Port of Seattle Air Cargo Update

Tom Green, C.M. Sr. Manager, Air Cargo Operations & Development Seattle-Tacoma International Airport October 11, 2017

1 SEA-TAC AIRPORT FAST FACTS AIR CARGO • Ranked 20th in air cargo volume in North America • 366,500 metric tons of total cargo in 2016 • 3rd largest airport for international cargo on the West Coast (excludes Alaska). • 28 airlines provide daily, non-stop service to 88 domestic and 24 international destinations. • 12 international destinations are serviced with schedule all-cargo main deck or wide-body carrier services. A Growing & Competitive Market

Market Share by Airline

Alaska - 49.5% Non-stop Destinations Delta - 20.6% Domestic 88 Southwest - 7.7% International 24 United - 6.2% American - 6.1% All Others - 9.9%

Leading Natl. & Intl. Gateway Recently Added Airlines AeroMexico Norwegian

Thomas Cook Xiamen Spirit Leading Natl. & Intl. Gateway Recently Added Airlines

• New Freighter Services in 2016 – Cargo / April 1 / Boeing 777F to MD11 / / 2 flights weekly – Prime Air / May 10 / Boeing 767F / 3x daily domestic flights – DHL / May 28 / Boeing 767F & 757F / 4 flights daily (20 flights weekly) – AirBridgeCargo Airlines / Sept 17 / -8F / & / 2x weekly – now on-call service

Leading Natl. & Intl. Gateway Historic Air Cargo at Sea-Tac

6 2016 & 2017 YTD Review

7 2015 2016 2016 YTD 2017

Total Air Cargo 332,636 100% 366,429 100% +10% +21%

Air Mail FedEx 33,916 34,334 +1% -13% 5,333 9,104 +71% +67% Delta Airlines 6,551 5,519 6,516 5,313 2,081 2,428 Other airlines 869 628 Total Air Mail 55,266 17% 57,326 16% +4% +5%

Total Air Freight 277,370 83% 309,103 84% +11% +24%

Belly Freight Delta Airlines 33,213 29,866 -10% +5% Alaska Airlines 27,540 25,417 -8% -7% Hainan 7,221 8,888 +23% +40% 8,226 8,617 +5% +4% EVA 7,220 8,583 +19% +81% ANA 9,384 7,167 -24% +21% Other airlines 33,697 34,559 Total Belly Freight 126,501 38% 123,097 34% -3% +13%

Freighter Freight Freight on Combination Airline Freighters Korean Airlines 11,458 7,433 3,651 5,207 Alaska Airlines 3,300 2,728 Aerologic/ - 1,362 EVA Air 1,003 1,027 Other airlines 85 46 Total 'Allied' Freight 19,497 6% 17,803 5% -9% -8%

Express/Integrated Freight/Own-Network FedEx & Empire 102,603 103,114 +1% +4% DHL - 21,899 n/a +175% Diverted BFI Freight 361 113 Prime Air - 12,522 n/a +270% Total Express/Integrated Freight 102,964 31% 137,648 38% +34% +42%

"Discretionary" Freighters 12,297 13,143 11,742 9,139 AirBridgeCargo - 477 Other airlines 4,369 7,799 +79% +62% Total Discretionary Freighters 28,408 9% 30,558 8% +8% +22% TOP AIR CARGO EXPORTS THROUGH SEA-TAC TOP AIR CARGO IMPORTS THROUGH SEA-TAC 2015 2016

Total Air Cargo1 332,636 100% 100% 366,429 100% 100%

Air Mail 55,266 17% 17% 57,326 16% 16%

International Freight Exports Cherries 12,706 4% 19,424 5% Seafood 9,126 3% 10,032 3% Footwear Parts 3,375 1% 3,779 1% Aerospace Components 3,558 1% 3,420 1% Aluminum Alloy & Graphite 4,742 1% 1,228 0.3% Other exports 28,869 9% 25,037 7% Total Exports 62,376 19% 62,920 17%

Imports Industrial Machinery 12,792 4% 11,044 3% Consumer Electronics 12,488 4% 10,971 3% Aerospace Components 5,736 2% 5,931 2% Apparel 5,629 2% 4,972 1% Medical Equipment 2,952 1% 2,560 1% Other imports 13,384 4% 15,952 4% Total Imports 52,981 16% 51,430 14%

Total International Freight 115,357 35% 114,350 31%

Domestic Freight Outbound Small package/Express 45,817 14% 60,043 16% Unknown commodities 30,606 9% 30,163 8% Total Domestic Outbound 76,423 23% 90,206 25%

Inbound Small package/Express 57,068 17% 77,506 21% Unknown commodities 28,522 9% 27,042 7% Total Domestic Inbound 85,590 26% 104,548 29%

Total Domestic Freight 162,013 49% 194,754 53% Questions Sea-Tac Air Cargo Gateway