Page 1 of 10 MEMORANDUM TO: All Commissioners FROM: Steve Busch, Vice President - Finance and Administration (612) 726-8148 SUBJECT: REPORT 1. Monthly and Year-to-Date Passenger Activity Report DATE: December 19, 2016 PASSENGER AND OPERATIONS SUMMARY In October 2016, revenue passengers at MSP increased 1.08% compared to the same month one year ago. Operations at MSP increased 2.62% in October 2016 compared to the same month last year. The future schedule outlook and airline overview are also included with the destinations served from MSP. MSP Passengers and Operations Summary October 2016 PASSENGERS Monthly Total Monthly Total Deplane Enplane 2016 2015 % change Y-T-D 2016 Y-T-D 2015 % change Major 1,181,838 1,202,993 2,384,831 2,358,879 1.10% 23,768,982 22,865,211 3.95% Regional 358,138 356,578 714,716 708,159 0.93% 7,007,903 7,134,348-1.77% Charter 147 356 503 3 16666.67% 4,665 4,289 8.8% TOTAL REVENUE PAX 1,540,123 1,559,927 3,100,050 3,067,041 1.08% 30,781,550 30,003,848 2.59% NON-REVENUE PAX 49,333 48,428 97,761 92,434 5.76% 979,252 919,604 6.49% GRAND TOTAL 1,589,456 1,608,355 3,197,811 3,159,475 1.21% 31,760,802 30,923,452 2.71% Monthly Total Monthly Total Deplane Enplane 2016 2015 % change Y-T-D 2016 Y-T-D 2015 % change Domestic Passengers 1,489,615 1,521,826 3,011,441 2,966,040 1.53% 29,277,183 28,630,453 2.26% International Passengers 99,841 86,529 186,370 193,435-3.65% 2,483,619 2,292,999 8.31% Total Passengers 1,589,456 1,608,355 3,197,811 3,159,475 1.21% 31,760,802 30,923,452 2.71% Monthly Total Monthly Total OPERATIONS Landing Departure 2016 2015 % change Y-T-D 2016 Y-T-D 2015 % change Major 9,138 9,122 18,260 17,857 2.26% 179,897 173,021 3.97% Regional Smaller than 70 seats 3,041 3,042 6,083 6,884-11.64% 63,302 69,136-8.44% Larger than 70 seat aircraft 3,700 3,700 7,400 6,234 18.70% 72,699 67,569 7.59% Total Regional 6,741 6,742 13,483 13,118 2.78% 136,001 136,705-0.51% Charter 1 2 3 1 200.00% 46 66-30.30% Air Freight 569 569 1,138 1,054 7.97% 11,152 10,413 7.10% General Aviation 868 868 1,736 1,802-3.66% 15,499 15,100 2.64% Other FAA Operations 111 111 222 156 42.31% 3,505 3,729-6.01% Military 63 63 126 88 43.18% 1,109 1,090 1.74% TOTAL 17,491 17,477 34,968 34,076 2.62% 347,209 340,124 2.08% Monthly Total Monthly Total Landing Departure 2016 2015 % change Y-T-D 2016 Y-T-D 2015 % change Domestic Operations 16,605 16,591 33,196 32,171 3.19% 325,386 324,834 0.17% International Operations 886 886 1,772 1,905-6.98% 21,823 15,290 42.73% Total Operations 17,491 17,477 34,968 34,076 2.62% 347,209 340,124 2.08%
Page 2 of 10 PASSENGER DETAILS Total passengers, year over year, increased 1.21% from October 2015 levels. MSP Total Passengers By Month 4,000 3,500 Passengers (in thousands) 3,000 2,500 2,000 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 2013 2014 2015 2016 October MSP Revenue Passengers 2016 Vs. 2015 Enplaned Passengers Thousands 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - Delta Affiliates Others 2015 1,622,635 619,884 824,519 2016 1,578,386 623,557 897,604
Page 3 of 10 Major Carriers - Passenger Change YTD (October) 2016 vs 2015 Passenger Change Over Prior Year Thousands 400 350 300 250 200 150 100 50 0-50 -100-150 Frontier Air France Great Lakes Air Choice One Boutique Air Condor Icelandair Alaska Airlines American/USAir United Sun Country Spirit Southwest Delta Regional Carriers - Passenger Change YTD (October) 2016 vs 2015 (Passenger Change Over Prior Year) Thousands 800 600 400 200 0-200 -400-600 -800 Endeavor Air (DL) Express Jet (DL) Express Jet (UA)) Envoy (AA) Shuttle America (DL) Jazz (AC) Shuttle America (UA) Sky West (UA) Mesa (AA) Air Wisconsin (AA) PSA (AA) Compass (DL) Go Jet (DL) Go Jet (UA) Air Georgian (AC) Mesa (UA) Republic (AA) Sky West (DL)
