Item No. Date of Meeting: AVIATION DIVISION 2027 Proposed Operating & Capital Budgets Commission Briefing October 13, 2026 11a_supp October 13, 2026 Outline for Aviation Division Presentation • Mission and Vision • Strategic Priorities • 2027 Proposed Budget Overview • 2027 Proposed Operating Budget - Commission Priorities - Equity Spending Highlights • 2027-2036 (10-Year) Proposed Financial Forecast • 2027-2036 (10-Year) Proposed Capital Program Forecast • Appendix 2 SEA: Mission and Vision MISSION Seattle-Tacoma International Airport (SEA) promotes regional economic vitality by operating a world-class international airport, providing an extraordinary customer experience, and being a model of environmental innovation for our region and industry. VISION Connecting the region to the world through flight. The journey begins here. SEA =Seattle-Tacoma International Airport 3 Century Agenda Drives Division Plans and Budgets CA = Century Agenda COE = Center of Expertise EDP = Executive Director Priorities ELT = Executive Leadership Team 4 SEA Key Priorities Zero major, intermediate or repeat Part 139 discrepancies Zero major & repeat TSA discrepancies Part 150 Report Submittal Q4 2027 NPDES (Stormwater) permit renewal by Q1 NPDES = National Pollutant Discharge Elimination System SEA = Seattle-Tacoma International Airport SEPA = State Environmental Policy Act TSA = Transportation Security Administration 5 2027 PROPOSED BUDGET OVERVIEW 6 2027 Aviation Division Budget Context • Aviation Budget Target: - Target: 4.5% increase compared to the 2026 Revised Budget - Current: 2% increase compared to the 2026 Revised Budget • Aviation Division Proposed Budget: - Payroll unfilled (vacancy) FTE rate of 2% - Medical benefit rate increases - Environmental remediation liability costs - Emergency mitigation on critical infrastructure FTE = Full-Time Equivalent 7 2027 Aviation Division Budget Considerations • Slowing economic growth and geopolitical uncertainties • Enplanement forecast in 2027 Budget shows modest growth compared to 2026 Forecast • Growing baseline costs (primarily payroll) • Build capital capacity (how much we can afford): - Manage growth of costs - Deliver consistent growth through innovation in non-aeronautical revenues 8 Preliminary Passenger Forecast Annual Passenger Growth (%) 2023 Actual 10.7% 2024 Actual 3.5% 0.1% 2025 Actual 2026 Budget 2.6% 2026 Forecast vs 2025 Actual 0.8% 2027 Budget vs 2026 Forecast 1.3% 2026 Passenger Forecast is 1.8%  below the 2026 Budget Forecast = Snapshot in Time 9 Operating Revenues Summary in 2027 Operating Revenues 1200M 1040M 909M 1000M 861M 806M 6.8% 963M 6.0% 5.5% 356M 22.3% 800M 600M 8.1% 340M 327M 363M 344M 400M 200M 480M 521M 545M 2023 Actuals 2024 Actuals 2025 Actuals 619M 684M M Aeronautical GASB = Governmental Accounting Standards Board Non-Aeronautical 2026 Rev. Budget 2027 Prop. Budget Total Aviation Operating Revenues (Rate %) *Non-Aero Revenue excludes GASB 87 lease interest income reporting adjustments 10 Operating Expenses Summary in 2027 Operating Expenses 700M 537M 600M 500M 400M 446M 18.9% 530M 602M 590M 2.1% 9.8% 1.4% 194M 198M 16.5% 162M 178M 368M 359M 2024 Actuals 2025 Actuals 138M 300M 200M 308M 392M 409M 2026 Rev. Budget 2027 Prop. Budget 100M M 2023 Actuals Aeronautical GASB = Governmental Accounting Standards Board Non-Aeronautical Total Aviation Operating Expenses (Rate %) *Excludes GASB Adjustments 11 Airport Budget Summary and Key Indicators 2024 Actuals Airport Budget Summary (figures in thousands) 2025 Actuals 2026 Forecast 2026 Budget 2026 Revised Budget 2027 Proposed Budget Fcst vs. Inc/(Dec) from Rvsd_Bud 2026 Revised Variance Budget $ % $ % Operating Revenue Aeronautical Revenues Non-Aeronautical Revenues Total Operating Revenue GASB 87_96_103 Revenues Total Operating Revenues GASB Comparable Basis 520,942 340,360 861,301 15,948 877,249 545,307 363,215 908,522 (7,646) 900,876 613,884 357,877 971,761 9,872 981,633 617,786 367,381 985,167 (13,422) 971,745 618,565 344,087 962,652 9,872 972,524 683,949 356,471 1,040,419 13,195 1,053,614 (4,681) 13,790 9,109 9,109 -1% 65,384 4% 12,383 1% 77,767 0% 3,323 1% 81,090 11% 4% 8% 34% 8% Total Operating Expenses 1 GASB 87_96_103 Expenses Total Operating Expenses GASB Comparable Basis Net Operating Income without GASB Comparable Basis Net Operating Income GASB Comparable Basis 529,828 2,033 531,861 331,473 345,388 537,028 5,167 542,195 371,495 358,681 590,810 8,101 598,911 380,951 382,722 588,135 9,800 597,935 397,032 373,810 589,858 8,101 597,958 372,795 374,566 602,382 8,265 610,648 438,037 442,967 953 953 8,157 8,157 0% 12,524 165 0% 12,689 2% 65,243 2% 68,401 2% 2% 2% 18% 18% Debt Service Coverage ADF Balance CPE 1.89 743,355 18.26 1.90 828,716 19.06 1.60 882,596 21.43 1.56 882,204 21.16 1.57 882,204 21.19 1.56 903,084 23.56 0.03 392 0 2% 0% 1% (0.01) 20,880 2.37 -1% 2% 11% Non-Aeronautical NOI2 Enplanned Passengers Capital Expenditures 178,268 26,295 684,442 184,831 26,317 840,459 157,197 26,514 658,616 170,452 27,031 658,954 146,253 27,031 658,954 162,796 26,890 836,306 10,944 (517) (338) 7% 16,543 -2% (141) 0% 177,352 11% -1% 27% 1 Payroll expenses include DRS pension credits in 2024 and 2025 2 Unadjusted - not including CFC Surplus ADF = Airport Development Fund CPE = Cost Per Enplanement DRS = Department of Retirement Systems GASB = Governmental Accounting Standards Board NOI = Net Operating Income O&M = Operating & Maintenance 12 2027 PROPOSED OPERATING BUDGET 13 Total Airport Expense Summary Total Airport Expense Summary ($ in thousands) Operating Expenses Payroll Outside Services Utilities Other Expenses Total Airport Direct Charges Environmental Remediation Liability Total Exceptions Total Airport Expenses Corporate Police Maritime/Economic Development/Other Total Charges from Other Divisions Total Operating Expenses without Pension True-Up DRS Pension True-up Exp Total Operating Expenses w/Pension True-Up GASB 87_96_103 Expenses Total Operating Expenses GASB Comparable Basis DRS = Department of Retirement Systems GASB = Governmental Accounting Standards Board 2024 Actuals 2025 Actuals 2026 Forecast 2026 Budget 2026 Revised Budget 2027 Proposed Budget Inc/(Dec) from 2026 Revised Budget $ % 223,027 104,086 25,543 22,150 374,806 243,179 115,992 26,959 24,957 411,087 248,847 126,149 26,992 20,612 422,600 253,455 124,030 26,936 19,657 424,077 253,455 124,030 26,936 19,717 424,138 259,680 110,481 27,822 32,599 430,581 6,225 (13,549) 886 12,882 6,444 2% -11% 3% 65% 2% 2,600 2,600 2,693 2,693 2,587 2,587 2,267 2,267 2,267 2,267 5,000 5,000 2,733 2,733 