U.S. DOMESTIC INDUSTRY OVERVIEW FOR MARCH

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

The March 2009 average airline load factor in RNO was a respectable 80%, an increase of 4.9 points over March 2008. This higher load factor is primarily due to a 15% decrease in seat capacity compared to March 2008. 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 2008. 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 2009. 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 2008. 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 2008. 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 7-29. 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, 2009. 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

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% -11.9 Delta 95.3% 82.4% 12.9 Southwest 62.1% 77.3% -15.2 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 2008. March 2009 RNO Airline Market Share Percentage Airline March 2009 March 2008 Change Alaska Air Group 8.62 8.90 -.28 Allegiant 0.70 0.59 +0.11 American 7.70 7.86 -.16 Delta 3.26 5.26 +2.0 Mesa Air Group 2.81 1.51 +1.3 Skywest 3.57 1.40 +2.17 Southwest 53.91 46.78 +7.13 United 14.54 12.78 +1.76 US Airways 4.08 5.41-1.33 Non-Scheduled 0.81 1.42 -.61 3

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 2008. The March 2009 available seats at 267,654 represent a 14.9% decrease year-over-year from March 2008. 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 2008. 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 2009. U.S. domestic Air Cargo dropped 23.3% for March 2009. KTB:cf 4

TOTAL PASSENGERS Jan Feb Mar Apr May 475,000 June July Aug Sept Oct 425,000 Nov Dec PASSENGERS 375,000 325,000 275,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PASSENGERS¹ PASSENGERS¹ Month 2007 2008 Percent Change 2009 Percent Change January 395,878 385,612-2.59% 295,827-23.28% February 393,086 403,819 2.73% 300,028-25.70% March 481,370 435,495-9.53% 336,652-22.70% 1st Q Total 1,270,334 1,224,926-3.57% 932,507-23.87% April 406,237 354,768-12.67% May 421,078 370,145-12.10% June 458,338 403,441-11.98% 2nd Q Total 1,285,653 1,128,354-12.23% July 465,487 411,332-11.63% August 473,858 412,002-13.05% September 398,219 337,851-15.16% 3rd Q Total 1,337,564 1,161,185-13.19% October 397,367 327,146-17.67% November 375,463 283,256-24.56% December 377,706 309,771-17.99% 4th Q Total 1,150,536 920,173-20.02% TOTALS 5,044,087 4,434,638-12.08% 932,507-23.87% ¹Per Landing Reports % change YTD

MONTHLY ENPLANED PASSENGERS PASSENGERS¹ Jan Month DIFFERENCE Feb January 200,334 195,981 149,813-23.56% Mar February 195,997 200,851 150,894-24.87% Apr March 240,880 221,875 170,497-23.16% May April 207,443 179,845 June May 209,557 183,861 July June 229,576 201,271 Aug July 232,164 205,791 Sept August 235,318 205,576 Oct September 202,311 172,607 Nov October 201,859 166,339 Dec November 188,434 141,456 December 183,595 148,563 TOTALS 2,527,468 2,224,016 471,204 140.43% ¹Per Landing Reports Monthly Enplaned Passengers 245,000 225,000 PASSENGERS 205,000 185,000 165,000 145,000 125,000 January February March April May June July August September October November December

MONTHLY DEPLANED PASSENGERS PASSENGERS¹ Month DIFFERENCE Jan January 195,544 189,631 146,014-23.00% Feb February 197,089 202,968 149,134-26.52% Mar March 240,490 213,620 166,155-22.22% Apr April 198,794 174,923 May May 211,521 186,284 June June 228,762 202,170 July July 233,323 205,541 Aug August 238,540 206,426 Sept September 195,908 165,244 Oct October 195,508 160,807 Nov November 187,635 141,800 Dec December 194,111 161,208 TOTALS 2,517,225 2,210,622 461,303 143.26% ¹Per Landing Reports - Scheduled and Charter Monthly Deplaned Passengers 245,000 225,000 PASSENGERS 205,000 185,000 165,000 145,000 125,000 January February March April May June July August September October November December

