Inter-Office Memo Reno-Tahoe Airport Authority

Date: May 8, 2008 To: Statistics Recipients From: Tom Medland, Director Air Service Business Development Subject: RENO-TAHOE INTERNATIONAL AIRPORT MARCH 2008 PASSENGER STATISTICS

SUMMARY

Total passengers at RNO for the month of March 2008 declined 9.5% as compared to March 2007. Year-to-date, 1.2 million total passengers flew in and out of RNO representing a 3.6% decline versus first quarter 2007. Airlines at RNO reported a 75% load factor for the month versus 81% in March 2007. Domestic charter passengers declined for the first time this year with Allegiant (Harrah’s charter program) reporting a total of 6,202 passengers and a 4% decrease compared to March 2007. Several factors have contributed to a poor March 2008 performance. Although RNO daily departures were up to 87 flights per day, an increase of 5 daily departures compared to March 2007, total passengers declined almost 46,000 passengers as a result of 2008 being a non- bowling year (20,000 fewer), Hearth, Patio and Barbeque exposition (13,000 attendees) not in Reno in 2008, and March Ski and Spring Break traffic being soft due to poor snow conditions which averaged only 25% of the average March snowfall.

The month of March also saw a decline in air cargo of 14.5%. A total 9,519,983 pounds, or 4,317.5 metric tons, of air cargo was handled during the month of March. A slowing economy, high fuel costs, a regional business shift to ground transportation and a shift away from premium products being shipped via air has resulted in a significant decrease in total air cargo for the month. Year-to-date air cargo declined 3.7% versus first quarter 2007.

TOTAL PASSENGERS

During the month of March, 435,495 passengers flew through RNO, 9.53% fewer than the same period last year. The decrease in March traffic is attributed to the continuing soft economy and economic downturn as well as a significant drop in convention demand. Convention business declined in March due to the absence of Hearth, Patio & Barbeque and 2008 being a non-bowling year. Spring break and ski traffic was soft due to a less- than-average (25% of average) March snowfall. Additionally, several airlines cancelled an unusually high number of flights to and from RNO (AA-6, UA-2, and WN-2) during the month of March. Year-to-date RNO traffic dipped 3.6% to 1,224,926 total passengers compared to first quarter 2007.

TOTAL CARGO

The total 9,519,983 pounds, or 4,317.5 metric tons, handled during the month of March represents a 14.46% decrease compared to the same month one year earlier. This decrease is due to the slowing economy and increased fuel costs. RNO air cargo carriers reported that due to the softening economy regional businesses are utilizing more trucking services and accepting lengthier delivery times to save money. In addition, air cargo carriers reported a record 11 million pounds of freight in March last year which created an exceptionally high base month. DHL is the single cargo carrier to show a positive increase of one percent in freight due to networking changes (shifting cargo volume from FedEx to DHL). Year-to-date first quarter 2008 air cargo dipped 3.77% for a total of 30,538,593 pounds.

AIRLINE LOAD FACTORS

RNO airlines reported an average 75.2% load factor for the month of March compared to an 81% load factor in 2007. The March load factor was negatively impacted by RNO’s two newest carriers Allegiant and ExpressJet who reported exceptionally low load factors of 62% and 60% respectively. In addition, Southwest reported a load factor which was 10 points lower than their March 2007 load factor and 12 points lower than their system load factor. Southwest attributed their load factor to the soft economy, higher fares, a non- bowling conference season, and a poor March ski month.

