LOS ANGELES, March 2, 2005 (PRIMEZONE) -- Los Angeles World Airports (LAWA) today released audited financial results for fiscal year 2004 (12 months ending June 30, 2004).
LAWA's total net assets were approximately $2.3 billion as of June 30, 2004, representing an increase of $122.5 million, or 5.6 percent over June 30, 2003. 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), Ontario International (ONT), Van Nuys (VNY) and Palmdale Regional (PMD). LAWA receives no funds from the City General Fund.
LAWA's operating revenues increased more than 8 percent over FY 2003 to $546 million. LAWA derives its operating revenues from retail sales in the terminals (food, beverages, newspapers and gifts), parking receipts, airline landing fees, building rentals and other aviation-related sources.
In FY 2004, operating expenses before depreciation increased by 9.7 percent to $460 million, reflecting increased labor and security costs associated with running a major airport system safely and securely.
Cheryl K. Petersen, president of the Los Angeles Board of Airport Commissioners, said, "I am very pleased with the financial results for FY2004. Our goal is to keep LAWA on a strong financial footing as we prepare to implement the LAX Master Plan that was approved by the City Council in December 2004. Even factoring in our increased costs for security and improved service, we are operating profitably, producing net revenues of roughly $86 million. We use the net revenue to repay our bondholders and to reinvest in our core physical assets."
LAWA Executive Director Kim Day said, "We are very mindful that the airline industry continues to struggle for profitability. Because of that we continue to focus on running a tight financial ship, keeping our costs reasonable and our facilities in good operating condition."
LAWA's detailed financial results are available on the department's Internet website at www.lawa.org.