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 2007 73.10% 75.70% 81.80% 76.45% 77.46% 82.96% 80.80% 81.90% 75.80% 77.00% 71.10% 69.30% 2008 68.10% 75.06% 75.20% 72.51% 72.54% 79.51% 79.86% 79.13% 81.62% 76.59% 70.7% 69.70% 2009 71.02% 79.81% 80% ENPLANED PASSENGERS* LOAD FACTOR (%) DIFFERENCE Month (2009 / 2008) January 198,737 195,981 149,813 73.10 68.10 71.02 2.9 February 193,576 200,851 149,239 75.65 75.06 79.81 4.8 March 237,470 221,875 168,873 81.78 75.20 80.00 4.8 April 204,156 179,845 76.45 72.51 May 206,369 183,861 77.46 72.54 June 226,577 201,271 82.96 79.51 July 229,238 205,791 80.75 79.86 August 232,031 205,576 81.89 79.13 September 199,578 172,607 75.77 81.62 October 198,499 166,339 77.07 76.59 November 184,384 141,456 71.48 70.67 December 181,472 148,563 69.13 69.67 *** 2,492,087 2,224,016 467,925 76.96 75.04 76.94 4.2 * Per Landing Reports *** AVERAGE OF AIRLINE LOAD FACTORS

LOAD FACTOR BY AIRLINE Carrier Seats Available ***Enplaned Passengers 2009 Load Factor (%) 2008 Load Factor (%) Difference Alaska / Horizon 17,612 14,593 82.9% 79.5% 3.4 Allegiant 1,480 1,150 85.2% 81.2% 4.0 American* 19,020 13,025 67.3% 80.5% -13.2 Delta 5,931 5,653 95.3% 87.1% 8.2 Delta Connection 6,787 6,123 90.2% 89.0% 1.2 Southwest 147,574 91,667 62.1% 64.7% -2.6 United 33,302 24,987 75.0% 72.7% 2.3 US Airways 14,239 11,675 82.0% 73.9% 8.1 AVERAGE** 245,945 168,873 80.0% 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

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 2007 10,130 10,099 10,505 10,332 10,430 10,633 10,633 10,633 10,329 10,122 9,901 10,086 2008 10,064 10,256 10,153 9,768 9,433 9,645 9,645 9,645 8,804 8,682 8398 8,520 2009 8,209 8,381 8,634

TOTAL AIR CARRIER MARKET SHARE Carrier Passengers Alaska Air Group 29,011 8.62% Allegiant 2,348 0.70% American 25,932 7.70% Delta 10,974 3.26% Delta Connection* 12,010 3.57% Southwest 181,483 53.91% United 48,957 14.54% US Airways 23,201 6.89% Non-Scheduled 2,736 0.81% Totals 336,652 100.00% *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%

Jan TOTAL PASSENGERS DOMESTIC & INTERNATIONAL DOMESTIC SCHEDULED PASSENGERS Feb Mar Apr 540,000 May June July Aug Sept Oct Nov Dec PASSENGERS 490,000 440,000 390,000 340,000 290,000 240,000 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 1,661 0 0 295,827 1,661 4,509-63.2% February 297,201 2,827 0 0 300,028 2,827 4,217-33.0% March 333,916 2,736 0 0 336,652 2,736 6,202-55.9% April May June July August September October November December TOTALS 925,283 7,224 0 0 932,507 7,224 14,928-51.6% ¹Per Landing Reports

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 2007 2,462 2,239 2,534 2,468 2,520 2,544 2,628 2,644 2,449 2,489 2,408 2,533 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

MONTHLY AVAILABLE SEATS 340,000 320,000 300,000 280,000 260,000 240,000 220,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2007 306,097 277,791 314,406 306,129 308,027 307,152 318,384 319,833 295,522 300,765 280,121 292,630 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

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 8,985-11.59% February 10,322 10,420 7,498-28.04% March 13,933 10,948 8,686-20.66% 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 140,806 125,107 25,169-20.18% % change YTD

TOTAL CARGO Jan Feb Mar Apr May June July Aug Sept Oct Dec CARGO POUNDS (in millions) 15.00 14.00 13.00 12.00 11.00 10.00 9.00 8.00 7.00 6.00 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 3,980.5-21.86% February 10,313,441 9,786,730 7,675,284 3,480.9-21.57% March 11,129,070 9,519,983 8,237,243 3,735.7-13.47% 1st Quarter 31,736,431 30,538,593 24,689,574 11,197-19.15% 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 129,249,404 120,232,329 24,689,574 11,197.1-19.15% % change YTD