Page 4 of 10 FUTURE SCHEDULE OUTLOOK DEPARTURES & SEATS The following information, organized from Innovata, LLC schedule tables, summarizes the departures and seats scheduled for all airlines operating at MSP in the 1 st quarter of 2017. The second table identifies the schedule changes planned for Delta s larger airports. MSP total departures for the 1 st quarter of 2017 are scheduled to increase 0.89 percent, while seats are scheduled to increase 2.29 percent, when compared to the 1 st quarter of 2016. The largest increases in seats are scheduled to occur by Frontier, Icelandair, Sun Country, Southwest, and Spirit. MSP Total Summary (All Airlines) 1Q2016 1Q2017 % 1Q2016 1Q2017 % 1Q2016 1Q2017 % Airline (incl. Regional) Departures Departures Change Seats Seats Change Seats/Flt Seats/Flt Change Delta Air Lines 32,942 32,002-2.85% 3,667,033 3,625,018-1.15% 111.32 113.27 1.76% Sun Country Airlines 2,476 2,794 12.84% 378,396 426,240 12.64% 152.83 152.56-0.18% American Airlines 2,570 2,781 8.21% 350,220 370,069 5.67% 136.27 133.07-2.35% Southwest Airlines 1,978 2,216 12.03% 295,388 330,706 11.96% 149.34 149.24-0.07% United Airlines 2,305 2,244-2.65% 217,043 233,501 7.58% 94.16 104.06 10.51% Spirit Airlines 1,001 1,193 19.18% 178,178 203,976 14.48% 178.00 170.98-3.95% Frontier Airlines 252 258 2.38% 39,570 48,360 22.21% 157.02 187.44 19.37% Alaska Airlines 225 229 1.78% 35,652 31,230-12.40% 158.45 136.38-13.93% Air Canada 264 257-2.65% 13,350 12,850-3.75% 50.57 50.00-1.12% Icelandair 6 49 716.67% 1,098 8,967 716.67% 183.00 183.00 0.00% Air Choice One 375 #DIV/0! 3,000 #DIV/0! #DIV/0! 8.00 #DIV/0! Boutique Air 233 #DIV/0! 2,097 #DIV/0! #DIV/0! 9.00 #DIV/0! KLM Royal Dutch Airlines 2 #DIV/0! 514 #DIV/0! #DIV/0! 257.00 #DIV/0! Great Lakes 220-100.00% 1,980-100.00% 9.00 #DIV/0! #DIV/0! Total 44,239 44,633 0.89% 5,177,908 5,296,528 2.29% 117.04 118.67 1.39% Source: Innovata via Diio Mi - 12-08-2016 Delta s total departures, across all U.S. airports, are scheduled to decrease 0.61 percent when compared to the 1 st quarter of 2016. Delta s total seats are scheduled to increase 0.51 percent. Delta Air Lines Summary (Delta only activity) 1Q2016 1Q2017 % 1Q2016 1Q2017 % 1Q2016 1Q2017 % Origin Departures Departures Change Seats Seats Change Seats/Flt Seats/Flt Change Atlanta, GA, US 83,417 81,261-2.58% 11,298,128 11,271,366-0.24% 135.44 138.71 2.41% Minneapolis/St. Paul, MN, US 32,942 32,002-2.85% 3,667,033 3,625,018-1.15% 111.32 113.27 1.76% Detroit, MI, US 35,069 34,402-1.90% 3,582,457 3,583,678 0.03% 102.15 104.17 1.97% Salt Lake City, UT, US 20,207 20,520 1.55% 2,141,488 2,257,533 5.42% 105.98 110.02 3.81% New York-JFK, NY, US 16,500 17,403 5.47% 2,179,788 2,218,678 1.78% 132.11 127.49-3.50% New York-La Guardia, NY, US 20,757 20,163-2.86% 1,913,853 1,865,926-2.50% 92.20 92.54 0.37% Los Angeles, CA, US 13,539 13,809 1.99% 1,846,334 1,821,939-1.32% 136.37 131.94-3.25% Seattle, WA, US 9,725 10,276 5.67% 1,161,728 1,203,621 3.61% 119.46 117.13-1.95% Boston, MA, US 6,305 6,617 4.95% 754,140 797,823 5.79% 119.61 120.57 0.80% Cincinnati, OH/Covington, KY, US 5,771 5,625-2.53% 518,667 505,526-2.53% 89.87 89.87 0.00% Hub Totals 244,232 242,078-0.88% 29,063,616 29,151,108 0.30% 119.00 120.42 1.19% System Total: US Airports 429,568 426,944-0.61% 48,867,958 49,119,552 0.51% 113.76 115.05 1.13% Source: Innovata via Diio Mi - 12-08-2016