Airline Reno LF System LF Difference * 85.3% 81.9% 3.4 Delta 87.6% 84.5% 3.1 Allegiant 61.9% 90.8% -28.9 American 89.0% 85.0% 4.0 Alaska 82.3% 80.8% 1.5 Continental 82.4% 82.6% -0.2 US Airways 72.4% 84.5% -12.1 United 76.4% 82.7% -6.3 Southwest 64.1% 76.5% -12.4 Aloha** 65.4% n/a n/a ExpressJet 60.5% 72.5% -12.0

*Delta Connection Inc. carrier includes Skywest and ExpressJet **Aloha System LF not available

AIRLINE MARKET SHARE

Southwest Airlines maintains the largest market share of 46.8% of RNO’s market. and follow in sequence holding 12.8% and 8.9% market share respectively. The market share redistribution among RNO’s airline’s are a result of increased frequency to Los Angeles with Delta Connection flights, Alaska / providing additional Seattle service and the addition of six new destinations (Bellingham, Spokane, Tucson, LA/Ontario, Long Beach and San Diego) and two new air carriers ( and ExpressJet).

Airline MAR. 2008 MAR. 2007 Change Alaska 8.90% 8.03% 0.87 Allegiant 0.59% n/a n/a Aloha 1.20% 1.03% 0.17 American 7.86% 7.31% 0.55 Continental 3.74% 3.43% 0.31 Delta 5.26% 5.49% -0.23 Delta Connection 2.44% 1.26% 1.18 Express Jet 2.12% n/a n/a Southwest 46.78% 47.39% -0.61 United 12.78% 13.47% -0.69 US Airways 6.91% 9.01% -2.10 Non-Scheduled 1.42% 1.35% 0.07

*Delta Connection Inc. carriers **Annual comparison not available

DOMESTIC AND INTERNATIONAL CHARTER PASSENGERS

During the month of March, Allegiant (Harrah’s charter program) reported 6,202 charter passengers flying in and out of RNO, 4.2% less than one year earlier. Harrah’s explained this reduction in passengers as a reflection of the competition among other Harrah’s properties for the same clientele resulting in passenger shifts to other Harrah’s destinations amplified by poor ski conditions in Reno-Tahoe. Year-to-date charter passenger traffic reflects an 8.8% increase.

SCHEDULED DEPARTURES AND SEATS

Monthly scheduled departures increased 2.4% totaling 2,598 departures in the month of March, sixty-four (64) more monthly departures than one year earlier. Monthly seats in March decreased 2% to 307,910 monthly available seats. The reduction in seats is attributable to the percentage increase of regional jet (RJ) aircraft at RNO from 19% to 28.7% year-over-year.

TOTAL OPERATIONS

Total airport operations consisting of air carrier arrivals and departures, air taxi flights, general aviation landings and take-offs, and military aircraft operations decreased by 21.4% in the month of March compared to one year earlier. Significant reductions in military and general aviation operations, impacted by high fuel costs, contributed to the decrease in total airport operations for the month. The commercial air carrier segment increased 13.3% year-over-year.

KTB TOTAL PASSENGERS MARCH 2008

Jan

Feb 490,000

Mar

Apr May 470,000 June

July

Aug 450,000 Sept

Oct

Nov

Dec 430,000

410,000 PASSENGERS

390,000

370,000

350,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2006 2007 2008

PASSENGERS¹ PASSENGERS¹ Month 2006 2007Percent Change 2008 Percent Change January 409,643 395,878 -3.36% 385,612 -2.59% February 401,220 393,086 -2.03% 403,819 2.73% March 465,381 481,370 3.44% 435,495 -9.53% 1st Q Total 1,276,244 1,270,334 -0.46% 1,224,926 -3.57% April 410,562 406,237 -1.05% May 409,498 421,078 2.83% June 445,018 458,338 2.99% 2nd Q Total 1,265,078 1,285,653 1.63% July 466,271 465,487 -0.17% August 452,866 473,858 4.64% September 399,922 398,219 -0.43% 3rd Q Total 1,319,059 1,337,564 1.40% October 383,099 397,367 3.72% November 361,711 375,463 3.80% December 395,472 377,583 -4.52% 4th Q Total 1,140,282 1,150,413 0.89% TOTALS 5,000,663 5,043,964 0.87% 1,224,926 -3.57%

¹Per Landing Reports % change YTD

Reno-Tahoe International Airport TOTAL CARGO MARCH 2008

Jan Feb 15.00 Mar Apr 14.00 May 13.00 June July 12.00 Aug Sept 11.00 Oct 10.00 Dec 9.00

