Mother Nature has been good to Bill and Hillary Clinton National Airport/Adams Field.
A mild winter was a boon to the bottom line of the state's largest airport, allowing it to take in nearly $1 million more in net income from operating and nonoperating revenue in the first three months of 2016 than it collected during the same period a year ago.
"Congratulations on a good first quarter," said Jim Dailey, chairman of the Little Rock Municipal Airport Commission's finance committee, which reviewed the financial results at its monthly meeting Friday.
Net income for the first quarter of this year came to $2,869,868, which was 49 percent, or $945,333, more than the airport netted in the first three months of 2015, according to the airport's latest statement of revenue and expenses.
Ron Mathieu, executive director at Clinton National, said thanks needed to go to Mother Nature.
"We've had a relative mild winter this year," he told the committee. "That meant fewer expenses for overtime, equipment and fuel."
Net income from operations in the first quarter totaled $2,800,149, 39 percent more than the same period in 2015. It also earned $69,719 in investment and interest income, or nonoperating revenue.
At the same time, expenses for the year's opening quarter declined 12 percent to $4,768,582 from $5,416,442 a year ago. Expenditures for salaries and expenses fell 15 percent to $2,508,083 from $2,936,185.
Mathieu said the vagaries of pay periods also was a factor in the financial results. In January 2015, airport employees had three pay periods; this year, they had the typical two pay periods, he said.
But the mild weather had the biggest effect.
Minimal snow and ice resulted in fewer flight cancellations. That was reflected in the aviation category, which includes landing fees and airline space rentals.
Aviation revenue climbed 9 percent to $2,594,630 in the first quarter of 2016 compared to $2,379,778 at the same time last year.
Aviation services, which include fuel commissions and sales, primarily for general aviation and business aircraft, also saw a jump, from $45,385 in the first three months of 2015 to $81,237 for the same period this year, a 79 percent increase.
At the same time, expenses fell because the airport didn't have to pay overtime or purchase extra fuel, both of which are required to keep runways open during a winter storm.
Spending on materials, supplies and maintenance dropped from $183,004 in the first quarter last year to $143,180 during the same period in 2016.
Other operating expenditures that include utilities fell 11 percent.
Overall adjusted net income for the period fell slightly from a year ago after accounting for cost reimbursements from the Federal Aviation Administration. In short, the airport in the past has used its yearly income to acquire land around the airport and now is seeking reimbursement for those purchases from the FAA.
Airport officials say they cannot predict when the FAA will make a reimbursement, but Mathieu said they have been working with FAA officials to make the payments come in smaller amounts spread over several months rather than receiving one large payment.
Metro on 04/16/2016