“The current conditions of aviation and the airline industry is reflected in our financial statements,” airport board chairman Martin J. Gerber said. “To counter the market conditions, we remained diligent in maintaining a low cost business model for our airline partners and worked to diversify and enhance our revenue streams.”
“We are very pleased with the final outcome of the 26 percent increase in net assets of $24.4 million for fiscal year 2009 as compared to the $18.7 million increase posted in 2008. We are cautiously optimistic for fiscal year 2010, and will take full advantage of opportunities to expand air services for passenger and cargo, especially with excess capacity in the global market, and proceed with infrastructure and facility improvements to increase the operational capacity of Guam’s airport.”
Operating under austerity measures, the airport’s total expenses declined from $29.7 million in fiscal year 2008 to $29.5 million in fiscal year 2009.
Most notable of these decreases were in the categories of material and supplies at $520,000 and bad debt expenses of $516,000.
Consistent with the 9.7 percent decline of in passenger activity, airport revenue declined nominally in fiscal year 2009, attributable to decrease in facilities and systems usage charges and concessions fees.
However, revenue was offset by increases in rental income and miscellaneous revenue.
Rental income increased by $235,000 and miscellaneous revenue increased by $1 million in fiscal year 2009.
As a result of management’s efforts to control costs and increase revenue, the airport closed FY 2009 with a debt service ratio of 1.33 which is above the 1.25 debt service requirements of the 2003 Bond Covenants.
Fiscal year 2009 was a challenging year for GIAA and its airline partners.