Page 5 of 10 AIRLINE OVERVIEW The year 2016 has become the tale of two half s. The first half, MSP experienced consistent seat and passenger growth, with total passengers growing by 3.57 percent fueled by seat growth of 4.53 percent, putting MSP on track to surpass our total passenger record of 37.6 million passengers in 2005. Passengers grew 4.30 percent in May, but have consistently tracked downward since. MSP is now on pace to finish 2016 below the total passenger record, despite continued seat growth of 4.31 percent for the second half of 2016. The culprit: load factors. MSP s load factors have tracked about two percentage points below the record load factor levels of 2015. Industry-wide load factors are also down in 2016 compared to 2015. The airlines simply added more seats than necessary in 2016, and are making adjustments going forward in the first half of 2017, with less seat growth planned than 2016. The greatest evidence that too many seats were added in 2016 is reflected by Delta s schedule for the 1 st quarter of 2017, where both operations and seats are will be down, 2.85 percent and 1.15 percent respectively. Delta has been experiencing declining revenue trends, an indication of too much capacity in the system, and is making adjustments to correct that trend. Delta s MSP growth for 2017 is expected to be modest, in the one percent range. Delta will add service to Marquette, MI (MQT) in the 1 st quarter for the first time since 2011. At this time, there have not been any other notable additions announced for MSP in 2017. On the other hand, most other MSP airlines have scheduled significant seat growth for the first quarter of 2017. Sun Country continues its steady growth pattern, headlined by service to Denver, CO (DEN), West Palm Beach, FL (PBI), and Harlingen, TX (HRL) that did not operate in the 1 st quarter of 2016. Service to Washington-Reagan, DC (DCA) is reduced to once-daily instead of twice-daily, as aircraft are allocated for warmer weather opportunities, but returns to twice-daily service in April. Southwest s growth is the result of new service to Baltimore, MD (BWI), more seasonal flying to Florida, and the addition of new seasonal service to Las Vegas, NV (LAS), for the first time in March. Spirit s growth is the result of converting summer-seasonal service to Atlanta, GA (ATL) to year-round, and they will also operate twice-daily to Fort Myers, FL (RSW) compared to oncedaily in 2016. Spirit is also operating 41 percent more seats to Orlando, FL (MCO) during the 1 st quarter. Speaking of Orlando, Frontier s growth is fueled completely by expansion in Orlando, where Frontier is exclusively operating 230-seat, A321 aircraft from MSP this winter. Icelandair will grow the most, operating year-round to Reykjavik (KEF) for the first time since 2008. One the EAS front, Boutique Air continues to operate successfully to Thief River Falls, MN (TVF). Boutique s service is generating record passenger numbers for the northwestern Minnesota community. Air Choice One service to Ironwood, MI (IWD); Fort Dodge, IA (FOD); and Mason City, IA (MCW) also continues to do well. Air Choice One is expected to be awarded new, four-year EAS contracts for Fort Dodge and Mason City in the near future.
