Piedmont Airport Confronts Austere Budget as Revenues Nosedive

GUILFORD COUNTY — The economic aftermath of the coronavirus pandemic has grounded, for now, many of the plans and ambitions of the Piedmont Triad Airport Authority.

One sign of how the aviation industry is suffering: The airport is up to about 900 passengers a day compared to 75 a day in the first weeks after the pandemic started, PTIA Executive Director Kevin Baker said. But the increase to 900 passengers still leaves PTIA at about 25% of its normal daily passenger traffic three months into the crisis.

“It’s bad,” Baker said.

The governing board of Piedmont Triad International Airport confronts a stark revenue outlook for its new fiscal year starting July 1. The goal of the authority is to limit, if not completely prevent, resulting budget cutbacks from affecting quality of airport service to travelers, Baker told The Enterprise.

Here’s a sobering snapshot of what the authority faces:

• Total revenues are expected to decrease 34% during the coming fiscal year.

• Passenger boardings are projected to decrease 49%, with revenue generated through the terminal expected to decrease 12%.

• Parking revenue is expected to fall 48%.

• Landing fees from airlines are projected to decline 21%.

The fiscal lifeline for the airport centers on the federal CARES Act, the COVID-19 relief bill passed by Congress and signed by President Donald Trump earlier this spring. The CARES Act provides $16.4 million for the airport and provides flexibility on how the authority can spend it, Baker told The High Point Enterprise.

“The airport, going into this (pandemic), was in a strong financial position. But the CARES Act funding now is absolutely critical. We see it as carrying us through this fiscal year,” he said.

Still, even with the federal relief, the airport faces a daunting outlook.

The operating revenue received by the airport authority comes from rentals and fees for the use of airport facilities and services. Operating revenue makes up more than 80% of the total annual revenue for PTIA.

For the coming fiscal year, operating revenue is expected to total $21.6 million, down 29% from the $30.6 million for the current fiscal year. Total revenues are projected at $26.1 million, down 34% from the $39.5 million for the present fiscal year.

Other sources of revenue for PTIA include federal grants, interest on investments and facility charges to passengers and other airport customers.

Airport leaders have made tough choices because of plummeting revenues. PTIA employees won’t receive pay raises, and vacant positions aren’t being filled. But full-time employees are being kept, Baker said.

The authority intends to cut what airport officials call “controllable expenses” by nearly 6%. The expenses include office equipment, maintenance contracts and other supplies. Professional services, such as marketing and public relations, will be cut nearly 7%.

And the airport has stopped all major capital projects that weren’t already funded by another government entity.

“Needless to say, it’s a tough situation,” Baker said.

[email protected] | 336-888-3528 | @HPEpaul

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