On December 3, 2018, City Council approved Resolution 2018-136, which included an annual three percent (3%) increase in airline landing and terminal building fees for 2019 and each of the next two years thereafter.  As City Council prepares to adopt the 2021 budget, it's imperative we consider the economic distress much of the transportation industry is facing due to the Coronavirus. 

Airlines for America reports U.S. passenger volumes remain 75% below 2019 levels and anticipates the airline industry is unlikely to see a return to 2019 passenger volumes before 2022; resulting in a devastating impact on the airline industry and the concessions providers within the terminal building. 

In response to the economic challenges during the ongoing Coronavirus pandemic, it's recommended to defer the 2021 three percent (3%) increase in airline landing and terminal building fees for one year where the fee increase will be reinstated on January 1, 2022.  This change will have an approximate 0.7% impact on the airport's 2021 budget and will help airlines as well as car rental companies recover from historic low passenger activities. 

Additional information regarding the impacts of the Coronavirus can be located in the attached memo.