Budget for Los Angeles airports approved
The Los Angeles City Airport Commission Monday approved a $2.46 billion budget for the city's four airports — the Los Angeles International, Ontario, Palmdale and Van Nuys facilities.
Close to $2 billion of the budget is tied up in reserve or special projects funds. The remaining $633 million, a 9.3 percent increase over last year, are allocated for operating costs at the four airports. The commission cited growing payroll, a reopening of the Palmdale airport and ongoing upgrades at LAX as primary reasons for the increase.
Revenues for the four airports are expected to rise 8.3 percent during the coming year to $691.4 million, with notable increases expected in parking and rental car revenue, advertising and airline fees.
LAX, the centerpiece of the city's airport quartet, will cost nearly $525 million to operate, with expected revenues from building leases, ticket and flight fees, concessions and other revenues adding up to more than $583 million.
Two current construction projects at LAX, one to improve baggage handling and the other to overhaul the main international terminal, dwarf the collective budgets of the four airports. The two LAX projects are expected to cost close to $1 billion in total.
LAX is the world's fifth-busiest passenger airport and ranks seventh worldwide in air cargo tonnage handled. Its air cargo system handles more than 2 million tons of goods. International freight, primarily from the Pacific Rim, makes up more than half of the airport's total air freight handled each year.