Page 6 of 10 The following table summarizes new routes added that are being added in the 1 st quarter of 2017, and also summarizes the existing routes that have been terminated since the last report. NEW DESTINATIONS ADDED SUMMARY - 1Q2017 Year Round/ 1Q2017 1Q2017 1Q2017 Destination AIRLINE Seasonal Departures Seats Seats/Flt Tokyo-Haneda, JP Delta Year Round 90 26,190 291 West Palm Beach, FL, US Delta Seasonal 64 9,858 154 Marquette, MI, US Delta Seasonal 31 1,550 50 Harlingen, TX, US Sun Country Seasonal 39 6,102 156 West Palm Beach, FL, US Sun Country Seasonal 51 6,426 126 Las Vegas, NV, US Southwest Seasonal 23 3,833 167 DESTINATIONS SUBTRACTED SUMMARY - 1Q2017 Year Round/ 1Q2016 1Q2016 1Q2016 Destination AIRLINE Seasonal Departures Seats Seats/Flt Tokyo-Narita, JP Delta Year Round 91 21,636 238 Manzanillo, MX Delta Seasonal 12 1,512 126
Page 7 of 10 The following tables identify MSP s destinations, and the airlines providing service to each destination. MSP has nonstop service to 157 destinations, with 51 destinations being competitive destinations, with more than one airline serving the route. Destinations are sorted alphabetically by the airport code. MSP DESTINATIONS - 2017 INTERNATIONAL DESTINATION AIRPORT AIRLINE 1 Amsterdam, NL AMS Delta 2 Paris-De Gaulle, FR CDG Air France, Delta 3 Cancun, MX CUN Delta, Sun Country 4 Cozumel, MX CZM Delta, Sun Country 5 Frankfurt, DE FRA Condor 6 Grand Cayman Island, KY GCM Delta 7 Tokyo-Haneda, JP HND Delta 8 Huatulco, MX HUX Sun Country 9 Reykjavik, IS KEF Icelandair, Delta 10 London-Heathrow, EN, GB LHR Delta 11 Liberia, CR LIR Delta, Sun Country 12 Montego Bay, JM MBJ Delta, Sun Country 13 Mazatlan, MX MZT Delta, Sun Country 14 Nassau, BS NAS Delta, Sun Country 15 Punta Cana, DO PUJ Delta, Sun Country 16 Puerto Vallarta, MX PVR Delta, Sun Country 17 San Jose Cabo, MX SJD Delta, Sun Country 18 St. Maarten, SX SXM Delta, Sun Country 19 Edmonton, AB, CA YEG Delta 20 Montreal-PET, QC, CA YUL Delta 21 Vancouver, BC, CA YVR Delta 22 Winnipeg, MB, CA YWG Delta 23 Saskatoon, SK, CA YXE Delta 24 Calgary, AB, CA YYC Delta 25 Toronto, ON, CA YYZ Air Canada, Delta 26 Ixtapa/Zihuatanejo, MX ZIH Delta, Sun Country 27 Manzanillo, MX ZLO Sun Country SUMMARY DESTINATIONS AIRLINE 2016 2017 Air Canada 1 1 Air France 1 1 Condor 1 1 Delta 26 24 (less Rome & Manzanillo) Icelandair 1 1 Sun Country 13 13 Total 43 41
