The comprehensive annual financial report of the Miami-Dade Aviation Department provided a financial analysis for the fiscal year that ended on September 30, 2018. The aviation department operates through the Miami-Dade County which owns the Miami International Airport (MIA), one training airport, and three general aviation airports. The different financial aspects of the aviation department showed that there was a general improvement in revenues, sales, and that most of the projects were progressing successfully.
Economic Conditions and Outlook
The economic conditions and outlook showed that MIA was a significant economic engine for the aviation department. MIA had a total financial impact of approximately $30.9 billion in terms of tourism, cruise operations, trade and commerce, and international banking. There was a total of 270,681 jobs generated directly and indirectly towards the South Florida economy. MIA was also a major transshipment point as it handled 81% of all air imports and 78% of all air exports between Latin America and the USA. The airport also ranked number one in international freight and third in international passenger traffic for the year 2017. In terms of trade, the airport was able to handle 94% of the states total air imports and exports and 40% of total air and sea trade with the world. The progress saw MIA become designated as a Foreign Trade Zone (FTZ) magnet site.
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Passenger Activity
Passenger activity saw a general increase compared to the fiscal year 2017 by 2.7%. There was a total of 44,948,486 passengers that had travelled through MIA. Domestic traffic had increased by 3.8% while international traffic had increased by 1.6%. This saw MIA become ranked third in the U.S. for international passengers. The largest carriers at the airport were American Airlines accounting for 60% of enplaned passengers and when put together with Envoy, its affiliate, accounted for 67% of enplaned passengers. The progressive growth saw Envoy become the second largest carrier at MIA while Delta Air Lines represented 6.0% of enplaned passenger traffic.
Cargo Activity
Cargo mail saw an increase of 5.4% which amounting to 2,368,616 tons of mail and freight. MIA remained the number one airport that handles international freight for the US. Cargo carriers represented 22.7% of landed weight and was an increase from the previous year which was 21.3%.
Airline Agreements
The County entered into the a separate but similar Airline Use Agreements (AUA) with the airlines which experiences in 2033. There were two major changes in the 2018 AUA. The first involved all fees associated with international arriving passengers that were charged under International Facility Fee. The second change involve the preferential gate assignment and usage that required airlines to meet operational qualifications.
Passenger Facility Charges (PFC)
The Federal Aviation Administration (FAA) authorized that the Aviation Department should impose a Passenger Facility Charge (PFC) of $3 per passenger starting from November 1, 1994. The PFC collections from its inception through September 30, 2018 was $1.35 billion.
Capital Projects
There were several capital projects undertaken by the aviation department. The Terminal Optimization Program (TOP) started with a budget of $651 but was increased to $1.4 billion in September 2017. The bigger Capital Improvement program had an approved budget of $1.9 billion and was made up of 52 capital projects. The Aviation Department issued $75.0 million in Aviation Revenue Bonds through the Trust Agreements.
Major Initiatives and Long-term Financial Planning
The Aviation Department has undertaken a major initiative to optimize and expand the functionality of existing terminal building assets. The initiatives of the Capital Improvement Program (CIP) that was completed in 2014 had not touched the Central Terminal and the Terminal Optimization Program (TOP) was created to modernize older terminal facilities.
In conclusion, the analysis of the financial aspects of the Miami-Dade Aviation Department showed consistent improvement. Larger prospects undertaken by the company had also experienced successful growth and progress.
