Inter-Office Memo Reno-Tahoe Airport Authority Date: November 22, 2010 To: Chairman and Board of Trustees From: Krys T. Bart, A.A.E., President/CEO Subject: RENO-TAHOE INTERNATIONAL AIRPORT OCTOBER 2010 PASSENGER & CARGO STATISTICS U.S. DOMESTIC INDUSTRY OVERVIEW FOR OCTOBER 2010 All RNO Carriers Systemwide year over year comparison Average Load Factor: 80.2% up 1.7 pts Number of Flights: * 15.2% up Capacity of Seats: * 14.6% up Crude Oil: ** $75.8 per barrel October 2010 vs. $70.1 per barrel October 2009 RNO OVERVIEW FOR OCTOBER 2010 year over year comparison Total Passengers: Up 3.9% Average Load Factor: 68.2% down (13.4) pts Number of Flights: Up 16.7% Capacity of Seats: Up 11.1% Total Cargo: Up 16.4% Source:*APGDat RNO Monthly Flight Activity Reports ** U.S. Energy Information Administration AIRPORT SUMMARY Reno-Tahoe International Airport experienced another positive month in October 2010 from both passenger and cargo traffic. The positive passenger growth was the fifth consecutive monthly increase. Total passengers at RNO increased 3.9% to 306,718 in October 2010 versus the same period last year. October 2010 calendar year-to-date passenger count was 3,251,834, which is 1.8% above October 2009 year-to-date. In addition, 9.9 million pounds of cargo were handled at Reno-Tahoe International Airport, up 16.4% versus last year. This represents the second month in a row that cargo volumes have returned to 2008 levels. October 2010 year-to-date cargo volume at RNO was 89.1 million pounds, which is 8.1 million pounds greater than the cargo volumes
carried in the same period last year, an increase of 10%. Year over year cargo volumes carried at RNO have been up for the past nine months. RNO is served by six major airlines providing 69 nonstop departures to 15 destinations. During the month of October 2010, RNO reported 2,170 scheduled departures, which is an increase of 16.7% over October 2009. This increase was due to the additional capacity by American Airlines to Los Angeles and Dallas, United Airlines to Denver and Los Angeles and US Airways to Phoenix. Southwest Airlines also added a daily flight to Phoenix in the beginning of this year. In addition, seat capacity, at 247,442 seats, increased 11.1% versus last year. Increased capacity at RNO resulted in a low average load factor of 68.2%. It may take a few more months for the market demand to absorb the additional capacity at Reno-Tahoe International Airport. TOTAL PASSENGERS In October 2010, the passenger increase of 3.9% versus last year was driven by American Airlines with a 47.9% increase as a result of their added capacity. Year over year passenger count for Southwest Airlines was up 1.2%, Alaska Airlines was up 4.4%, Delta Airlines was up 8.3% and United Airlines was up 9.9%. US Airways passenger count, however, decreased 22.1% below last year. AIRLINE LOAD FACTORS A drop of 13.4 load factor points from 81.6% in October 2010 to 68.2% in October 2009 was a result of frequency increase of 16.7%. October 2010 RNO Airline Load Factor and Systemwide Comparison Airline Reno LF System LF Difference Alaska/Horizon 73.1% 81.1% (8.0) American 77.0% 83.4% (6.4) Delta 73.1% 83.0% (9.9) Southwest 62.1% 81.7% (19.6) United 69.4% 85.7% (16.3) US Airways 54.3% 83.8% (29.5) 2
