U.S. DOMESTIC INDUSTRY OVERVIEW FOR MARCH

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1 Inter-Office Memo Reno-Tahoe Airport Authority Date: April 30, 2009 To: Statistics Recipients From: Krys T. Bart, A.A.E., President/CEO Subject: RENO-TAHOE INTERNATIONAL AIRPORT PASSENGER STATISTICS U.S. DOMESTIC INDUSTRY OVERVIEW FOR MARCH Average Load Factor: 80.5% (all RNO carriers) Air Fares: Down 9% vs. same period last year 1 Number of Flights: Down 8.2%* Capacity of Seats: Down 6.5%* Fuel: $52.38 per barrel ending March 2009 * Source: APGDat RNO OVERVIEW FOR MARCH Average Load Factor: 80.0% Total Passengers: Down 22.7% Air Cargo: Down 13.5% Number of Flights: Down 20.5% Capacity of Seats: Down 14.9% RNO AIRPORT SUMMARY RNO airlines reported 336,652 total passengers for March 2009, a decrease of 22.7% over March 2008, or 98,843 fewer passengers. This is the 13 th month in a row that total passenger count has declined not only at RNO but across the U.S. Although there are no definite signs of a turn-around, the March decline in total passengers was not as steep as the drop in total passengers seen in January (-23%) and February (-26%). 1 Domestic leisure fares as reported by Farecast

2 The March 2009 average airline load factor in RNO was a respectable 80%, an increase of 4.9 points over March This higher load factor is primarily due to a 15% decrease in seat capacity compared to March The 15% decrease in seats is a direct result of airlines adjusting to the sharp decline in demand for air travel throughout the nation due to the recession. RNO Air Cargo at 8,237,243 pounds (3,735.7 metric tons) decreased 13.5% in March 2009 as compared to a 23% decline in total U.S. domestic Air Cargo for the month. For the first quarter of 2009, total cargo at RNO was 19.2% lower than the first quarter of MARCH TOTAL PASSENGERS In March 2009, a total of 336,652 passengers traveled to and from RNO. This is a decrease of 22.7%, or 98,843 fewer passengers, compared to the same period last year. This decline in total passengers is due to the significant drop in demand for air travel to and from the Reno-Tahoe Region resulting from the continuing U.S. recession, the drop in RNO seat capacity and the Easter holiday falling in April In March 2009 there were 18 fewer departures per day, 1500 fewer seats and 6 fewer destinations primarily as a result of Aloha Airlines and ExpressJet going out of business. Year-to-date total passenger count for the first quarter of 2009 was 932,507, which is 23.87% lower than the same period in AIRLINE LOAD FACTORS In the month of March, RNO airlines reported a respectable average load factor of 80%, which is 4.9 points higher than the average load factor in March Delta and US Airways reported the biggest increase over the same period 2008 at 8.2% and 8.1% respectively, while American had the largest decrease in load factor for the month dropping from an 80% load factor in March of 2008 to 67% this March. Horizon s RNO load factor at 83% exceeded their system-wide load factor by over 13 points! Delta s increase resulted from reinstating a RNO-ATL flight that operated on Saturdays and Sundays from March That gave Delta a total of nine weekly departures; one daily to Salt Lake City (SLC) and weekend service to ATL. This additional flight was a seasonal adjustment to meet projected passenger demand for the balance of the ski season and recorded load factors in the 90 s. Southwest reported a load factor of 62% which is a serious concern as it trailed their system-wide load factor for the month by 15 points! Both American and Southwest reported a significant drop in demand for air travel to RNO for the month. and a direct result of the serious drop in demand for air travel to and from RNO. Southwest advised that this March drop in demand forced their decision to cancel one of their three daily departures Boise (BOI) to RNO effective August 6, The mid-day flight averaged only 25 local passengers per day through the month of March. (Local passengers are those traveling between RNO and BOI in each direction) 2

3 March 2009 RNO Airline Load Factor and System-Wide Comparison Airline Reno LF System LF Difference Allegiant 85.2% 88.9% -3.7 Alaska/Horizon 82.9% 69.5% 13.4 US Airways 82.0% 81.9% 0.1 Skywest - Delta Connection 90.2% 77.6% 12.6 United 75.0% 78.7% -3.7 American 67.3% 79.2% Delta 95.3% 82.4% 12.9 Southwest 62.1% 77.3% AIRLINE MARKET SHARE RNO is served by seven major airlines providing 69 nonstop departures to 17 destinations. Southwest Airlines had the largest percent of RNO market share for the month at 54%, an increase of 7 points compared to March March 2009 RNO Airline Market Share Percentage Airline March 2009 March 2008 Change Alaska Air Group Allegiant American Delta Mesa Air Group Skywest Southwest United US Airways Non-Scheduled

