A.B. Won Pat International Airport Authority, Guam

Results of the FY2010 Financial Statements of the A. B. Won Pat International Airport Authority, Guam (GIAA) shows promising growth in revenue and successful efforts in towing the line in expenses.

Passenger activity was on the upswing throughout FY2010 with 1.46 million passengers passing through Guam Airport facilities. This number surpassed 2009 passenger activity levels of 1.3 million enplanements by 11.6%. In line with passenger activity, aircraft operations increased by 10.3% with 44,426 aircraft movements recorded in FY2010, compared to 40,276 posted in FY2009. These increases significantly impacted the Authority’s financial performance, generating noteworthy increases in facilities and use charges of 29.2% amounting to almost $5.2M more in operating revenue compared to FY2009. Facilities and Use charges make up 31% of the Authority’s combined operating and non operating revenue and capital grants.

Accounting for 19% of the Authority’s total revenue, concession fees collected in FY2010 increased by 7.3% to $13.89M over $12.94M posted in FY2009, notwithstanding the lingering effects of the global economic crisis. Gains in rental income which accounts for 13.1% of the Authority’s revenue was also posted. The Authority collected $9.42M in rental fees FY2010 compared to $9.3M in FY2009.

A marked decrease of 50% is noted in the receipt of $18M in federal grants in FY2010 as compared to $36M in federal funding received in FY2009. This is a result of the Airport’s aggressive completion of capital projects in property development, infrastructure upgrade and airport capacity building funded by aged federal grants. As grants from the US Government make up 25% of the Authority’s total income, GIAA’s total revenue for FY2010 fell by 14.7% from 2009.

A slight increase of 3.8% in GIAA’s total expenses was posted in FY2010, up from $60.2M in FY2009 to $62.5M in 2010.

Board Chairman Martin J. Gerber stated, “We are pleased with the performance of aircraft and passenger activity. Our air service initiatives along with GVB’s aggressive marketing helped n that regard and resulted in significant revenue in that budget category. Our stakeholders will be pleased to know that we met a healthy debt service coverage of 1.58 over the 1.25 requirement. We towed the line in regard to our expenses and still remain prudent in our daily operations and aggressive in pursuit of federal funding. Our outlook for FY2011 is to remain cautiously optimistic and committed to doing right for all of the Airport’s stakeholders, our signatory partners, our bondholders and especially the people of Guam. Our Board of Directors continues