8.00

CARGO POUNDS (in millions) 7.00 6.00 2006 2007 2008 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

CARGO (IN POUNDS) PERCENT Month 2006 2007 2008 METRIC TONS CHANGE January 9,545,594 10,293,920 11,231,880 5,093.8 9.11% February 8,515,885 10,313,441 9,786,730 4,438.4 -5.11% March 10,126,307 11,129,070 9,519,983 4,317.5 -14.46% 1st Quarter 28,187,786 31,736,431 30,538,593 13,850 -3.77% April 8,665,756 9,653,603 May 9,363,233 10,718,860 June 9,772,322 10,483,160 2nd Quarter 27,801,311 30,855,623 July 9,580,355 10,377,947 August 11,153,394 11,736,465 September 10,256,974 10,311,212 3rd Quarter 30,990,723 32,425,624 October 10,408,180 10,813,406 November 10,859,489 10,646,261 December 14,242,702 12,772,059 4th Quarter 35,510,371 34,231,726 TOTALS 122,490,191 129,249,404 30,538,593 13,849.7 -3.77%

% change YTD

Reno-Tahoe International Airport MONTHLY ENPLANED PASSENGERS MARCH 2008

PASSENGERS¹

Jan Month 2006 2007 2008 DIFFERENCE

Feb January 206,675 198,737 195,981 -1.39%

Mar February 197,016 193,576 200,851 3.76%

Apr March 229,093 237,470 221,875 -6.57%

May April 205,569 204,156

June May 201,560 206,369

July June 218,312 226,577

Aug July 230,715 229,238

Sept August 222,404 232,031

Oct September 201,599 199,578

Nov October 191,580 198,499

Dec November 177,581 184,384 December 191,404 181,472 TOTALS 2,473,508 2,492,087 618,707 -4.20%

¹Per Landing Reports

Monthly Enplaned Passengers

250,000

240,000

230,000

220,000

210,000

200,000

190,000 PASSENGERS 180,000

170,000

160,000

150,000

y y il y e y t r r r r r r h r a l s e e e e a a rc p n u u b b b b u u a M u J g o n r A J u m t m m a b M A te c e e J e p O v c F e o e S N D 2006 2007 2008

Reno-Tahoe International Airport MONTHLY DEPLANED PASSENGERS MARCH 2008

PASSENGERS¹ Month 2006 2007 2008 DIFFERENCE

Jan January 201,391 195,544 189,631 -3.02%

Feb February 201,290 197,089 202,968 2.98%

Mar March 233,269 240,490 213,620 -11.17%

Apr April 201,208 198,794

May May 205,261 211,521

June June 223,935 228,762

July July 232,477 233,323

Aug August 227,304 238,540

Sept September 195,756 195,908

Oct October 188,438 195,508

Nov November 179,936 187,392

Dec December 202,985 193,988 TOTALS 2,493,250 2,516,859 606,219 -11.21%

¹Per Landing Reports - Scheduled and Charter

Monthly Deplaned Passengers

250,000 240,000 230,000 220,000 210,000 200,000 190,000

PASSENGERS 180,000 170,000 160,000 150,000

e y r ril n l e ary p Ju gust ber ber u A May Ju u m m March A te e Jan October cemb February ov e Sep N D

2006 2007 2008

Reno-Tahoe International Airport MONTHLY ENPLANED PASSENGER LOAD FACTOR SUMMARY MARCH 2008

Monthly Load Factor

100.00% 95.00% 90.00% 85.00% 80.00% 75.00% 70.00% 65.00% 60.00% 55.00% 50.00% 45.00% 40.00% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2006 82.75% 80.57% 83.71% 81.83% 80.28% 85.37% 85.29% 81.23% 79.74% 74.69% 71.90% 73.30% 2007 73.10% 75.70% 81.80% 76.45% 77.46% 82.96% 80.80% 81.90% 75.80% 77.00% 71.10% 69.30% 2008 68.10% 75.06% 75.20% 2006 2007 2008

