MEMPHIS, Tenn. (May 16, 2024) – The Memphis-Shelby County Airport Authority (MSCAA) Board of Commissioners voted Thursday to approve a balanced MSCAA budget for Fiscal Year 2025 (July 1, 2024 through June 30, 2025).
The $165.2 million Operations and Maintenance (O&M) budget sets the fees and charges that the airlines pay to the Airport Authority and establishes spending authority for MSCAA operations. This budget does not include capital development expenditures.
The MSCAA budget was previously presented to Memphis International Airport’s (MEM’s) Airline Airport Affairs Committee, which is comprised of representatives from MEM’s partner airlines and was approved by the Board’s Finance and Administration Committee. MSCAA is self-funded and receives no tax revenue from the City of Memphis or Shelby County.
For the upcoming fiscal year 2025, operating revenues are projected to be up by 15 percent compared to the previous year due primarily to an increase in terminal, landing, and passenger parking revenues.
In addition, MSCAA increased operating expenses, debt service, and capital outlay by seven percent. The increase in operating expenses for FY 2025 reflects the impacts of inflationary pressures, increased personnel expenses (wages, benefits, and new positions) and passenger parking system enhancements.
This budget increases terminal rates and charges to $114.63 average per square foot charge compared to $81.87 per square foot in FY 2024. Airline terminal rental fees are calculated by dividing the terminal’s net operating cost by the total rented space.
Landing fees increased to $2.2976 per 1,000 lbs. of landed weight compared to last year’s rate of $1.5509.
The respective increase in rates and charges also reflects the impact of the expiration of federal COVID stimulus funding like the American Rescue Plan Act (ARPA) and the Coronavirus Response and Relief Supplemental Appropriation Act (CRRSAA).
Highlights of the FY 2025 MSCAA budget:
- Total revenues/other sources: $165,227,000
- Total expenses, capital outlay, and debt service: $154,735,200
- Landing fees: $2.2976 /thousand lbs.
- Terminal square foot rate: $63
The Fiscal Year 2025 budget comes on the heels of a milestone 2023 for MEM, highlighted by a record number of 4.8 million origin and destination (O&D) passengers traveling through the airport. The 2023 passenger traffic represented an increase of more than 10 percent compared to 2022. MEM airlines increased seats in 2023 to more than 3.1 million compared to 2.6 million in 2022. In addition, 8.56 billion pounds of cargo was handled at MEM in 2023, maintaining its position as the second busiest cargo airport in the world.