4 DOMESTIC AND INTERNATIONAL CHARTER PASSENGERS Year-over-year, RNO charter traffic decreased 55.9% in March 2009 with Allegiant reporting a total of 2,736 charter passengers on the Harrah s Hotel/Casinos Charter Program for the month. Harrah s has reduced their entire charter program by 50% responding to the U.S. Recession and resulting drop in demand for air travel to RNO. SCHEDULED DEPARTURES AND SEATS During the month of March, RNO reported 2,139 departures, 20.5% fewer departures than March The March 2009 available seats at 267,654 represent a 14.9% decrease year-over-year from March All carriers are monitoring demand and bookings on an on-going basis and are adjusting capacity to match the demand for air travel generated by the region. The Reno-Tahoe region s resorts, visitor bureaus, tourism departments and businesses must find a way to create demand for air travel to and from Reno-Tahoe in order to reverse this downward trend. TOTAL OPERATIONS Total RNO airport operations for the month of March declined 20.7% to 8,686 operations, 2,262 fewer operations than March Total airport operations consist of scheduled air carrier arrivals and departures, air taxi flights, general aviation landings and take-offs, and military aircraft operations. MARCH TOTAL CARGO A total of 8,237,243 pounds, or 3,735.7 metric tons, was handled at RNO during the month of March for a 13.5% decrease over March 2008, however, it is a 7 point improvement over January and February U.S. domestic Air Cargo dropped 23.3% for March KTB:cf 4

5 TOTAL PASSENGERS Jan Feb Mar Apr May 475,000 June July Aug Sept Oct 425,000 Nov Dec PASSENGERS 375, , ,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PASSENGERS¹ PASSENGERS¹ Month Percent Change 2009 Percent Change January 395, , % 295, % February 393, , % 300, % March 481, , % 336, % 1st Q Total 1,270,334 1,224, % 932, % April 406, , % May 421, , % June 458, , % 2nd Q Total 1,285,653 1,128, % July 465, , % August 473, , % September 398, , % 3rd Q Total 1,337,564 1,161, % October 397, , % November 375, , % December 377, , % 4th Q Total 1,150, , % TOTALS 5,044,087 4,434, % 932, % ¹Per Landing Reports % change YTD

6 MONTHLY ENPLANED PASSENGERS PASSENGERS¹ Jan Month DIFFERENCE Feb January 200, , , % Mar February 195, , , % Apr March 240, , , % May April 207, ,845 June May 209, ,861 July June 229, ,271 Aug July 232, ,791 Sept August 235, ,576 Oct September 202, ,607 Nov October 201, ,339 Dec November 188, ,456 December 183, ,563 TOTALS 2,527,468 2,224, , % ¹Per Landing Reports Monthly Enplaned Passengers 245, ,000 PASSENGERS 205, , , , ,000 January February March April May June July August September October November December

7 MONTHLY DEPLANED PASSENGERS PASSENGERS¹ Month DIFFERENCE Jan January 195, , , % Feb February 197, , , % Mar March 240, , , % Apr April 198, ,923 May May 211, ,284 June June 228, ,170 July July 233, ,541 Aug August 238, ,426 Sept September 195, ,244 Oct October 195, ,807 Nov November 187, ,800 Dec December 194, ,208 TOTALS 2,517,225 2,210, , % ¹Per Landing Reports - Scheduled and Charter Monthly Deplaned Passengers 245, ,000 PASSENGERS 205, , , , ,000 January February March April May June July August September October November December

8 MONTHLY ENPLANED PASSENGER LOAD FACTOR SUMMARY 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% Monthly Load Factor Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % 75.70% 81.80% 76.45% 77.46% 82.96% 80.80% 81.90% 75.80% 77.00% 71.10% 69.30% % 75.06% 75.20% 72.51% 72.54% 79.51% 79.86% 79.13% 81.62% 76.59% 70.7% 69.70% % 79.81% 80% ENPLANED PASSENGERS* LOAD FACTOR (%) DIFFERENCE Month (2009 / 2008) January 198, , , February 193, , , March 237, , , April 204, , May 206, , June 226, , July 229, , August 232, , September 199, , October 198, , November 184, , December 181, , *** 2,492,087 2,224, , * Per Landing Reports *** AVERAGE OF AIRLINE LOAD FACTORS

