The total budget approved on Thursday was $606 million and included a $5 million contingency fund that can only be used with board approval.

It was also the first airport board meeting for the two newly-elected mayors of Dallas and Fort Worth. Dallas mayor Mike Rawlings made the motion to approve the budget and then Fort Worth mayor Betsy Price seconded the budget motion before it passed.

-Andrea Ahles

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