HIGHFILL -- The finance committee at Northwest Arkansas National Airport agreed Wednesday to send a conservative and defensive 2021 budget to the full board of directors.
The budget foresees about $11.9 million in revenue and $11.9 million in expenses, not including non-operating items and capital expenses.
The budget reflects passenger enplanements and income being off for some time. Enplanements have been off by about 60% at XNA, year-to-date.
The budget reflects XNA officials' efforts to help their airlines survive. Airline payments were deferred for three months in 2020 and will be repaid later.
"We're keenly aware of lack of routes and services that are no longer being offered here and we want to make sure we're in a position when they look at putting back a critical aircraft at an airport, they will look at us with a very favorable eye," said Kelly Johnson, chief operating officer at the airport. "That said, they're going to have a short memory but, right now, cash is king and they're going to look at bringing back service and frequency for those airports they feel are making a really good faith effort to try to keep them as financially healthy as they can."
Rates and charges to airlines will be held at 2020 levels for at least several months so officials can see what a covid-19 pandemic recovery might look like. The move should allow XNA to keep its cost per passenger enplanement at about $13.47 and stay competitive with other airports. The cost per enplanement has been in the $7 range in recent years.
"It's not really a subsidy, but we're forgoing about $2 million in revenue from the first six months of this year just to remain competitive with the peer airports we could potentially lose customers to or may lose service to," said Aaron Burkes, CEO. "We spent a tremendous amount of time and effort and money and energy and everything trying to recruit and retain the service we have and I think this is a big forgone revenue cost, but it's one of the most important things we can do."
Airport officials hope to see more federal money next year. XNA received more than $8 million this year that helped offset revenue losses of up to $10 million.
A skybridge project linking the parking deck to the second floor of the terminal and adding new elevators and escalators is expected to have design completed and be sent out for bids in the first quarter or second of 2021. Officials will decide then whether to proceed with construction based on the bids. Other capital projects are on hold.
Ron Wood can be reached by email at [email protected] or on Twitter @NWARDW.