COVID-19 Could Bring Big Drop in Revenues for Sarasota Bradenton International Airport

Sarasota Bradenton International Airport revenues could be down as much as 50 percent in the fiscal year starting Oct. 1 due to the COVID-19 pandemic.

But because the airport is debt-free, has nearly $20 million in reserves, and $17 million of CARES money, SRQ is poised to ride out the downturn better than most airports.

Passenger traffic came to a virtual standstill in April at airports across the country. SRQ received $23 million in federal money under the Coronavirus Aid, Relief and Economic Security, or CARES, Act earlier this year to help it through the economic downturn.

Members of the Sarasota Manatee Airport Authority got their first briefing on the proposed budget Monday, which projects a rare $1.3 million deficit on projected revenues of $15.2 million.

“To say this year is unique is a gross understatement. These are unparalleled times. The tremendous growth experienced in the prior two and one-half years came to a screeching halt in April as the COVID-19 pandemic hit,” said Rick Piccolo, airport CEO and president.

Prior to April, SRQ was leading the nation’s airports in the growth of passenger traffic.

Passenger traffic, which was down 95 percent in April, is now at 43 percent of what it would normally be, leading Piccolo to say that it is possible that improving business could help wipe out the budget deficit by the end of the next fiscal year. If not, the budget would be balanced using reserves and/or CARES money.

Non-airline revenue will be down $7.2 million, with the biggest hits coming from rental car business and parking fees, according to budget projections.

The airport expects to see an increase of $590,000 in airline revenue, due to airlines such as Allegiant and Frontier coming off a fee waiver incentive agreement used to bring them to SRQ. The low-fare airlines have led the way in passenger growth at SRQ, although all airlines experienced growth in the number of passengers flown.

Still, the picture would have been much worse if it weren’t for six strong business months prior to the arrival of the pandemic.

“We are in a very stable position versus our competitors,” Piccolo said. Even if the pandemic were to last an extended time, the airport would be in “tremendous shape.”

“I do wish to stress we believe these projections to be the worst-case scenario and results may be better should the industry rebound quicker, especially if a vaccine is approved and distributed in a robust manner. Despite these challenges our rate structure will be lower for our airline partners,” Piccolo said.

Piccolo plans to offer lower fees to all airlines serving SRQ, in recognition of their businesses challenges.

Despite the pandemic, Mark Stuckey, the airport’s executive vice president, said airlines serving SRQ continue to fly to 36 nonstop destinations.

Authority member Carlos Beruff said he is confident that the pandemic will pass, and that it is time to advance plans for expansion of the terminal.

Passenger traffic will return to its pre-pandemic pace. And the Bradenton-Sarasota area continues to experience rapid growth, Beruff said.

Piccolo said he will present plans for expansion of the terminal to the airport authority at their next meeting. He called the plans practical and innovative. The board is scheduled to approve its new budget at its next regular meeting on Sept. 28.

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