Page 8 of 10 DOMESTIC DESTINATION AIRPORT AIRLINE 1 Albuquerque, NM, US ABQ Delta 2 Aberdeen, SD, US ABR Delta 3 Albany, NY, US ALB Delta 4 Anchorage, AK, US ANC Delta, Sun Country 5 Aspen, CO, US ASE Delta 6 Atlanta, GA, US ATL Delta, Southwest, Spirit 7 Appleton, WI, US ATW Delta 8 Austin, TX, US AUS Delta 9 Kalamazoo/Battle Creek, MI, US AZO Delta 10 Hartford, CT, US BDL Delta 11 Billings, MT, US BIL Delta 12 Bismarck, ND, US BIS Delta 13 Bemidji, MN, US BJI Delta 14 Bloomington/Normal, IL, US BMI Delta 15 Nashville, TN, US BNA Delta 16 Boise, ID, US BOI Delta 17 Boston, MA, US BOS Delta, Sun Country 18 Brainerd, MN, US BRD Delta 19 Buffalo, NY, US BUF Delta 20 Baltimore, MD, US BWI Delta, Spirit, Southwest 21 Bozeman, MT, US BZN Delta 22 Cedar Rapids, IA, US CID Delta 23 Cleveland, OH, US CLE Delta 24 Charlotte-Douglas, NC, US CLT Delta, American 25 Columbus, OH, US CMH Delta 26 Cincinnati, OH/Covington, KY, US CVG Delta 27 Wausau, WI, US CWA Delta 28 Dayton, OH, US DAY Delta 29 Washington-National, DC, US DCA Delta, Sun Country, American 30 Denver, CO, US DEN Delta, Frontier, Southwest, Spirit, United, Sun Country 31 Dallas/Fort Worth, TX, US DFW American, Delta, Spirit, Sun Country 32 Duluth, MN, US DLH Delta 33 Des Moines, IA, US DSM Delta 34 Detroit, MI, US DTW Delta, Spirit 35 Newark, NJ, US EWR Delta, United 36 Fairbanks, AK, US FAI Delta 37 Fargo, ND, US FAR Delta 38 Kalispell-Glacier, MT, US FCA Delta 39 Fort Lauderdale, FL, US FLL Delta, Spirit 40 Fort Dodge, IA, US FOD Air Choice One 41 Flint, MI, US FNT Delta 42 Sioux Falls, SD, US FSD Delta 43 Fort Wayne, IN, US FWA Delta 44 Spokane, WA, US GEG Delta 45 Grand Forks, ND, US GFK Delta 46 Gulfport/Biloxi, MS GPT Sun Country 47 Green Bay, WI, US GRB Delta 48 Grand Rapids, MI, US GRR Delta 49 Great Falls, MT, US GTF Delta 50 Steamboat Springs/Hayden, CO, US HDN Delta
Page 9 of 10 DOMESTIC DESTINATION AIRPORT AIRLINE 51 Hibbing/Chisholm, MN, US HIB Delta 52 Helena, MT, US HLN Delta 53 Honolulu/Oahu, HI, US HNL Delta 54 Harlingen, TX, US HRL Delta, Sun Country 55 Washington-Dulles, VA, US IAD Delta, United 56 Houston-Intercontinental, TX, US IAH Delta, Spirit, United 57 Wichita, KS, US ICT Delta 58 Idaho Falls, ID, US IDA Delta 59 Iron Mountain/Kingsfd, MI, US IMT Delta 60 Indianapolis, IN, US IND Delta 61 International Falls, MN, US INL Delta 62 Williston, ND, US ISN Delta 63 Ironwood, MI, US IWD Air Choice One 64 Jackson Hole, WY, US JAC Delta 65 Jacksonville, FL, US JAX Delta 66 New York-JFK, NY, US JFK Delta, Sun Country 67 Lansing, MI, US LAN Delta 68 Las Vegas, NV, US LAS Delta, Spirit, Sun Country, Southwest 69 Los Angeles, CA, US LAX Delta, Spirit, Sun Country, United, American 70 Lexington, KY, US LEX Delta 71 New York-La Guardia, NY, US LGA Delta, American 72 Lincoln, NE, US