COVID-19 Financial Overview
March 24, 2020
Background
• The accelerating COVID-19 infection
rate and government response is having
a significant impact on Port business
operations
• The airport is currently experiencing
the most severe impacts; this year’s
cruise season is also at significant risk
• Some Maritime/EDD commercial
businesses affected
• Financial impacts to NWSA appear
moderate at present
2
Airport activity is dropping precipitously
TSA checkpoint activity down 80%+ in recent days
3
Airline Capacity Cuts
(as of 3/23/20)
• Alaska: -10% April; -15% May
• Delta: -70% network-wide (next few months)
• United: -60% network-wide (April & May)
• American: -20% April, -30% May domestic
• Southwest: -20%, 4/14-6/5
• Hawaiian: flights suspended from late March UFN
• JetBlue: reducing from 7 flights/day to 3 flights/day in April
• Spirit: reducing from 6 flights/day in April to 2-3 flights per day
• Int’l service: Europe, Asia & Canada services mostly suspended,
Mexico service changes unknown (Int’l capacity reduction of 90%+)
4
Airport COVID-19 Impact Projection (March 20)
35% reduction vs.
2019.
5
6%
13%
-53%
-75%
-75%
-75%
-72%
-31%
-9%
-3%
-3%
-8%
-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly Enplanement Change vs. Prior Year
The COVID-19 crisis is
projected to have a
significantly greater impact
on SEA passenger traffic than
previous downturns
6
-26%
-16%
-14%
-11%
-9%
-7%
-6%
-6%
-7%
-5%
-7%
-5%
26%
11%
1%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
S-01 O-01 N-01 D-01 J-02 F-02 M-02 A-02 M-02 J-02 J-02 A-02 S-02 O-02 N-02
9/11
-2%
-8%
-4%
-6%
-9%
-5%
-4%
-5%
-4%
-3%
-5%
0%
0%
1%
3%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
O-08 N-08 D-08 J-09 F-09 M-09 A-09 M-09 J-09 J-09 A-09 S-09 O-09 N-09 D-09
Great Recession
-53%
-75%
-75%
-75%
-72%
-31%
-9%
-3%
-3%
-8%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
M-20 A-20 M-20 J-20 J-20 A-20 S-20 O-20 N-20 D-20 J-21 F-21 M-21 A-21 M-21
COVID-19 (est. as of 3/20)
Monthly Enplanement Change vs. Prior Year
Cruise season at risk
• Outbreaks of COVID-19 onboard
and quarantined ships have
raised significant concerns.
• CLIA has announced voluntary
suspensions of cruises from US
ports for 30 days.
• Canada has closed its ports to
cruise ship calls until July 1.
7
Financial Considerations
• COVID-19 will result in significant revenue reductions
• Impacts are difficult to estimate given substantial uncertainty regarding
the depth and duration of the crisis, with new information arriving
almost daily
• Key considerations are operating cash balances, operating & non-
operating cash flows, and capital spending
• Revenue bond debt service coverage is also a key measure
• Unlike many other governments, the Port is not required to match
revenue reductions with equivalent expense reductions
• Credit markets are currently stressed, limiting access to outside capital
8
Responses/Early Actions
• Conducting detailed financial analyses to assess impacts on cash flow
and liquidity
• Hiring freeze in place
• Identifying Port-wide operating and capital expenditure reductions
• Reviewing other expenditures that may be deferred
• Pursuing $200 million bank credit facility for additional liquidity
• Planning for airport bond refunding for debt service savings/possible
restructuring when markets recover
• Advocating for federal funding for economic support and recovery,
particularly for airports and small businesses
9