PASSENGERS* LOAD FACTOR (%) DIFFERENCE Month 2006 2007 2008 2006 2007 2008 (2008 / 2007) January 206,675 198,737 195,981 82.75 73.10 68.10 -5.0 February 197,016 193,576 200,851 80.57 75.65 75.06 -0.6 March 229,093 237,470 221,875 83.71 81.78 75.20 -6.6 April 205,569 204,156 81.83 76.45 May 201,560 206,369 80.28 77.46 June 218,312 226,577 85.37 82.96 July 230,715 229,238 85.29 80.75 August 222,404 232,031 81.23 81.89 September 201,599 199,578 79.74 75.77 October 191,580 198,499 74.69 77.07 November 177,581 184,384 71.86 71.48 December 191,404 181,472 73.32 69.13 *** 2,473,508 2,492,087 618,707 80.05 76.96 72.8 -4.1

* Per Landing Reports *** AVERAGE OF AIRLINE LOAD FACTORS

Reno-Tahoe International Airport LOAD FACTOR BY AIRLINE MARCH 2008

Carrier Seats Available Enplaned Passengers 2008 Load Factor (%) 2007 Load Factor (%) Difference Alaska / Horizon 23,550 19,382 82.3% 82.4% -0.1 Allegiant 1,950 1,208 61.9% n/a n/a Aloha 3,844 2,514 65.4% 62.7% 2.7 American* 19,400 17,687 89.0% 89.3% -0.4 Continental 9,964 8,208 82.4% 87.6% -5.2 Delta 13,290 11,636 87.6% 92.4% -4.9 Delta Connection 6,765 5,770 85.3% 96.5% -11.2 ExpressJet 7,700 4,655 60.5% n/a n/a Southwest 160,799 103,114 64.1% 74.1% -10.0 United 37,424 28,587 76.4% 86.7% -10.3 US Airways 21,878 15,839 72.4% 83.5% -11.1 Frontier n/a n/a n/a 83.7% n/a Atlantic Southeast n/a n/a n/a 60.7% n/a ** 306,564 218,600 75.2% 81.8% -6.6

*LOAD FACTORS REPORTED BY AIRLINES ** AVERAGE OF AIRLINE LOAD FACTORS

Airline Load Factor

100.0%

90.0% 80.0% Average 75.2% 70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

l t * a ta n e d ant n l io te izon i loha nt e west r g A e D h ni rways lle erica ressJ U i Ho A p out / m ontin x S S A A C E U ta Connect laska el A D

Reno-Tahoe International Airport DAILY ENPLANED SEATS AVAILABLE MARCH 2008

10,800

10,600

10,400

10,200

10,000

9,800

9,600

9,400

9,200 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2006 10,018 10,192 10,190 9,763 9,763 9,851 9,977 9,981 10,016 9,950 9,724 10,047 2007 10,130 10,099 10,505 10,332 10,430 10,633 10,633 10,633 10,329 10,122 9,901 10,086 2008 10,064 10,256 10,153

2006 2007 2008 TOTAL AIR CARRIER MARKET SHARE MARCH 2008

Percentage of Carrier Passengers Total Alaska Air Group 38,746 8.90% Allegiant 2,557 0.59% Aloha 5,213 1.20% American 34,232 7.86% Continental 16,296 3.74% Delta 22,920 5.26% Delta Connection* 10,646 2.44% ExpressJet 9,227 2.12% Southwest 203,703 46.78% United 55,650 12.78% US Airways 30,103 6.91% Non-Scheduled 6,202 1.42% Totals 435,495 100.00%

*Delta Connection carriers: ExpressJet and SkyWest

Delta, 5.3% Allegiant, 0.6% American, 7.9% Continental, 3.7% Aloha, 1.2% Delta Connection*, 2.4% Alaska Air Group, 8.9% ExpressJet , 2.1% Non-Scheduled, 1.4%