121% 121% 377,406 124,058 39,709 7,232 170,999 548,405 (18,577) 529,828 2,033 531,861 413,780 93,940 42,925 7,493 144,358 558,138 (21,111) 537,028 5,167 542,195 425,187 118,661 39,248 7,714 165,623 590,810 590,810 8,101 598,911 426,344 114,558 39,200 8,033 161,790 588,135 588,135 9,800 597,935 426,405 116,220 39,200 8,033 163,453 589,858 589,858 8,101 597,958 435,581 115,693 42,449 8,659 166,801 602,382 602,382 8,265 610,648 9,177 (528) 3,249 626 3,348 12,524 12,524 165 12,689 2% 0% 8% 8% 2% 2% 2% 2% 2% 14 Modified Zero-Based Budget Overview¹ 2027 Budget Reductions and Efficiencies Savings Modified Zero-Based Budgeting (ZBB) reductions & efficiencies Travel and Training reduction Cost Categories 2026 Revised Budget 2027 Zero Based Budget ($2,902,696) (1.7%) ($541,824) (20%) Net Change Net Change % Equipment Expenses $6,003,301 $6,877,015 $873,714 14.6% General Expenses $35,336,065 $31,256,646 ($4,079,419) -11.5% Outside Services $95,267,406 $92,071,709 ($3,195,696) -3.4% Supplies & Stock $7,171,829 $9,852,339 $2,680,510 37.4% Telecommunication $886,907 $928,119 $41,212 4.7% $26,943,758 $27,720,742 $776,984 2.9% $171,609,266 $168,706,570 ($2,902,696) -1.7% Utilities Grand Total ¹This table is abbreviated excluding depreciation, SBITA, amortization, non-operating expenses, taxes, travel and training, and workers comp, which remain unchanged for this modified ZBB exercise. ¹Table illustrates baseline budget reductions exclusively. Source: ZBB Final Analysis (Category rollup), Analysts ZBB 2026 vs. 2027 Proposed. FTE = Full-Time Equivalent SBITA = Subscription Based Info Technology Arrangement ZBB = Zero-Based Budgeting 15 Aviation Operating Expense Budget Changes Note: Aviation Division Org Basis - this chart does not include direct charges or allocations from other divisions. Budget requests are net of grants. B&O = Business & Occupation Tax FTE = Full-Time Equivalent ERL = Environmental Remediation Liability O&M = Operating & Maintenance SBITA = Subscription Based Info Technology Arrangement 16 Total Charges from Other Divisions to Aviation Total Charges from Other Divisions 2024 Actuals1 2025 Actuals1 2026 Forecast 2026 Budget 2026 Revised Budget 2027 Proposed Budget Inc/(Dec) from 2026 Revised Budget ($ in thousands) Engineering Port Construction Services Information & Comm. Technology Police Department Other Central Service Departments Total Central Services Maritime Economic Development Total Charges from Other Divisions 6,841 6,225 24,515 36,810 79,751 154,142 7,361 7,752 25,244 39,476 46,191 126,025 11,941 7,986 27,200 39,248 71,535 157,909 11,918 7,682 27,646 39,200 67,311 153,757 11,918 7,682 27,646 39,200 68,974 155,420 8,541 6,353 27,634 42,449 73,164 158,142 $ (3,377) (1,329) (12) 3,249 4,190 2,722 % -28% -17% 0% 8% 6% 2% 3,872 3,053 4,501 2,853 4,596 3,118 4,594 3,439 4,594 3,439 4,559 4,100 (35) 662 -1% 19% 161,067 133,380 165,623 161,790 163,453 166,801 3,348 2% 1 2024 and 2025 includes the DRS Pension Credit Primary drivers for increases: • Police court & jail contract costs • Reduced unfilled (vacancy) factor from 4% to 2% FTE = Full-Time Equivalent Primary driver for decreases: • Eliminated unfilled & filled FTEs 17 2027 Budget Requests by Business Plan Category # of Requests Baseline NonBaseline Total Asset & Financial Stewardship 13 $530 $5,253 $5,783 Employee Engagement 1 $0 $200 $200 Health, Safety, and Security 13 $5,761 $1,301 $7,062 Sustainability & Community 8 $311 $2,995 $3,306 TOTAL 35 $6,602 $9,749 $16,351 Category $000s 18 Largest Approved Budget Requests Description Total ($000s) STAC/TSA Staffing - Exit Lane Coverage & Divesting $4,830 Expense Items with Capital Projects $2,181 Tenant Project Manager Support - Tenant/ADR $1,855 Part 150 Noise and Land Use Compatibility Study $1,400 Self Contained Breathing Apparatus (SCBA) Replacement $750 Clean Buildings Energy Efficiency Measures $700 Pavement Management Plan $460 New Air Service Incentives $350 ADR = Airport Dining & Retail SAMP = Sustainable Airport Master Plan SEA = Seattle-Tacoma International Airport STAC = Seattle-Tacoma Airline Consortium TSA = Transportation Security Administration 19 Aviation 2027 Budget $7M in FTE Reductions Reviewed all unfilled positions including positions unfilled for a year FTE Action FTE % of Total Unfilled FTE Reduction 32.32 71% Filled Reduction 13.00 29% TOTAL 45.32 100% 32.32 FTE | 71% Unfilled Positions 13.00 FTE | 29% Filled Positions Position count exceeds FTE due to two partial positions (0.20 and 0.12). FTE = Full-Time Equivalent 20 Aviation Budgeted FTEs and Unfilled FTEs, 2019-2027 1,600 500 1,400 1,251 1,381 1,387 1,342 400 1,144 1,106 1,000 300 267 241 800 193 600 202 178 200 166 131 119 400 60 200 100 0 0 2019 2020 2021 2022 2023 Budgeted FTE 2024 2025 2026 2027 Unfilled FTEs 2027 reduced by 45.32 FTE or (3.3%), with unfilled FTEs down from a high of 267 in 2021 to 60 in 2027. Unfilled FTEs are included in total budgeted FTE counts for each year. FTE = Full-Time Equivalent 21 Unfilled FTEs Budgeted FTE 1,200 1,247 1,271 1,316 Aeronautical NOI 2024 Actuals Aeronautical NOI ($ in thousands) 2025 Actuals 2026 Forecast 2026 Budget 2026 Revised Budget 2027 Proposed Budget Inc/(Dec) from 2026 Revised Budget $ % Rate Base Revenues Airfield Movement Area Airfield Apron Area Terminal Rents Federal Inspection Services (FIS) Total Rate Base Revenues Airfield Commercial Area Total Aeronautical Revenues GASB 87_96_103 Revenues Total Aeronautical Revenues GASB Comparable Basis 170,821 32,270 279,722 15,206 498,019 22,922 520,942 7 520,949 164,804 33,404 271,462 48,849 518,520 26,787 545,307 415 545,722 180,891 34,892 320,057 52,257 588,097 25,787 613,884 613,884 183,818 35,416 319,223 53,542 591,999 25,787 617,786 617,786 184,220 35,443 319,543 53,571 592,777 25,787 618,565 618,565 201,453 40,328 353,582 59,628 654,991 28,958 683,949 683,949 17,234 4,884 34,039 6,057 62,213 3,170 65,384 65,384 11% Total Aeronautical Expenses GASB 87_96_103 Expenses Total Aeronautical Expenses GASB Comparable Basis 367,736 250 367,986 358,644 315 358,959 390,555 163 390,718 391,206 163 391,369 392,023 163 392,186 408,707 210 408,917 16,684 47 16,731 4% 29% 4% Aeronautical NOI GASB Comparable Basis Debt Service Net Cash Flow 152,956 (157,518) (4,562) 186,348 (176,250) 10,098 223,166 (201,468) 21,698 226,417 (202,992) 23,426 226,378 (202,992) 23,387 275,032 (248,741) 26,290 48,653 (45,750) 2,904 21% 23% 12% 9% 14% 11% 11% 10% 12% 11% 2026 Revised to 2027 Budget Revenues  11% NOI  21% Primary drivers for increases in 2027 revenues: • Debt service for completed