ORLANDO, FL. – The Greater Orlando Aviation Authority (GOAA) Board considered several fiscal issues at its August meeting today. With passenger traffic increasing at Orlando International Airport, next year’s budget reflects how the increase in travel activity, enduring surge in inflation and a full year operation of new Terminal C are impacting the Authority’s financial outlook.
The Board reviewed and approved the preliminary 2022-2023 Fiscal Year Budget for Orlando International Airport (MCO) and Orlando Executive Airport (ORL). The MCO budget for the coming fiscal year is $683,585,000, which is a $105.2 million increase in revenue over last year’s budget. The budget for ORL is $4,765,000.
“Just about every sector of this budget has been affected by current economic forces and the opening of Terminal C,” said Kathleen Sharman, Greater Orlando Aviation Authority Chief Financial Officer. “With passenger traffic returning to 2019 levels, revenues are projected to rise, but so are expenditures like maintenance and personnel.”
MCO budget highlights include:
- $50.3M increase in Ground Transportation revenue (including $26.7M in parking revenue)
- $29.0M increase in Terminal Premises revenue
- $19.4M increase in Baggage revenue
- $12.0M increase in Hotel revenue
- $18.2M increase in Salaries & Benefits expenses
- $10.0M increase in Janitorial Services expenses
- Cost Per Enplaned passenger (CPE) increase from $9.25 to $10.68 for participating airlines
- Landing Fee increase from $1.63 to $1.97 per 1,000 lbs.
- Terminal Premises rate increase from $167.50 to $193.21 per square foot
Following Board approval, the preliminary budget will be sent to the Orlando City Council for discussion at a public hearing before returning to the GOAA Board for final approval.
Parking Rate Structure Revised
The Aviation Authority last adjusted its public parking fee structure in 2017. Since then, passenger traffic has increased dramatically along with operational and maintenance costs. Following two public hearings presented by GOAA parking operations staff, the Board approved a revised rate structure that will phase in over the next two years.
Fee structure effective October 1, 2022
- Garage C — $19.00 a day
Fee structure effective October 1, 2023
- Garages A, B & C — $21.00 a day
- Economy Lots — $12.00 a day
- Valet — $27.00 a day
The adopted rate structure is expected to increase annual parking revenue by $260,000 starting October 2022 and $2,800,000 starting October 2023.
MCO rates were compared to airport parking rates in Miami, Tampa, Atlanta and public parking facilities in Central Florida and were found to be comparable.
Strategic Plan Moves Forward
At its July meeting, the Aviation Authority Board reviewed an outline to update the 2013 Strategic Plan as well as the process and timeline for completion. Today, the Board moved the process forward by approving an agreement with Ricondo & Associates, Inc. to provide Strategic Planning Services.
Significant coordination among the Authority, airport stakeholders and the community is expected, so a three-phase workshop approach will be used to develop the Strategic Plan update.
Phase 1 – Identifying the mission, vision, and values shaping the Strategic Plan update. Conducting an
internal review, followed by an external review.
Phase 2 – Facilitation of outreach to internal and external stakeholders, followed by a review of feedback.
Phase 3 – Goal and strategy formulation.
The results of these activities will be used to develop an implementation framework, as well as a process for tracking, monitoring, and updating initiatives. The resulting Strategic Plan will then be reviewed by the Aviation Authority prior to adoption.