Non-Aeronautical Revenue

September 2013

AirportInfo

Non-Aeronautical Revenue

Non-aeronautical revenues critically determine the financial viability of an airport, as these

revenue sources tend to generate higher profit margins in comparison with aeronautical

activities. Aeronautical revenues are collected from such sources as landing charges,

which are circumscribed by either regulated tariffs, contractual agreements between

carriers and airports, or a combination thereof. Thus, airports are heavily reliant on the

non-aeronautical side of the business as a driver of revenue growth.

These sources include:

Concessions – Rents paid by gift shops, restaurants, and newsstands, and, if agreed

to in the concession contract, a percentage of the profits.

Parking and Airport Access – Fees for all airport-owned parking lots and in some

cases, off-airport concessions bringing travelers to and from the airport.

Rental Car Operations – Revenue from rental car operations within or outside a

terminal.

Land rent – Excess airport land may be rented for golf courses, office buildings, hotels,

farming or other uses.

Advertising – Ads placed on airport walls, billboards and buses is a source of airport

income.

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3

Total U.S. Airport Operating Revenue Airport Focus

$6,695

$11,792

$2,020

$3,143

$839

$1,333

$446

$789

2000 2012

Large Hub Medium Hub Small Hub Non-Hub

Ten-year comparison of total airport operating revenue which includes both aeronautical and

non-aeronautical revenue. Total airport operating revenue has increased over 59% in the past

12 years. Medium hubs increased the fastest followed by small hubs.

Source: FAA, ASS-400: CATS: Report 127

▲56.8%

▲64.3%

▲62.9%

▲56.5%

In Millions of U.S. Dollars

4

Aeronautical vs. Non-Aeronautical Revenue

U.S. Airports (2000-2012) Airport Focus

Source: FAA, ASS-400: CATS: Report 127

-10%

-5%

0%

5%

10%

15%

0

1

2

3

4

5

6

7

8

9

10

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Aeronautical Operating Revenue Nonaeronautical Operating Revenue

Aeronautical Percentage Change from Previous Year Nonaeronautical Percentage Change from Previous Year

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Aeronautical vs. Non-Aeronautical

Revenue for U.S. Airports

Source: FAA, ASS-400: CATS: Report 127

Airport Focus

*Includes revenues for services such as telecommunications, internet access, advertising,

barbershops, shoeshine stands, spas, and revenues from other non-aeronautical terminal uses not

otherwise listed.

Aeronautical Revenue $9,312

55.2%

Non- Aeronautical

Revenue $7,556 44.8%

2012 (In Millions of U.S. Dollars)

Total Operating Revenues $16,869 Million

Total Non-Aeronautical Revenues $7,556 Million

Parking and Ground Transportation,

$3.114 41.2%

Rental Cars, $1,498 19.8%

Other, $748 9.9%

Land and Non-Terminal , $550

7.3%

Retail and Duty Free, $630 8.3%

Food and Beverage, $533 7.1%

*Services , $378 5.0% Hotel, $105 1.4%

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Non-Aeronautical Revenue by Hub Size

U.S Airports (2001 – 2012)

62.5% 61.8% 61.6% 63.3%

64.4% 60.2%

64.7% 65.0% 64.2% 63.6%

64.1% 65.2%

23.0% 23.2% 22.5%

22.1% 21.4%

21.1%

21.4% 21.1%

21.4% 20.3% 19.9%

20.1%

10.1% 10.3% 10.7%

10.2% 9.9%

10.9%

9.7% 9.6%

9.7% 11.2%

11.0% 10.0%

4.4% 4.7% 5.2%

4.4%

4.3% 4.8%

4.2% 4.3%

4.8% 4.9%

5.0% 4.7%

0

1

2

3

4

5

6

7

8

9

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Large Medium Small Non-Hub

7.2% (3.9%)

16.6% 5.3%

(8.0%) 1.8%

6.8%

Source: FAA, ASS-400: CATS: Report 127

3.9% (5.9%) 1.8%

11.8%

Airport Focus

2.0%

7

Revenue from Terminal Concessions

U.S. Airports (2001 – 2012)

$375 $334 $309 $428

$496 $491 $547 $569 $465 $484 $526 $536

$463 $395 $415

$439 $428 $446

$533 $585

$570 $544 $603 $632

$181

$191 $217

$246 $253 $280

$309

$314

$373 $340

$378 $384

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Food and Beverage Retail and Duty Free Services and Other

2.3%

15.4% 5.6%

3.3%

12.3%

5.4% (4.4%)

(2.9%)

(10.5%)

(9.4%)

2.8% 9.3%

Source: FAA, ASS-400: CATS: Report 127

Airport Focus

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Revenue from Rental Car, Parking & Ground

Transportation for U.S. Airports (2001 – 2012) Airport Focus

$2.03 $1.86 $2.02 $2.23

$2.50 $2.67 $2.91 $3.00 $2.88 $2.91 $3.07 $3.17

$1.04 $1.02

$1.05 $1.11

$1.19 $1.30

$1.41 $1.50

$1.37* $1.39* $1.48*

$1.52*

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Parking Rental Car

* 2009 -2012 - Excludes customer facility charges

Source: FAA, ASS-400: CATS: Report 127

6.5% (6.2%)

2.4%

9.1%

9.5%

12.3%

12.5% 6.1%

(8.8%) 1.9% 8.4%

4.8%

9

Public Parking & Ground Transportation Revenue

Per Enplanement (FY10)

Median $3.60

Median $5.80

Median $7.23

Median $8.45

Median $5.52

$0

$2

$4

$6

$8

$10

$12

Large Hub Medium Hub Small Hub Non-Hub Canadian

Source: ACI-NA 2011 Airport Performance Benchmarking Survey

Overall Mean: $5.55 (+0.91%) FY09 Overall Mean: $5.50

Airport Focus

Participating Airports

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Rental Car Customer Facility Charge (CFC) Airport Focus

Source: ACI-NA 2011 Airport Performance Benchmarking Survey, and TRB ACRP Synthesis 1: Innovative Finance and Alternative Sources of Revenue for Airports

CFCs may be assessed on a per-transaction basis (i.e., as a one-time fee for each rental car

contract) or on a per-transaction-day basis (i.e., as a fee charged for each day the rental car contract

is in effect).

A CFC is collected at some airports by each rental car concessionaire from its customers and used

to pay all or a portion of the operating and capital costs of a consolidated rental car area or

structured facility, and may include the cost of transportation to the terminal.

48% (46 out of 96) have an airport consolidated Rental Car Facility.

52% (50 out of 96) use Customer Facility Charge (CFC) to pay the Rental Car Facility.

Median $3.38

Median $4.00

$0

$2

$4

$6

$8

$10

$12Daily Transaction

Participating Airports

11

ACI-NA Survey Briefs

Median $44

Median $18 Median $17

$0

$10

$20

$30

$40

$50

$60

$70

$80

Large Hub Medium Hubs Small Hub

ACI-NA Committee Discussion Forums provide members instant access to their peers and serve as an

informal survey tool. Below is a recent survey summary:

TSA & Employee Car Parking

74% (29 out of 39) airports charge for tenant employee car parking.

31% (12 out of 29) airports charge TSA for car parking.

Majority of airports charge their tenants different rates, depending who they are employed by.

Median monthly tenant parking employee cost by hub size:

Source: ACI-NA Finance Committee Discussion Forum

Airport Focus

Participating Airports

AirportInfo September 2013

Contact:

Economic Affairs and Research

Tel: 202-293-8500

Email: EconomicAffairs@aci-na.org

www.aci-na.org