capital projects • O&M expenses Notes: Aeronautical revenues follow a cost recovery model under FAA regulations and the Signatory Lease & Operating Agreement. Aeronautical operating , debt service of capital costs net of grants are recovered through airlines rates and charges. Increases in revenues are tied to increases in costs. Net cash flow balance increases due to amortization with cash funding on capital projects. FAA = Federal Aviation Administration FIS = Federal Inspection Services (US Customs) GASB = Governmental Accounting Standards Board NOI = Net Operating Income O&M = Operations & Maintenance 22 Non-Aeronautical NOI 2024 Actuals Non-Aeronautical NOI ($ in thousands) 2025 Actuals 2026 Forecast 2026 Budget 2026 Revised Budget 2027 Proposed Budget Inc/(Dec) from 2026 Revised Budget $ % Non-Aeronautical Revenues Public Parking Rental Cars Ground Transportation 116,535 64,434 23,946 116,870 67,479 24,376 118,419 45,624 23,758 114,531 67,862 24,896 114,531 43,555 24,896 124,929 46,478 26,258 10,399 2,924 1,363 9% 7% 5% Employee Parking1 10,462 12,532 14,092 14,138 14,138 16,724 2,586 18% Airport Dining & Retail1 Non-Aero Commercial Properties International Place (STOC) Clubs and Lounges Non-AirlineTerminal Leased Spc Utilities 72,234 17,639 16,709 7,559 9,578 73,777 18,625 10,174 19,528 8,584 10,837 77,209 22,786 12,214 19,292 9,481 11,202 77,078 20,475 11,712 16,153 8,157 10,551 77,596 20,475 11,712 16,153 8,157 10,551 69,182 21,716 12,277 10,531 9,727 12,140 (8,413) -11% 1,240 6% 566 5% (5,622) -35% 1,571 19% 1,589 15% Other2 Total Non-Aeronautical Revenues Less: Total Non-Aeronautical Expenses Plus: GASB Comparable Basis Net Change 3 Non-Aeronautical NOI GASB Comparable Basis Debt Service Net Cash Flow 1,264 340,360 162,092 (12,835) 165,433 (43,887) 121,546 434 363,215 178,384 (16,046) 168,785 (33,957) 134,828 3,729 357,806 200,609 1,957 159,154 (57,802) 101,352 1,829 367,381 196,929 (21,855) 148,597 (57,369) 91,228 2,325 344,087 197,834 1,934 148,187 (57,369) 90,818 6,507 4,182 180% 356,471 12,383 4% 193,675 (4,159) -2% 5,139 3,205 166% 167,935 19,748 13% (60,331) (2,962) 5% 107,604 16,786 18% 1 Includes lease payments from tenants as non-operating interest income instead of operating revenues 2 Other revenue also includes revenues from Transportation Mgmt Association, Tenant Marketing, and Airport Office Building Conference Center 3 The implementation of GASB 103 has reclassified CFC revenue from operating to non-operating, which is reflected in 2026 Forecast and Revised Budget Note: Lease payments from tenants treated as non-operating interest income and lease interest expenses ADR = Airport Dining & Retail CFC = Customer Facility Charge GASB = Governmental Accounting Standards Board NOI = Net Operating Income 2026 Revised to 2027 Budget Revenues  4% NOI  13% Primary drivers for increases in 2027 revenues: • Public Parking • Rental Cars Primary drivers for decreases in 2027 revenues: • SCE project impacts to ADR tenants & S Concourse Lounge • TASCR SCE = South Concourse Evolution TASCR = Tenant ADR Shell & Core Renovations 23 Commission 2027 Budget Priorities • $200K Childcare Bridge Strategy to support SEA childcare policy implementation efforts in partnership with External Relations and Office of Equity, Diversity, and Inclusion. • Continue to make progress on preconditioned air equipment maintenance, replacement, and usage. SEA = Seattle-Tacoma International Airport 24 EQUITY SPENDING 25 Equity Spending Highlights Equity in Budgeting: 2027 Reductions Review NEW EQUITY SPENDING IN 2027 $187K With resource-conscious efforts and 2027 expense targets, every reduction of $10K or more was analyzed for impacts on our workforce, communities, contracting, and operations. South 160th St. Holding Lot EV Chargers KEY PATTERNS - AVIATION DIVISION Approved for Transportation Network Companies (TNC) and on-demand taxis 1 Most non-payroll budget reductions did not have an EDI impact Community Investments. A budget item that invests in 2 Reduction in contractors / consultants Black, Indigenous, and People of Color (BIPOC) communities and/or structurally excluded communities. • Reduced project workload lowers the need for consultants • Could impact Port staff when short-staffed 3 EDI= Equity, Diversity, & Inclusion EV = Electric Vehicle One department reduced their Language Access budget TNC = Transportation Network Companies 26 Aviation - Equity Spending by Year TOTAL EQUITY SPENDING BY YEAR ONGOING INVESTMENTS Dollars in millions $1.4M increase from 2026 4.2M 3.3M 2.8M 2.0M 1.6M Part 150 Noise Compatibility Study $1.4M SEA Moves Program $1.5M ADR Celebrations / Cultural Events $600K Childcare Initiative $200K Community Outreach $110K Language access / translation / interpretation costs $112K Customer Service focus on Accessibility $25K Airport Minority Advisory Council Sponsorship $25K 1.2M 2022 2023 2024 ADR = Airport Dining & Retail SEA = Seattle-Tacoma International Airport 2025 '26 Bud '27 Bud 27 Aviation Division Equity Spending Graphs Equity Spending by Category ($000s) 1,872K Removing Systemic Barriers 1,231K 1,397K Environmental Justice 750K '27 Budget 710K Engagement Community Investments Supplier Diversity '26 Budget 670K 187K No 2026 budget 40K 151K ACDBE = Airport Concession Disadvantaged Business Enterprise FAA = Federal Aviation Administration Supplier Diversity reduction due to: • $100K ACDBE Tracking Software system funds repurposed due to current FAA pause of program until further notice • $11K reduction to Airport Minority Advisory Council Sponsorship 28 2027 Aviation Operating Budget Key Takeaways Revenues • • • • • • up 8% Modest passenger forecast up 1.3% over the 2026 Forecast amid slowing economic growth and geopolitical uncertainty Total operating revenues of $1.053B, up 8% ($81M) over the 2026 Revised Budget Aeronautical up 10.6% ($65.4M); cost recovery of debt service on completed capital projects Non-Aeronautical up 4% ($12M); conservative, consistent growth through innovation Landside up 10% ($19M) on parking and ground transportation rate increases ADR down 11% ($8M) from SCE and tenant construction closures ADR = Airport Dining & Retail COLA = Cost of Living Adjustment ERL = Environmental Remediation Liability Forecast = Snapshot in Time Expenses • • • • • • up 2% 2% increase over the 2026 Revised Budget, below the 4.5% target Payroll is the primary baseline cost driver: 2% COLA, 1.76% Pay for Performance and collective bargaining (CBA) standards plus medical benefit rate increases Offset by a 2% payroll vacancy (unfilled FTE) rate; $7M