LNK Delta 73 La Crosse, WI, US LSE Delta 74 Saginaw/Midland/Bay C., MI, US MBS Delta 75 Kansas City, MO, US MCI Delta, Southwest 76 Orlando, FL, US MCO Delta, Spirit, Sun Country, Frontier 77 Mason City, IA, US MCW Air Choice One 78 Chicago-Midway, IL, US MDW Delta, Southwest 79 Memphis, TN, US MEM Delta 80 Miami, FL, US MIA American, Delta, Sun Country 81 Milwaukee, WI, US MKE Delta, Southwest 82 Moline, IL, US MLI Delta 83 Minot, ND, US MOT Delta 84 Marquette, MI, US MQT Delta 85 Madison, WI, US MSN Delta 86 Missoula, MT, US MSO Delta 87 New Orleans, LA, US MSY Delta 88 Oklahoma City, OK, US OKC Delta 89 Omaha, NE, US OMA Delta 90 Chicago-O'Hare, IL, US ORD American, Delta, Spirit, United 91 Norfolk, VA, US ORF Delta 92 Portland, OR, US PDX Delta, Alaska, Sun Country 93 Philadelphia, PA, US PHL Delta, American, Spirit 94 Phoenix, AZ, US PHX Delta, American, Southwest, Spirit, Sun Country 95 Peoria, IL, US PIA Delta 96 Pittsburgh, PA, US PIT Delta 97 Pellston, MI, US PLN Delta 98 West Palm Beach, FL, US PBI Delta,Sun Country 99 Pasco, WA, US PSC Delta 100 Palm Springs, CA, US PSP Delta, Sun Country
Page 10 of 10 DOMESTIC DESTINATION AIRPORT AIRLINE 101 Rapid City, SD, US RAP Delta 102 Raleigh/Durham, NC, US RDU Delta 103 Rhinelander, WI, US RHI Delta 104 Richmond, VA, US RIC Delta 105 Reno, NV, US RNO Delta 106 Rochester, NY, US ROC Delta 107 Rochester, MN, US RST Delta 108 Fort Myers, FL, US RSW Delta, Spirit, Sun Country 109 San Diego, CA, US SAN Delta, Sun Country 110 San Antonio, TX, US SAT Delta 111 Savannah, GA, US SAV Delta, Sun Country 112 South Bend, IN, US SBN Delta 113 Louisville, KY, US SDF Delta 114 Seattle, WA, US SEA Alaska, Delta, Sun Country 115 San Francisco, CA, US SFO Delta, Sun Country, United 116 San Jose, CA, US SJC Delta 117 San Juan, PR, US SJU Delta, Sun Country 118 Salt Lake City, UT, US SLC Delta 119 Sacramento, CA, US SMF Delta 120 Orange County, CA, US SNA Delta 121 St. Louis, MO, US STL Delta, Southwest 122 St. Thomas, VI, US STT Sun Country 123 Syracuse, NY, US SYR Delta 124 Tampa, FL, US TPA Delta, Spirit, Sun Country 125 Tulsa, OK, US TUL Delta 126 Tucson, AZ, US TUS Delta 127 Traverse City, MI, US TVC Delta 128 Thief River Falls, MN, US TVF Boutique Air 129 Knoxville, TN, US TYS Delta 130 Fayetteville/Springd., AR, US XNA Delta SUMMARY DESTINATIONS AIRLINE 2016 2017 Air Choice One 3 3 Alaska 2 2 American 9 9 Boutique Air 1 1 Delta 123 124 (Marquette) Frontier 2 2 Great Lakes 3 0 (Less Watertown, Huron, Thief River Falls) Southwest 8 9 (Las Vegas) Spirit 16 16 Sun Country 24 24 United 7 7 Total 198 197