US Airways, 6.9%

United, 12.8% Southwest, 46.8%

Reno-Tahoe International Airport TOTAL AIRLINE MARKET SHARE MARCH 2008

Carrier Passengers Percentage of Total Alaska Air Group 38,746 8.90% Allegiant 2,557 0.59% Aloha 5,213 1.20% American 34,232 7.86% Continental 16,296 3.74% Delta 22,920 5.26% ExpressJet - Delta 4,562 1.05% ExpressJet - Branded 9,227 2.12% 6,560 1.51% Skywest 6,084 1.40% Southwest 203,703 46.78% United 55,650 12.78% US Airways 23,543 5.41% Non-Scheduled 6,202 1.42% Totals 435,495 100.0% *Delta Connection carriers: ExpressJet and SkyWest

ExpressJet - Delta, 1.1% Aloha, 1.2% Continental, 3.7% Allegiant, 0.6% Delta, 5.3% American, 7.9% ExpressJet - Branded , 2.1% Mesa Air Group, 1.5% Alaska Air Group, 8.9%

Skywest, 1.4% Non-Scheduled, 1.4%

US Airways, 5.4%

United, 12.8% Southwest, 46.8%

Reno-Tahoe International Airport TOTAL PASSENGERS DOMESTIC & INTERNATIONAL MARCH 2008

Jan DOMESTIC SCHEDULED PASSENGERS Feb Mar 550,000 Apr

May

June 500,000 July

Aug

Sept

Oct 450,000

Nov

Dec 400,000 PASSENGERS

350,000

300,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2006 2007 2008

DOMESTIC CHARTER PASSENGERS

7,000

6,000

5,000

4,000 PASSENGERS

3,000

2,000

1,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2006 2007 2008

2008 DOMESTIC¹ INTERNATIONAL¹ 2008 TOTAL 2008 Charter 2007 Charter DIFFERENCE MONTH Scheduled Charter Scheduled Charter Passengers Passengers Passengers Passengers January 381,103 4,509 0 0 385,612 4,509 3,230 39.6% February 399,602 4,217 0 0 403,819 4,217 4,021 4.9% March 429,293 6,202 0 0 435,495 6,202 6,471 -4.2% April May June July August September October November December TOTALS 1,209,998 14,928 0 0 1,224,926 14,928 13,722 8.8%

¹Per Landing Reports

Reno-Tahoe International Airport MONTHLY SCHEDULED DEPARTURES MARCH 2008 2,700

2,600

2,500

2,400

2,300

2,200

2,100

2,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2006 2,365 2,256 2,429 2,375 2,371 2,351 2,409 2,441 2,310 2,395 2,271 2,395 2007 2,462 2,239 2,534 2,468 2,520 2,544 2,628 2,644 2,449 2,489 2,408 2,533 2008 2,608 2,434 2,598 MONTHLY AVAILABLE SEATS MARCH 2008 350,000

330,000

310,000

290,000

270,000

250,000

230,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2006 286,884 270,407 290,587 280,789 277,610 289,990 302,163 305,409 288,480 299,489 282,183 297,583 2007 306,097 277,791 314,406 306,129 308,027 307,152 318,384 319,833 295,522 300,765 280,121 292,630 2008 301,118 284,419 307,910 TOTAL OPERATIONS MARCH 2008

15,000

14,000

13,000

12,000

11,000

10,000

9,000 Number of Operations 8,000

7,000

6,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2006 2007 2008

Number of Operations 07 to 08 Percent Month 2006 2007 2008 Change January 11,147 12,628 10,163 -19.52% February 10,730 10,322 10,420 0.95% March 10,595 13,933 10,948 -21.42% April 10,979 11,424 May 12,579 12,734 June 12,956 11,733 July 11,977 12,657 August 13,421 12,057 September 13,430 11,706 October 12,494 10,934 November 10,528 10,624 December 10,891 10,054 TOTALS 141,727 140,806 31,531 37.39%

% change YTD

Reno-Tahoe International Airport