payroll decrease Modified Zero-Based Budgeting decreased O&M $2.9M; Travel and Training decreased $540k Addition of $5M Environmental Remediation Liability (ERL) Emergency mitigation on critical infrastructure FTE = Full-Time Equivalent O&M = Operating & Maintenance SCE = South Concourse Evolution 29 ZBB = Zero-Based Budgeting 2027-2036 PROPOSED FINANCIAL FORECAST 30 Aviation Strategic and Financial Objectives • Aviation Division's Strategic and Business Plan Objectives - Safety and security of operations - Top 25 ASQ World Ranking • Ensure the airport's ten-year financial outlook meets or exceeds the financial performance targets. - Achieve debt service coverage of >1.40 times - Build cash balance in the Airport Development Fund to 18 months of O&M expenses - Deliver consistent growth through innovation in non-aeronautical revenues ASQ = Airport Service Quality O&M = Operating & Maintenance 31 2027-2036 Financial Forecast 2,100,000 350,000 1,800,000 300,000 1,500,000 250,000 1,200,000 200,000 900,000 150,000 600,000 100,000 300,000 50,000 Net Cash and Uses of Cash ($000s) Revenues and Costs ($000s) 2027 Budget and 2028-2036 Forecast, in $000s - revenue with-GASB 87 basis 0 0 2027 BUD 2028 FC 2029 FC 2030 FC 2031 FC 2032 FC 2033 FC 2034 FC 2035 FC 2036 FC In $000's 2027 BUD 2028 FC 2029 FC 2030 FC 2031 FC 2032 FC 2033 FC 2034 FC 2035 FC 2036 FC Total Operating Revenue 1,053,614 1,152,483 1,254,127 1,326,053 1,418,638 1,492,336 1,555,660 1,626,593 1,717,660 1,774,050 O&M, Debt & Other 911,454 967,346 1,047,966 1,118,244 1,210,694 1,273,127 1,328,541 1,392,678 1,464,379 1,515,473 Net Cash 173,089 205,445 224,435 230,679 234,443 247,760 256,692 264,640 285,354 292,236 Increment to build 18-month O&M target 22,531 55,296 45,075 48,553 53,074 50,642 46,623 54,759 56,600 58,483 Cash Use for Capital 150,558 150,149 179,361 182,126 181,369 197,118 210,069 209,881 228,755 233,753 GASB = Governmental Accounting Standards Board O&M = Operating & Maintenance Note: Lines read against the right axis. 32 Increasing Remaining Non-Aero Revenues Total Non-Aero Revenues 600,000 544,565 $ in Thousands 500,000 400,000 300,000 369,666 122,062 392,847 121,705 420,789 133,323 434,593 130,572 456,060 129,251 474,999 100,000 247,604 271,142 2027 2028 2029 505,121 150,385 137,562 200,000 287,466 490,847 140,871 559,691 147,467 138,773 304,021 326,809 337,437 349,976 366,348 2030 2031 2032 2033 2034 394,180 412,224 2035 2036 0 Non-Aero Operating Expenses, Debt & Other Non-Aero Remaining Revenues Remaining revenues grow 21% from $122.1M in 2027 to $147.5M in 2036 as revenue growth outpaces operating expenses, debt service, and other costs. GASB = Governmental Accounting Standards Board All figures include GASB 87 (lease interest) and GASB 103 33 10-Year Capital Funding Plan 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 $ in 000s 0 2027 2028 2029 Future Bond 2030 Prior Bond 2031 ADF 2032 AIP 2033 PFC 2034 Tax levy 2035 2036 CFC Includes CIPs from Central Services and other divisions of $59M ADF = Airport Development Fund AIP = Airport Improvement Plan CFC = Customer Facility Charge CIP = Capital Improvement Program PFC = Passenger Facility Charge 34 2027-2036 PROPOSED CAPITAL PROGRAM FORECAST 35 $6.4B Aviation Capital Program over 10 Years (2027-2036) Capital Spending $ in Millions Actual Capital Spending CapEx Forecast $981 1,000 • $300M CIP addition in 2027 POF versus 2026 POF - 2027 POF CIP is $6.4B over 10 years compared to $6B over the same 10 years in the 2026 POF CIP • Around 63% of first 5-year capital spending is from Mega projects with a budget of $300M or more • 10-year forecast includes $290M for Sustainable Airport Master Plan (SAMP) Preliminary Planning & Design 2027 Plan of Finance $840 $837 800 $684 700 $712 $703 $656 $710 $585 600 $444 400 $408 $302 $296 300 200 100 0 $6.4B AV CIP Spending - $4.1B CIP spending forecast in first 5-year (2027-2031) period - $2.3B CIP spending forecast in second 5-year (2032-2036) period $911 900 500 • 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CIP = Capital Improvement Program PFC = Passenger Facility Charge POF = Plan of Finance SAMP = Sustainable Airport Master Plan 36 2027 - 2036 Capital Project Forecast Summary 2027 2028 2029 2030 2031 2032 2033 2034 Mega Projects S Concourse Evolution Baggage Optimization 2026-2030 Airfield Pavement Program Main Terminal Improvement SEA Gateway C Concourse Expansion Subtotal - Mega Projects 82,829 106,891 34,012 357 72,633 115,689 412,412 381,496 136,218 76,668 4,800 35,107 9,523 643,813 357,035 121,072 98,969 10,500 587,576 299,798 131,511 79,224 30,500 541,033 278,114 60,160 81,835 50,000 470,109 262,974 16,510 100,000 379,484 266,982 150,000 416,982 232,695 232,695 185,566 185,566 71,098 71,098 7,376 7,376 2,343,133 448,961 353,205 345,800 35,107 9,523 3,535,730 Other Capital Projects SAMP Preliminary Planning / Design Proposed New Projects CIPs Reserves Subtotal CIP Cashflow Adj Reserve 283,139 264 4,255 12,379 300,037 - 262,412 3,494 13,665 26,499 306,070 (113,252) 252,918 37,418 20,530 37,457 348,323 45,301 162,762 37,514 67,995 34,157 302,427 67,951 65,746 35,203 122,995 8,819 232,762 - 39,037 48,308 83,175 106,296 276,815 - 44,220 34,447 46,100 167,780 292,547 - 39,235 34,153 12,525 266,577 352,490 - 33,299 27,060 3,445 158,674 222,478 - 7,660 32,403 190,350 230,413 - 288,300 288,300 - Total CIP 712,449 836,631 981,200 911,412 702,871 656,299 709,529 585,184 408,044 301,511 295,676 907,289 290,000 370,430 1,284,907 2,852,626 6,388,356 • 2035 2036 2027 - 36 TOTAL 2026 2027 capital spending has been reduced by $113M CIP Cashflow Adjustment and moved to 2028 and 2029. CIP Cashflow Adjustment was implemented to adjust CIP cashflows to better reflect expected project spending trends in aggregate. This adjustment affects the timing of spending only. CIP = Capital Improvement Program SAMP = Sustainable Airport Master Plan SEA = Seattle-Tacoma International Airport 37 Mega Projects Drive Capital Program $ in Millions 981 1,000 837 900 800 911 712 700 703 656 710 585 600 500 408 400 300 302 296 2035 2036 200 100 - 2026 2027 2028 Mega • • • • 2029 2030 $100-$300 budget 2031 $20-$100 budget 2032 2033 < $20 budget 2034 CIP Reserves Total 2027-2036 mega projects of $3.5B include Baggage Optimization, South Concourse Evolution and Airfield Pavement, and Main Terminal Renovation, and projects closeout of C Concourse, SEA Gateway. 