AIRLINE MARKET SHARE In October 2010, Southwest Airlines carried 163,047 passengers with a passenger market share of 53.2%. The next highest market share was United Airlines at 13.8%. American Airlines, with the third largest market share percentage, had the largest year over year increase in market share of 3.4 points to 11.5% as a result of adding three new daily departures to Los Angeles on American Eagle in June of this year. October 2010 RNO Airline Market Share Percentage October 2010 October 2009 Change Alaska/Horizon 7.4% 7.4% 0.0 American 11.5% 8.1% 3.4 Delta 7.7% 7.4% 0.3 Southwest 53.1% 54.5% (1.3) United 13.8% 13.0% 0.7 US Airways 6.16% 8.2% (2.1) Non-Scheduled 0.3% 1.4% (1.1) DOMESTIC AND INTERNATIONAL CHARTER PASSENGERS RNO charter traffic decreased 78.3% in October 2010 versus October 2009. A total of 908 charter passengers was reported in October 2010 compared to 4,184 passengers the previous year. The vast majority of charter traffic is driven by the Harrah s charter program which has been scaled back. SCHEDULED DEPARTURES Schedule Changes Since October 2009 Market Add/Cancel Month American Airlines LAX Added 3 daily flights Jun-10 American Airlines DFW Added a daily flight Mar-10 Alaska/Horizon SEA Added a daily flight Jun-10 United Airlines DEN Added a daily flight Jan-10 United Airlines LAX Added a daily flight Jan-10 Added 2 daily flights Jul-10 US Airways PHX Added a daily flight Oct-10 Southwest Airlines PHX Added a daily flight Jan-10 Southwest Airlines BOI Added a daily flight Mar-10 Southwest Airlines DEN Started a daily service Jan-10 United Airlines SFO Cancelled a double daily* Nov-09 Southwest Airlines LAS Cancelled a double daily* Sep-10 *seasonal 3
TOTAL CARGO In October 2010, dedicated cargo carriers carried 16.4% more cargo versus October 2009. Cargo volumes for all-cargo carriers were up across the board: Ameriflight 11.2%, FedEx 19.8% and UPS 13.1%. However, belly cargo carried by Alaska Airlines and Southwest Airlines decreased 10.8% for the same period. The U.S. Census Bureau reported that overall retail sales increased 0.7% against October 2009. Nonstore retailer (i.e. e-commerce) sales increased 13.5%, a large contributor to northern Nevada air cargo. 4
Total Passengers October 2010 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 5
PASSENGERS Percent PASSENGERS Percent Month 2008 2009 Change 2010 Change January 385,612 295,827-23.28% 293,756-0.70% February 403,819 300,028-25.70% 294,662-1.79% March 435,495 336,652-22.70% 346,846 3.03% 1st Q Total 1,224,926 932,507-23.87% 935,264 0.30% April 354,768 304,829-14.08% 309,533 1.54% May 370,145 312,441-15.59% 312,378-0.02% June 403,441 347,038-13.98% 361,406 4.14% 2nd Q Total 1,128,354 964,308-14.54% 983,317 1.97% July 411,332 352,504-14.30% 367,997 4.40% August 412,002 344,815-16.31% 352,764 2.31% September 337,851 304,249-9.95% 305,774 0.50% 3rd Q Total 1,161,185 1,001,568-13.75% 1,026,535 2.49% October 327,146 295,080-9.80% 306,718 3.94% November 283,256 268,087-5.36% December 309,771 294,385-4.97% 4th Q Total 920,173 857,552-6.81% TOTALS 4,434,638 3,755,935-15.30% 3,251,834 1.83% % change YTD Total Cargo October 2010 (Millions of Pounds) 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 6
