SOURCE: Los Angeles World Airports

January 03, 2007 13:31 ET

Los Angeles World Airports Posts Strong Financial Results for Fiscal Year 2006

LOS ANGELES, CA -- (MARKET WIRE) -- January 3, 2007 -- Los Angeles World Airports (LAWA) today released audited financial results for fiscal year 2006 (12 months ending June 30, 2006).

LAWA increased its total net assets by seven percent to $2.6 billion, an increase of $172.9 million over June 30, 2005. Net assets, the amount by which LAWA's total assets (which include its buildings, land equipment, cash investments and all receivables) exceed its total liabilities, serve as the key indicator of LAWA's strong financial position.

LAWA is a self-sustaining department of the City of Los Angeles and owns and operates four airports -- Los Angeles International (LAX), LA/Ontario International (ONT), Van Nuys (VNY) and LA/Palmdale Regional (PMD). LAWA receives no financial assistance from the City's General Fund.

In FY 2006, LAWA airports added approximately 300,000 passengers for a total count of 68.6 million, an increase of less than one percent over the prior fiscal year's passenger count. LAWA's total operating revenues grew more than eight percent over FY 2005 to $621 million. Both landing fees and building rental rates, principally at LAX, were the major drivers of revenue growth. However, increases in concessions, notably auto parking and rental cars, contributed nearly $10 million to these favorable results.

Operating expenses grew nearly 10 percent to $548 million, largely due to a four percent increase in full-time-equivalent staffing, which in turn fueled growth in salaries and retirement contributions. Salaries grew by $17.8 million (9.5 percent) and retirement contributions by $18.8 million (71 percent). A 10 percent increase in contractual services expense occurred as a result of increased security services and expanded information technology needs.

"Los Angeles World Airports has posted another solid year of financial results, with net assets continuing to grow," said Alan Rothenberg, president of the Los Angeles Board of Airport Commissioners. "Despite relatively flat growth in passengers, our operating revenues increased, including virtually all categories of retail concessions. While we remain focused on cost containment, the challenges of running such a large, complex and important business as our airports require us to invest meaningfully in staff and technology."

LAWA Executive Director Lydia Kennard said, "Fiscal year 2006 saw us invest $206 million into capital projects at our airports. We spent significant amounts on noise mitigation -- one of our most important priorities -- as well as improvements on the south runway at LAX and runway reconstruction at ONT."

Contact Information

    Nancy Suey Castles
    (310) 646-5260