Dallas/Fort Worth Airport plans to increase its parking rates at the terminal and its remote lots as part of its budget for 2014.
At the airport’s finance committee meeting on Tuesday, chief executive Jeff Fegan presented the $656.3 million budget which included the parking increases. Generating more revenue from parking and concessions are part of the airport’s plan to help offset growing debt service for the airport’s $2 billion terminal renovation project.
Fegan said the airport expects a two percent growth in passengers for a record 61.2 million in fiscal year 2014 with a record number of international flights. The pending merger between US Airways and American Airlines will also result in positive growth for the airport, he said.
DFW Airport expects parking rate increases to generate an additional $3.7 million in revenues. Airport staff proposed raising remote parking lot fees by $1 per day to $9 per day and increasing terminal intra-day parking for zero to thirty minutes to $2, up from $1. People picking up friends or family at the airport who stay for 31 minutes to two hours will pay $3, up from the current rate of $2.
“The goal is to convert to more toll tag usage by customers,” said airport chief financial officer Chris Poinsatte. The airport expects its new parking control system, which has more automated entry and exit lanes and fewer booth attendants for cash payments, to go live on August 26. Toll tag rates will remain the same under the proposed parking increases.
If the full board approves the budget on Thursday, the parking rate increases will go into effect on October 1, the first day of the airport’s fiscal year.
DFW also expects to generate an additional $1.7 million from the addition to its Express parking lot and an additional $5.2 million from concessions revenues as its new food vendors in the renovated portion of Terminal A will be in operation for a full year.
The $656.3 million budget, which includes $5 million in a contingency fund, is only slightly higher than the current $650.1 million budget outlook for 2013. The airport anticipates growing net revenues by 4.7 percent to $91.8 million.
Costs for airlines will also increase $19.4 million, mainly to help pay for the debt service related to the renovations of Terminal A, B, C and E. Landing fees, however, will shrink to $2.82 per l,000 pounds of maximum gross landing weight of an aircraft. In the current fiscal year, landing fees averaged $2.97.
Operating expenses increase 2.4 percent to $368.8 million in the FY2014 budget while the airport’s gross debt service is 2.6 percent lower at $282.5 million.