CARGO (IN POUNDS) PERCENT Month METRIC TONS CHANGE January 11,231,880 8,777,047 8,695,804 3,943.7-0.93% February 9,786,730 7,675,284 7,679,924 3,483.0 0.06% March 9,519,983 8,237,243 8,814,895 3,997.7 7.01% 1st Quarter 30,538,593 24,689,574 25,190,623 11,424 2.03% April 9,915,236 7,841,936 8,633,892 3,915.6 10.10% May 9,923,064 7,619,402 8,273,448 3,752.1 8.58% June 8,893,972 7,870,143 8,737,038 3,962.4 11.01% 2nd Quarter 28,732,272 23,331,481 25,644,378 11,630 9.91% July 9,811,115 7,967,294 9,113,694 4,133.2 14.39% August 9,763,038 7,929,474 9,388,206 4,257.7 18.40% September 9,890,572 8,553,601 9,871,400 4,476.8 15.41% 3rd Quarter 29,464,725 24,450,369 28,373,300 12,868 16.04% October 9,971,505 8,519,360 9,915,411 4,496.8 16.39% November 8,811,895 8,093,678 December 12,713,339 13,149,429 4th Quarter 31,496,739 29,762,467 TOTALS 120,232,329 102,233,891 89,123,712 40,418.9 10.04% Enplaned Passengers October 2010 % change YTD 250,000 200,000 150,000 100,000 50,000 0 7
PASSENGERS Month DIFFERENCE JAN 195,981 149,813 148,805-0.67% FEB 200,851 150,894 145,935-3.29% MAR 221,875 170,497 173,783 1.93% APR 179,845 152,685 155,967 2.15% MAY 183,861 155,965 154,683-0.82% JUN 201,271 174,608 173,887-0.41% JUL 205,791 174,412 184,017 5.51% AUG 205,576 172,175 174,797 1.52% SEP 172,607 154,305 154,522 0.14% OCT 166,339 150,427 154,380 2.63% NOV 141,456 134,009 DEC 148,563 142,202 TOTALS 2,224,016 1,881,992 1,620,776 11.37% Deplaned Passengers October 2010 % change YTD 250,000 200,000 150,000 100,000 50,000 0 8
PASSENGERS Month DIFFERENCE JAN 189,631 146,014 144,826-0.81% FEB 202,968 149,134 148,506-0.42% MAR 213,620 166,155 172,823 4.01% APR 174,923 152,144 152,986 0.55% MAY 186,284 156,476 155,702-0.49% JUN 202,170 172,499 184,651 7.04% JUL 205,541 178,092 183,031 2.77% AUG 206,426 172,640 176,391 2.17% SEP 165,244 149,944 149,900-0.03% OCT 160,807 144,653 151,883 5.00% NOV 141,800 134,078 DEC 161,208 152,183 TOTALS 2,210,622 1,874,012 1,620,699 25.33% % change YTD Enplaned Passengers - Average Load Factor October 2010 100% 90% 80% 70% 60% 50% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 68.1% 75.1% 75.2% 72.5% 72.5% 79.5% 79.9% 79.1% 81.6% 76.6% 70.7% 69.7% 2009 71.0% 78.2% 80.0% 74.9% 78.8% 88.6% 85.6% 86.9% 86.3% 83.0% 74.4% 74.1% 2010 73.0% 76.4% 81.1% 75.1% 76.1% 80.7% 80.5% 76.8% 72.5% 68.2% 9
ENPLANED PASSENGERS* LOAD FACTOR (%) DIFFERENCE Month (2010 / 2009) January 195,981 149,813 148,930 68.10 71.02 73.02 2.0 February 200,851 150,894 146,156 75.06 78.20 76.44-1.8 March 221,875 170,497 174,023 75.20 80.00 81.08 1.1 April 179,845 152,685 156,547 72.51 74.85 75.08 0.2 May 183,861 155,965 156,676 72.54 78.75 76.10-2.6 June 201,271 174,608 176,755 79.51 88.59 80.71-7.9 July 205,791 174,412 184,966 79.86 85.61 80.53-5.1 August 205,576 172,175 176,373 79.13 86.92 76.77-10.1 September 172,607 154,305 155,874 81.62 86.33 72.54-13.8 October 166,339 150,427 154,835 76.59 82.97 68.17-14.8 November 141,456 134,009 70.67 74.34 December 148,563 142,202 69.67 74.06 *** 2,224,016 1,881,992 1,631,135 75.04 80.27 76.04-5.3 Load Factor by Airlines October 2010 100% 90% 80% Average 68.2% 70% 60% 50% 40% 30% 20% 10% 0% Alaska / Horizon American Delta Southwest United US Airways 10
