Introduction and Adoption of Resolution
No. 3809 Amending the Authorization for
Passenger Facility Charges (PFCs) –
effective January 1, 2023
Item No.
10e_supp
Date of Meeting November 29, 2022
Importance of PFCs
• PFCs are collected from passengers by airlines and submitted to airports
for use as approved by application to the Federal Aviation Administration.
• Costs paid by PFCs are excluded from airline rate bases, thus lowering
airline costs (CPE).
• SEA has been collecting PFCs since 1992. Resolution No. 3464 (2001)
included an expiration date of 12/31/2022.
• Proposed action will permit the Port to continue collecting PFCs until the
Port Commission decides to terminate collection.
• SEA anticipates collecting approximately $95 million in PFCs in 2023.
Without these PFCs in 2023:
– CPE would increase by $3.69
– Debt service coverage (calculated per terms of airline lease agreement) would
decrease by .31
2
Annual PFC Collections $94+ Million
$93.9
$94.1
$93.5
$95.8
$97.7
$99.7
$101.7
$103.7
$105.8
$107.9
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
$ in Millions
Projected PFC Collections 2022-2031
3
Primary PFC Usage is Debt Service Offset
$93
$100
$96
$104
$99
$101
$103
$103
$109
$96
$-
$20
$40
$60
$80
$100
$120
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
$ in Millions
Projected PFC Usage 2022-2031
Third Runway Baggage STS/STEP IAF NSAT PAYGO Total
4
PFC History of Approval & Use
Year Application
Approved for
Use
PFC
Expenditures
1992
Application 1 (Closed)
$27.9 $27.9
1994
Application 2 (Closed)
48.8
48.8
1996
Application 3 – Passenger Conveyance System (STS)
292.9
257.4
1998 Application 4
•
Third Runway
•
Concourse A Expansion (STEP)
1,642.1
1,007.8
2011
Application 7 – In-line Baggage
155.7
56.6
2017 Application 8
•
International Arrivals Facility (IAF)
•
North Satellite
1,674.5
252.6
TOTAL
$3,841.9
$1,651.1
5
Background
Previous Resolutions Adopted by Commission:
• September 25, 2001 – Resolution No. 3464 – expiring December 31, 2022
• October 28, 1997 – Resolution No. 3253
• July 25, 1995 – Resolution No. 3199
• May 25, 1993 – Resolution No. 3143
• December 10, 1991 – Resolution No. 3099
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