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PENINSULA AIRPORT COMMISSION
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
5
Financial Operations Highlights
Net position decreased by $3.2 million in 2023 compared to a $1.8 million increase in 2022.
Operating income decreased by 9.54% from $5.9 million to $5.3 million due to decreases in enplanements
and overall traffic.
Operating expenses increased by 7.12% from $14.9 million to $16 million as a result of general inflation
increases in expenses and increases in general maintenance activities suspended during the COVID-19
slow down period.
The above factors resulted in a loss from operations of $1.6 million more than the 2022 results. This
decrease is largely due to the slower recovery of smaller airports from the COVID-19 pandemic than the
recovery noted by the nation’s larger airports.
Nonoperating income (expenses) increased by approximately $330 thousand from 2022, with a net
nonoperating gain of $4.6 million in 2023 compared to a net gain of $4.4 million in 2022. This increase in
nonoperating activity was primarily due to the American Recovery Plan Act Federal Grant reimbursements
and the sale of capital assets.
Capital contributions received in the form of grants from the federal government and the Commonwealth
of Virginia decreased by 57.22% from $6.6 million in 2022 to $2.8 million in 2023 due to the timing of
capital projects.
Capital projects that were completed or started in FY 2023 included $5.90 million on taxiway A and D
shoulders and lights, $257 thousand on maintenance equipment and vehicles, $949 thousand on terminal
equipment, $316 thousand for parking lot projects, and $1.41 million on general aviation airfield projects.
Summary of Operations and Changes in Net Position
2023
2022
Operating income
5,292,408
$
5,850,493
$
Operating expenses
16,036,458
14,970,178
Loss Before Other Nonoperating Income and Expenses
(10,744,050)
(9,119,685)
Other nonoperating income
4,694,179
4,364,568
Loss Before Capital Contributions
(6,049,871)
(4,755,117)
Capital contributions
2,819,985
6,591,638
Change in Net Position
(3,229,886)
$
1,836,521
$
Financial Position Summary
Net position may serve over time as a useful indicator of the Commission’s financial position. The Commission’s
assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $77.26 million
at June 30, 2023, a $3.26 million decrease from June 30, 2022.
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