Carrier Seats Available Enplaned Passengers 2010 Load Factor (%) 2009 Load Factor (%) Difference Alaska / Horizon 15,884 11,613 73.1% 83.6% -10.5 American 22,852 17,591 77.0% 94.1% -17.1 Delta 15,943 11,657 73.1% 90.9% -17.8 Southwest 132,084 81,965 62.1% 62.9% -0.9 United 31,446 21,835 69.4% 77.0% -7.6 US Airways 17,888 9,719 54.3% 81.0% -26.7 AVERAGE 68.2% 81.6% -13.4 Total Air Carrier Market Share October 2010 11
Non-Scheduled, 0.3% Alaska Air Group, 7.5% American, 11.5% Delta, 7.7% Southwest, 53.1% US Airways, 6.2% United, 13.8% Carrier Passengers Percentage of Total Alaska Air Group 22,853 7.45% American 35,337 11.52% Delta 23,511 7.67% Southwest 162,936 53.12% United 42,283 13.79% US Airways 18,890 6.16% Non-Scheduled 908 0.30% Totals 306,718 100.00% Total Passengers Domestic Charter October 2010 12
7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Total Passengers Domestic Scheduled October 2010 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 DOMESTIC INTERNATIONAL 2010 TOTAL 2010 Charter 2009 Charter DIFFERENCE MONTH Scheduled Charter Scheduled Charter Passengers Passengers Passengers Passengers JAN 293,631 125 0 0 293,756 125 1,661-92.5% FEB 294,441 221 0 0 294,662 221 2,827-92.2% MAR 346,363 483 0 0 346,846 483 2,736-82.3% APR 307,996 1,537 0 0 309,533 1,537 3,792-59.5% MAY 308,951 3,427 0 0 312,378 3,427 5,333-35.7% JUN 356,401 5,005 0 0 361,406 5,005 4,888 2.4% JUL 366,231 1,766 0 0 367,997 1,766 3,369-47.6% AUG 350,205 2,559 0 0 352,764 2,559 3,859-33.7% SEP 303,091 2,683 0 0 305,774 2,683 3,056-12.2% OCT 305,810 908 0 0 306,718 908 4,184-78.3% NOV 0 4,410-100.0% DEC 0 445-100.0% TOTALS 3,233,120 18,714 0 0 3,251,834 18,714 40,560-61.0% 13
Monthly Scheduled Departures October 2010 2,900 2,700 2,500 2,300 2,100 1,900 1,700 1,500 2008 2,608 2,434 2,598 2,396 2,401 2,445 2,515 2,455 2,030 2,069 1,905 1,955 2009 1,949 1,904 2,139 2,010 1,984 2,010 2,077 2,046 1,800 1,860 1,740 1,922 2010 1,922 1,764 1,984 1,860 1,953 2160 2,232 2,201 2070 2,170 Monthly Scheduled Departure Seats October 2010 350,000 325,000 300,000 275,000 250,000 225,000 200,000 2008 301,118 284,419 307,910 280,220 278,666 278,969 287,630 281,406 246,105 251,452 230,707 238,225 2009 237,926 234,668 267,654 241,890 240,560 237,780 245,706 240,064 215,730 222,673 214,740 232,996 2010 229,369 216,272 243,691 233,730 245,768 248,340 256,618 249,209 235,830 247,442 Total Operations October 2010 14
14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of Operations 09 to 10 Percent Month Change January 10,163 8,985 7,485-16.69% February 10,420 7,498 6,813-9.14% March 10,948 8,686 7,569-12.86% April 10,501 8,391 7,313-12.85% May 10,807 7,987 7,454-6.67% June 11,753 8,492 8,361-1.54% July 11,599 9,229 8,363-9.38% August 11,837 9,086 8,402-7.53% September 11,572 9,516 9,209-3.23% October 8,889 8,036 7,547-6.09% November 8,535 7,064 December 8,083 6,531 TOTALS 125,107 99,501 78,516 0.83% % change YTD 15