10-year CIP Reserves of $1.3B Spending forecast includes Sustainable Airport Master Plan Preliminary Planning & Design for $290M Excludes other divisions' projects funded by the airport CIP = Capital Improvement Program SAMP = Sustainable Airport Master Plan SEA = Seattle-Tacoma International Airport 38 2027-2036 Capital Forecast Categorization Category Business Need 2% Total 10-year Cash Flow* Regulatory & Contractual $1.1B Renewal & Replacement $3.5B Business Needs $116M Noise $38M SAMP Design Pre-approval in SLOA $290M Reserves & Small Capital $1.3B TOTAL $6.4B Reserves & Allowances 20% Noise 1% Regulatory 18% SAMP Design 4% Renewal & Replacement 55% *Excludes other divisions' projects funded by the airport CIP = Capital Improvement Program SAMP = Sustainable Airport Master Plan SLOA = Signatory Lease & Operating Agreement 39 Capital Project Counts by Year Number of active capital projects 70 CURRENT YEAR 2026 93 Active CIP Projects Baseline for the five-year forecast • • • • 63 60 50 16 16 40 30 20 Totals for year 49 37 16 47 14 33 21 10 25 12 11 0 2027 18 2028 2029 2030 Current CIP Projects Proposed 2027 PoF Projects 6 2031 Total active projects fall from 93 in 2026 to 63 in 2027 and 18 by 2031 Current CIP projects decline as the existing program closes out 47 in 2027 to 6 in 2031 Proposed 2027 POF projects hold steady at 16 per year through 2029, then taper to 12 in 2031 Proposed 2027 POF project count excludes, reserve CIPs, fleet purchase program and purchase of rental car facility EV buses. CIP = Capital Improvement Program EV = Electric Vehicle POF = Plan of Finance SEA = Seattle-Tacoma International Airport 40 Summary of 2026 Mid-year Projects • 70% Renewal Replacement / 30% Business Needs • 12 new capital projects totaling $24M over 2026-2031 41 Summary of 2027 Proposed New Projects • Renewal & Replacement 89% / Business Needs 11% • 22 new capital projects totaling $350M (2027-2034) 42 Aviation 2027-2036 Capital Key Takeaways Financial Forecast • Steady non-aero revenue growth; future risk from tenant turnover & capital • Debt service coverage: 1.56x (2027) • 18 months of O&M cash on hand • CPE: $23.56 (2027) CPE = Cost Per Enplanement O&M = Operating & Maintenance Capital Forecast • $6.4B capital spending over 10 years • 22 new capital projects totaling $350M over ten years 43 QUESTIONS? 44 APPENDIX - AVIATION DIVISION 45 Aviation Appendix Table of Contents 1. Operating Budget  2027 Proposed Budget Request Listings  Aeronautical Business Detail  Non-Aeronautical Business Detail  Capital and Financial Forecast Detail 2. Other Supporting Information  Aviation Historical FTE Trend  Historical Charges from Other Divisions  Planning Studies Detail  Preconditioned Air Projects  Environmental Remediation Liability Detail  Acronym List FTE = Full-Time Equivalent 46 2027 PROPOSED BUDGET REQUESTS 47 Budget Requests: Asset & Financial Stewardship Budget Request $000s Baseline Non-Baseline Total Expense Items with Capital Projects $0 $2,181 $2,181 Tenant Project Management Support - Tenant/ADR $0 $1,855 $1,855 Pavement Management Plan $0 $460 $460 2027 New Air Service Incentives $0 $350 $350 New T2 Credit Card Readers Fee $265 $0 $265 2027 Baker Tilly PFC and Single Audit Fees $190 $0 $190 2027 SEA BIM Model $0 $168 $168 STOC Tenant Incentives Allowance $0 $100 $100 2027-2030 Airfield Projects $0 $90 $90 SCE Project - Parts Budget for 24 New Cobus buses $75 $0 $75 2027 Financial Consulting $0 $50 $50 Capital Project Management Support $0 $6,460 $6,460 Capital Project Management Support - Offset $0 ($6,460) ($6,460) TOTAL $530 $5,253 $5,783 ADR = Airport Dining & Retail BIM = Building Information Modeling PFC = Passenger Facility Charge SCE = South Concourse Evolution SEA = Seattle-Tacoma International Airport STOC = SeaTac Office Center 48 Budget Requests: Health, Safety, and Security Budget Request $000s Baseline Non-Baseline Total $4,830 $0 $4,830 Self Contained Breathing Apparatus (SCBA) Replacement $0 $750 $750 Fire Alarm System Upgrade $0 $265 $265 Airfield Study $0 $200 $200 GSE Tracking & Congestion Enforcement $200 $0 $200 Safedock Lasers $196 $0 $196 Snow Removal Vendor Contract $165 $0 $165 Fire Alarm Equipment $80 $36 $116 Structural Consultant Services $100 $0 $100 Airfield Herbicide Project $100 $0 $100 CBP X-Ray Service Plan - US Testing $55 $0 $55 X-Ray Machine Repair - South Employee Screening $0 $50 $50 IDS5 Workstation Communications Software $35 $0 $35 $5,761 $1,301 $7,062 STAC/TSA Staffing - Exit Lane Coverage & Divesting TOTAL CBP = US Customs & Border Protection GSE = Ground Service Equipment STAC = Sea-Tac Airline Consortium TSA = Transportation Security Administration 49 Budget Requests: Employee Engagement / Sustainability & Community Employee Engagement $000s Baseline Non-Baseline Total Workforce Childcare Bridge Strategy - Commission Priority $0 $200 $200 EMPLOYEE ENGAGEMENT TOTAL $0 $200 $200 Baseline Non-Baseline Total Part 150 Noise and Land Use Compatibility Study $0 $1,400 $1,400 Clean Buildings Energy Efficiency Measures $0 $700 $700 TNC EV Charging $311 $0 $311 Sustainable Airport Master Plan (SAMP) Near Term Project (NTP) Environmental Review $0 $300 $300 Electrical Demand/Supply Study $0 $300 $300 PFAS Pilot Study $0 $200 $200 Programmatic 6pppd-q Biological Analysis for SEA Projects $0 $60 $60 Salmon Safe Certification Renewal $0 $35 $35 SUSTAINABILITY & COMMUNITY TOTAL $311 $2,995 $3,306 Sustainability & Community ADR = Airport Dining & Retail EV = Electric Vehicle $000s PFAS = Perfluoroalkyl and Polyfluoroalkyl Substances SEA = Seattle-Tacoma International Airport TNC = Transportation Network Companies 50 AERONAUTICAL BUSINESS 51 Aeronautical Business • Cost recovery of aeronautical operating and capital expenses o Per FAA regulations - Revenue use policy: all airport revenue must be used to support the operating and capital costs of the airport - Rates and Charges policy guides aeronautical rate setting >> Airline rates must be fair, reasonable and not unjustly discriminatory >> Airfield rates must be based on cost recovery >> Airports may set airline rates by resolution, ordinance or agreement o Based on Signatory Lease & Operating Agreement (SLOA) - Signatory Lease & Operating Agreement (SLOA V runs from 2025 - 2034) o Positive cash flow after paying debt service due to amortization of cash funded capital projects • Charge airlines for space and/or activity • Cost per enplanement (CPE) is a key management metric • Cost increases reflect growth in rate based operating expenses and debt service on new assets placed in service. As a result, CPE increased by 11% in the 2027 Budget. CPE = Cost Per Enplanement FAA = Federal Aviation Administration SLOA = Signatory Lease & Operating Agreement 52 Aeronautical Rate Base Revenues Revenue Category Description Aeronautical Fee/Rate Examples Airfield Movement Area Runways, taxiways, landing areas and related support facilities (field lighting, navigational aids) Landing Fees Airfield Apron Area Paved ramp/taxi lanes around the terminal used for aircraft parking and ground service equipment Apron Fees Terminal Rents Airline-leased terminal space: gates, ticket counters, baggage areas, offices, security checkpoint areas & lounges Terminal Rental Rates Federal Inspection Services The International Arrivals Facility space used to process and clear arriving international passengers FIS Fee Airfield Commercial Area Land, ramps and facilities outside the movement area used mainly for cargo and aircraft maintenance Cargo & Aircraft Maintenance Area Fees FIS = Federal Inspection Services (US Customs) 53 Aeronautical Cost Drivers Aeronautical Cost Drivers ($ in 000's) (1) O&M Debt Service Before Offsets Debt Service PFC Offset Net Debt Service Amortization Space Vacancy Cost of Incentives Grants and Other Rate Base Revenues Commercial area Total Aero Revenues 2026 Budget 377,634 277,614 (92,468) 185,146 33,685 (2,710) (1,194) (563) 591,999 25,787 617,786 2026 Revised Bud 378,417 277,614 (92,468) 185,146 33,685 (2,714) (1,196) (563) 592,777 25,787 618,565 2027 Proposed Budget 395,799 320,081 (92,758) 227,324 37,997 (3,090) (1,789) (1,250) 654,991 28,958 683,949 Incr (Decr) Change from Bud $ 18,166 42,467 (290) 42,177 4,311 (380) (595) (688) 62,992 3,170 66,163 % 4.8% 15.3% 0.3% 22.8% 12.8% 14.0% 49.8% 122.2% 11% 12% 11% (1) O&M, Debt Service Gross, and Amortization do not include commercial area costs or the international incentive expenses O&M = Operating & Maintenance PFC = Passenger Facility Charge 54 Cost per Enplanement (CPE) Metric Airline cost per enplanement reflects the overall cost to the airlines for each passenger enplaned. The CPE measures the total costs borne by the passenger airlines operating at the airport divided by the number of enplaned passengers (roughly half of the total passengers). 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Actual 2026 Revised Budget 2027 Budget Cost per $15.93 Enplanement $16.09 $17.52 $18.14 $19.06 $21.19 $23.56 CPE = Cost Per Enplanement 55 Cost per Enplanement at Other Airports Airport (Large Hub) DEN* SEA* PDX SFO* ORD* LAX* 2027 CPE Forecast 16.75 23.56 28.00 29.44 30.67 42.85 * Sources: 2027 Budget documents or Preliminary Official Statement on bond issuance CPE = Cost Per Enplanement Forecast = Snapshot in Time SEA = Seattle-Tacoma International Airport 56 NON-AERONAUTICAL BUSINESS 57 Non-Aeronautical Business • Non-Aeronautical lines of business include: o Pre-security: Public Parking, Rental Cars, Taxis & other Ride Share vehicles, Airport Conference Center, Real Estate leases o Air Terminal: Dining & Retail, Port-owned Clubs, Other leased space • Most rates are set based on fair market value • Some rates are set based on cost recovery • e.g., Select Ground Transportation Operators • Non-Aeronautical lines of business generate cash flow used to reinvest in the Airport 58 Non-Aeronautical Gross Revenues 2026 Revised to 2027 Budget Revenues ▲ 4.4% +$15.6M 2027 revenue is 45% above the 2019 prepandemic level 2027 gross revenue is budgeted at $13.75 per enplanement CFC = Customer Facility Charge GASB = Governmental Accounting Standards Board  All Totals Adjusted to Excludes CFCs Non-Operating Revenues (GASB 103) 59 Non-Aero Operating Revenues Revenue Summary by Dept. (in $000s) 2024 2025 Full Year Full Year 2026 Full Year 2027 Full Year 27 Budget vs. '26 Revised Budget 27 Budget vs. '26 Forecast Actual Actual Forecast Revised Budget Proposed Budget $ Var % Var $ Change % Change 0 116,983 67,479 12,540 24,376 221,378 18,642 10,174 8,584 19,515 56,915 73,770 1 205 73,989 352,281 0 10,934 717 118,419 45,624 14,092 23,758 202,610 22,786 12,214 9,481 19,292 63,773 77,948 1,919 200 80,067 346,450 0 11,427 717 114,531 43,555 14,138 24,896 197,837 20,475 11,712 8,157 16,153 56,497 77,596 503 228 78,327 332,661 0 11,427 870 124,929 46,478 16,724 28,514 217,516 21,716 12,277 9,727 10,531 54,252 69,182 1,687 220 71,090 342,858 0 13,613 153 10,399 2,924 2,586 3,619 19,679 1,240 566 1,571 (5,622) (2,245) (8,413) 1,184 (8) (7,237) 10,197 21.3% 9.1% 6.7% 18.3% 14.5% 9.9% 6.1% 4.8% 19.3% -34.8% -4.0% -10.8% 235.2% -3.5% -9.2% 3.1% 153 6,510 854 2,632 4,757 14,906 (1,070) 63 247 (8,761) (9,521) (8,765) (232) 20 (8,977) (3,593) 21.3% 5.5% 1.9% 18.7% 20.0% 7.4% -4.7% 0.5% 2.6% -45.4% -14.9% -11.2% -12.1% 10.0% -11.2% -1.0% Utilities and Other 0 116,567 64,434 10,464 23,946 215,411 17,645 0 7,559 16,694 41,898 72,246 902 252 73,415 330,724 0 9,636 2,186 19.1% 2,186 19.1% Total Non-Aeronautical Revenue 340,360 363,215 357,877 344,087 356,471 12,383 3.6% (1,407) -0.4% Total Enplanements O&D Enplanement International Enplanements 26,295 18,354 3,276 26,317 18,316 3,528 26,500 18,471 3,684 27,031 18,760 3,819 26,890 18,716 3,813 (141) (44) (7) -0.5% -0.2% -0.2% 390 245 129 1.5% 1.3% 3.5% Non-Aero Operating Revenue Subtotal Last refresh: 9/29/2026 3413-Transportation Mgmt Assoc 3420-Public Parking 3430-Rental Cars 3440-Employee Parking 3450-Ground Transportation O3400-Landside 3630-Non-Aero Commercial Properties 3635-SeaTac Office Center 3645-Non-AirlineTerminal Leased Spc 3690-Club International Lounge O3600-Airport Properties 3650-Airport Dining and Retail 3653-Tenant Marketing 4572-Conference Center O3500-AV Commercial Management Non-Aero Operating Revenue Subtotal GASB 103 Adj (CFC to Non-Op) 3430-Rental Cars O3400-Landside Non-Aero Operating Revenue Subtotal Total Non-Aeronautical Revenue 43,557 194,535 309,847 319,483 44,382 198,281 329,185 340,118 45,624 202,610 346,450 357,877 43,555 197,837 332,661 344,087 46,478 217,516 342,858 356,471 2,924 19,679 10,197 12,383 6.7% 9.9% 3.1% 3.6% 854 14,906 (3,593) (1,407) 1.9% 7.4% -1.0% -0.4% Key Messages • Total Non-Aero: +$12.4M, or +3.6% vs. 2026 Revised Budget • Landside: +$19.7M, or +9.9% vs. 2026 Revised Budget • Public Parking +$10.4M vs. Budget, driven by rate increase • Rental Cars +$2.9M; (transactions up +0.4%, average ticket +6.6%) • Business & Properties: ($2.2M), or (4.0%) vs. 2026 Revised Budget • Comm Properties +$5.0M, driven by Flight Kitchens and Des Moines Creek West land rent but partially offset by ($3.8M) GASB 87 accounting entry • Clubs & Lounges ($5.6M); S Lounge Feb closure for SCE • Commercial Management: ($7.2M), or (9.2%) vs. Revised 2026 Budget • ADR ($8.4M), driven by construction impacts • Tenant Marketing +$1.2M, driven by restarting collections in 2026 • Utilities/Other: +$2.2M, or +19% vs. 2026 Revised Budget • Utilities +$1.6M, or +15% driven by increased costs ADR = Airport Dining & Retail CFC = Customer Facility Charge GASB = Governmental Accounting Standards Board O&D = Origin & Destination  Includes GASB 87 lease interest payments reporting adjustments 60 Non-Aero Revenue Walk to 2027 Budget Consolidated Non-Aero Revenue - Walk from 2026 Forecast to 2027 Budget $380M $370M $360M $2.6M $6.5M $357.9M $4.8M ($8.9M) ($8.8M) $350M $5.7M $356.5M All Other Non-Aero 2027 Budget ($3.3M) $340M $330M $320M $310M $300M 2026 Forecast Public Parking Employee Parking ADR Ground Transportation Clubs & Lounges GASB 87 2027 Non-Aero Revenues expected to be lower than 2026 forecast by ($1.4M) / (0.4%), but higher than 2026 budget by +$12.4M / +3.6% • Growth for Public Parking and Employee Parking (in addition to Master Park lot availability) driven by rate increases • Construction impacts (SCE, Conc A Duty-Free expansion, TASCR) reducing ADR and Clubs & Lounges revenue • Ground Transportation growth driven by TNCs (EV discounting phasing), TNC/Taxi EV charging and P2P car sharing • All Other Non-Aero growth driven primarily by Business & Properties land leases and Utilities ADR = Airport Dining & Retail EV = Electric Vehicle P2P = Peer-to-Peer SCE = South Concourse Evolution TASCR = Tenant ADR Shell & Core Renovation TNC = Transportation Network Companies 61 Non-Aero Revenue Recovery as % of 2019 Actual Growth outpacing passenger volume recovery 200% 180% Parking 152% 160% Rental Car, 149% 140% Ground Transportation 137% 120% 100% Airport Dining & Retail 114% 80% Clubs & Lounges, 103% 60% Enplanements 104% 40% 20% 0% 2019 Actual Parking 2020 Actual Rental Car 2021 2022 Actual Actual Ground Transportation GASB = Governmental Accounting Standards Board 2023 2024 Actual Actual Airport Dining & Retail 2025 2026 Actual Forecast Clubs & Lounges 2027 Budget Enplanements Non-Aero Revenue excludes GASB 87 reporting adjustments 62 BUSINESS & PROPERTIES DETAIL 63 Walk to AVBP 2027 Revenue Budget Revenue Excludes GASB 87 Reporting Adjustments Airport Business & Properties - Walk from 2026 Forecast to 2027 Budget $80M $75M $70M $0.9M $2.4M $70.7M $65M ($8.8M) ($0.6M) Clubs & Lounges Sky Chefs rent $0.0M $64.6M Net of All Other Leases 2027 Budget $60M $55M $50M • 2026 Forecast DMCBP West Flight Kitchens 2027 AVBP Revenues are expected to come in ($6.0M) / (8.5%) below the FY26 Forecast (+$1.2M / +2.0% above the 2026 Revised Budget). Growth driven primarily by DMCBP West and Flight Kitchens, offset by Clubs & Lounges. - - - - $2.4M DMCBP West - rent moves from construction rent to full rent in Q4 2026; growth driven by annualization of full rent $0.9M Flight Kitchens - driven by inflation and international enplanement growth ($8.8M) Clubs & Lounges - SCE expected to close S Lounge in Q1 of 2027 ($0.6M) Sky Chefs rent - tenant moving to new location outside of Port property in 2027 AVBP = Aviation Business & Properties DMCBP = Des Moines Creek Business Park GASB = Governmental Accounting Standards Board SCE = South Concourse Evolution AVBP Revenue excludes GASB 87 reporting adjustments 64 Non-Aeronautical - Airport Properties Revenue Commercial Real Estate (Other Airport Properties) Revenues - includes STOC property acquisition; primarily fixed rates per sq. ft. and therefore relatively unaffected by COVID-19 passenger volume declines/recovery. Airport Properties Segment Revenues by Year $35M $30M Flight Kitchen Revenue - Closely tied to passenger volume. Revenue growth reflects both strong demand and upward pressure on prices which is reflected in concession fees on higher gross sales. $25M $20M $15M $10M $5M 2019 2020 Flight Kitchens 2021 2022 2023 Clubs & Lounges 2027 Combined: 100.5% above 2019 GASB = Governmental Accounting Standards Board STOC = SeaTac Office Center 2024 CLEAR 2025 2026 (F) 2027 (B) Other Airport Properties CLEAR Revenue - Concession fee on CLEAR memberships were relatively unaffected by passenger volume decline/recovery. These memberships provide expedited access to other large venues, in addition to airport checkpoint queuing. Third-Party Operated Lounges - Although recovered slower post-pandemic, demand continues to grow, and long-term outlook remains strong with increased demand from growing international enplanements. Future revenues will be temporarily impacted by construction-driven closures. AVBP Revenue excludes GASB 87 reporting adjustments 65 AV Business & Properties Revenue Revenue Excludes GASB 87 Reporting Adjustments Commercial Properties: +$2.7M, +12% vs. 2026 forecast • • • +$1.9M Land / Space rent • • +$2.4M Des Moines Creek West property annualization ($29K/mo. construction rent ends in Q3 2026 and increases to $292K/mo. full rent) ($0.6M) Sky Chefs moving into new facility outside of Port property +$0.9M Flight Kitchens concessions, +4%; driven by +3.5% CPI/inflation and +0.5% enplanements (+1.3% total enplanement growth, but adjusted down slightly for mix - Asia long-haul flights provide more revenue than Europe or US domestic flights) Land and space rent budget based on contracted terms in lease STOC: ($0.1M), (1%) vs. 2026 forecast • • • +$0.1M Rent - rental income remains steady compared to 2026 ($0.2M) Parking revenue Rent budget based on lease terms and projected renewal rates for expiring agreements Non-Airline Terminal Lease: +$0.2M, +2% vs. 2026 forecast • • +$0.3M rent - terminal lease rate increase ($0.1M) Clear; 2026 Q2 forecast overstated, +8% monthly growth assumption before new agreement effective • +$80K vs. revised 2026 forecast (not yet published) - assumes +2% monthly growth for remainder of 2026 and +2% 2027 growth Clubs & Lounges: ($8.8M), (45%) vs. 2026 forecast • • +$1.2M A Lounge - S Lounge migration, increased capacity with new location; +9% increase in guest visits for the A lounge ($10.0M) S Lounge closure for SCE CPI = Consumer Price Index GASB = Governmental Accounting Standards Board SCE = South Concourse Evolution STOC = SeaTac Office Center 66 COMMERCIAL MANAGEMENT DETAIL 67 Walk to Airport Dining & Retail 2027 Revenue Budget Revenue Excludes GASB 87 Reporting Adjustments • 2027 ADR Revenues are expected to come in ($8.8M) / -11.2% below the FY26 Forecast and ($8.0M / -10.2%) below the 2026 Budget. Decrease primarily driven by TASCR and SCE closures. ADR = Airport Dining & Retail GASB = Governmental Accounting Standards Board SCE = South Concourse Evolution TASCR = Tenant ADR Shell & Core