9 LOAD FACTOR BY AIRLINE Carrier Seats Available ***Enplaned Passengers 2009 Load Factor (%) 2008 Load Factor (%) Difference Alaska / Horizon 17,612 14, % 79.5% 3.4 Allegiant 1,480 1, % 81.2% 4.0 American* 19,020 13, % 80.5% Delta 5,931 5, % 87.1% 8.2 Delta Connection 6,787 6, % 89.0% 1.2 Southwest 147,574 91, % 64.7% -2.6 United 33,302 24, % 72.7% 2.3 US Airways 14,239 11, % 73.9% 8.1 AVERAGE** 245, , % 75.1% 4.9 *LOAD FACTORS REPORTED BY AIRLINES ** ENPLANED PASSENGERS DOES NOT INCLUDE CHARTER PASSENGERS Airline Load Factor 120.0% 100.0% 80.0% Average 79.8% 60.0% 40.0% 20.0% 0.0% Alaska / Horizon Allegiant American* Delta Delta Connection Southwest United US Airways

10 DAILY ENPLANED SEATS AVAILABLE 12,000 11,500 11,000 10,500 10,000 9,500 9,000 8,500 8,000 7,500 7,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ,130 10,099 10,505 10,332 10,430 10,633 10,633 10,633 10,329 10,122 9,901 10, ,064 10,256 10,153 9,768 9,433 9,645 9,645 9,645 8,804 8, , ,209 8,381 8,634

11 TOTAL AIR CARRIER MARKET SHARE Carrier Passengers Alaska Air Group 29, % Allegiant 2, % American 25, % Delta 10, % Delta Connection* 12, % Southwest 181, % United 48, % US Airways 23, % Non-Scheduled 2, % Totals 336, % *Delta Connection carriers: ExpressJet and SkyWest Percentage of Total Alaska Air Group, 8.6% American, 7.7% Allegiant, 0.7% Delta, 3.3% Delta Connection*, 3.6% Non-Scheduled, 0.8% US Airways, 6.9% Southwest, 53.9% United, 14.5%

12 Jan TOTAL PASSENGERS DOMESTIC & INTERNATIONAL DOMESTIC SCHEDULED PASSENGERS Feb Mar Apr 540,000 May June July Aug Sept Oct Nov Dec PASSENGERS 490, , , , , ,000 January February March April May June July August September October November December DOMESTIC CHARTER PASSENGERS 7,500 6,500 5,500 PASSENGERS 4,500 3,500 2,500 1,500 January February March April May June July August September October November December 2009 DOMESTIC¹ INTERNATIONAL¹ 2009 TOTAL 2009 Charter 2008 Charter DIFFERENCE MONTH Scheduled Charter Scheduled Charter Passengers Passengers Passengers Passengers January 294,166 1, ,827 1,661 4, % February 297,201 2, ,028 2,827 4, % March 333,916 2, ,652 2,736 6, % April May June July August September October November December TOTALS 925,283 7, ,507 7,224 14, % ¹Per Landing Reports

13 MONTHLY SCHEDULED DEPARTURES 2,900 2,700 2,500 2,300 2,100 1,900 1,700 1,500 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ,462 2,239 2,534 2,468 2,520 2,544 2,628 2,644 2,449 2,489 2,408 2, ,608 2,434 2,598 2,396 2,401 2,445 2,515 2,455 2,030 2,069 1,905 1, ,949 1,904 2,139

14 MONTHLY AVAILABLE SEATS 340, , , , , , ,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC , , , , , , , , , , , , , , , , , , , , , , , , , , ,654

15 TOTAL OPERATIONS 15,000 14,000 13,000 Number of Operations 12,000 11,000 10,000 9,000 8,000 7,000 6,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of Operations 07 to 08 Percent Month Change January 12,628 10,163 8, % February 10,322 10,420 7, % March 13,933 10,948 8, % April 11,424 10,501 May 12,734 10,807 June 11,733 11,753 July 12,657 11,599 August 12,057 11,837 September 11,706 11,572 October 10,934 8,889 November 10,624 8,535 December 10,054 8,083 TOTALS 140, ,107 25, % % change YTD

16 TOTAL CARGO Jan Feb Mar Apr May June July Aug Sept Oct Dec CARGO POUNDS (in millions) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC CARGO (IN POUNDS) PERCENT Month METRIC TONS CHANGE January 10,293,920 11,231,880 8,777,047 3, % February 10,313,441 9,786,730 7,675,284 3, % March 11,129,070 9,519,983 8,237,243 3, % 1st Quarter 31,736,431 30,538,593 24,689,574 11, % April 9,653,603 9,915,236 May 10,718,860 9,923,064 June 10,483,160 8,893,972 2nd Quarter 30,855,623 28,732,272 July 10,377,947 9,811,115 August 11,736,465 9,763,038 September 10,311,212 9,890,572 3rd Quarter 32,425,624 29,464,725 October 10,813,406 9,971,505 November 10,646,261 8,811,895 December 12,772,059 12,713,339 4th Quarter 34,231,726 31,496,739 TOTALS 129,249, ,232,329 24,689,574 11, % % change YTD