Renovation 68 Non-Aeronautical - Airport Dining & Retail Revenue Airport Dining & Retail - ADR performance continues to stabilize, with several segments exceeding pre-pandemic activity. As we enter 2027, construction in key concourses is expected to moderate revenues by restricting space and reducing exposure to passenger traffic. Duty Free Revenue - has steadily improved with the recovery in international travel. In 2027, the planned closure of the South Concourse Duty Free location will drive a temporary decline, partially offset by limited interim offerings. Food & Beverage - has seen a strong rebound as passenger activity increases. In 2027, South Concourse construction and TASCR impacts will dampen steady growth experienced in recent years. Retail Revenue - has shown resilience and consistent demand from travelers. In 2027, TASCR will close several convenience retail stores, creating significant temporary impact. Advertising - continues to perform well, building on several strong years. Excluding the one-time FIFA activity in 2026, Clear Channel revenue is anticipated to show modest underlying growth. 2027 Combined: 14.2% above 2019 ADR = Airport Dining & Retail FIFA = Fédération Internationale de Football Association Service Revenue - has improved gradually with international travel. Updated lease terms for the foreign currency vendor reduce concession fees and temper revenue. GASB = Governmental Accounting Standards Board AVCM Revenue excludes GASB 87 TASCR = Tenant ADR Shell & Core Renovation reporting adjustments 69 Other Commercial Management Revenue • Tenant Marketing Fund resumed collections February 2026. While 2027 budgeted collections fall slightly below 2026 Forecast ($231K or -12.1%), collections will be higher than 2026 Budget (+$1.2M or +235%) • Conference Center revenue is planned to be $220K in the 2027 Budget, an increase of $20K, or 10%, above the current year forecast for 2026 - Approximately 69% of business in the Airport Conference Center is for internal Port meetings (not revenue generating) and 31% of the Conference Center business activity is external (revenue-generating). 70 LANDSIDE DETAIL 71 Walk to 2027 Landside Revenue Budget Revenue Excludes GASB 87 Reporting Adjustments • 2027 Landside Revenues are expected to be $14.8M / 7.2% above the 2026 Forecast. Growth driven by rate increases, the opening of lots A&C, and the launch of both the TNC / taxi EV charging service and the peer-to-peer car sharing program. EV = Electric Vehicle GASB = Governmental Accounting Standards Board TMA = Transportation Management Association TNC = Transportation Network Companies 72 Landside Revenue Recovery Parking is the largest source of Non-Aero revenue at the airport. • Demand for self-parking remained relatively high during the pandemic • Strong revenue recovery reflects continued preference for close-in parking, as well as parking rate increases (prior increases implemented in 2019, 2022, & 2023) Rental Cars - Limited vehicle availability since 2020 drove higher concession fees on lower activity volume. This has stabilized, and we expect for rental rates to increase in 2027, with transaction growth also stabilizing. Ground Transportation - Slower recovery path reflected a longer timeline for customer preference to shift back to shared ride options, though now largely recovered 2027 Combined: 50.3% above 2019 GASB = Governmental Accounting Standards Board NEPL = North Employee Parking Lot Employee Parking - Cost recovery revenue now reflects NEPL and Lots A&C Landside Revenue excludes GASB 87 reporting adjustments 73 2027 Public Parking Revenue • Parking Revenue is expected to be $124.9M, an increase of $7.9M, or 6.7%, compared to 2026 -Demand for Public Parking is expected to continue being split in 2026 • Drive-Up Transactions: 1.77M, decreasing (99K, ~5.3%) under 2026 • Reserved Transactions: 98K, increasing 4.7K, 5.0% over 2026 -Reserved Parking program launched in March 2024 on Floor 4 has seen high utilization. Occupancy rate has averaged ~92% since its launch. Expansion to half of Floor 5 is planned to open in October 2026 and has been added into budget for 2027. 74 Public Parking Transactions • Public Parking transactions are expected to decrease by (-94K, -4.8%) under the 2026 Forecast - Reserved Parking transactions are expected to continue to grow in 2027 with the expansion to half of the 5th floor 75 2027 Public Parking Rates Planned Implementation January 1, 2027 Type Current Rate Proposed Rate $ Increase % Increase Reference 2023 Rate % / $ Increase Hourly $8 $9 $1 12.5% 33% ($2) Daily $37 $42 $5 13.5% 9% ($3) Weekly 1 $222 $273 $51 23% 31% ($53) Hourly 2 $10 Eliminate Daily $47 $52 $5 10.6% 12% ($5) Weekly $329 $364 $35 10.6% 12% ($35) Passport Parking Monthly $500 $590 $90 18% 18% ($75) Passport Gold Parking Monthly $1000 $1180 $180 18% New Program 2023 Product General Parking (Drive-up Parking: Levels 1-3, 5-8) Reserved Parking (Online Reservations: Levels 4-5) (Monthly Parking: Levels 1-3, 5-8) (Monthly Parking: Level 4) 43% ($3) • Last SEA Airport Public Parking rate increase - June 1, 2023. • Rate increases help to maintain fair market rates and keep pace with local inflation and annual City of SeaTac Parking Tax. Seattle-Tacoma-Bellevue CPI-W has increased 10.5% since last rate increase. • Rates are inclusive of all taxes and fees, including EST 2027 City of SeaTac Commercial Parking Tax of $4.41 per transaction and 10.45% WA State Sales Tax. 1. General Parking Weekly Rate: Reduction in weekly discounted rate from 1 day free to 0.5 day free (6.5 days). Goal to eliminate weekly discounted rate in 2029. 2. Reserved Parking Hourly Rate: Elimination of hourly rates for exception pulled tickets (OPS assisted transactions) and all RP overstay transactions (for time over initial reservation period). CPI = Consumer Price Index SEA = Seattle-Tacoma International Airport 76 Public Parking Rate Increase Summary Public Parking Garage Tariff Parking Rate Change Summary General Parking Hourly Daily Weekly Hourly Daily Weekly Reserved (previously Terminal Direct) Hourly Daily Weekly Hourly Daily Weekly 2007 2010 2017 2019 2022 2023 2024 2025 2026 2027 $ 2.00 $ 3.00 $ 4.00 $ 5.00 $ 6.00 $ 8.00 $ 8.00 $ 8.00 $ 8.00 $ 9.00 $ 26.00 $ 28.00 $ 30.00 $ 32.00 $ 34.00 $ 37.00 $ 37.00 $ 37.00 $ 37.00 $ 42.00 $130.00 $130.00 $140.00 $149.00 $169.00 $222.00 $222.00 $222.00 $222.00 $273.00 50% 8% 0% 33% 7% 8% 25% 7% 6% 20% 6% 13% 33% 9% 31% 0% 0% 0% 0% 0% 0% 0% 0% 0% 13% 14% 23% 2007 2010 2017 2019 2022 2023 2024* 2025 2026 2027 $ 4.00 $ 4.00 $ 5.00 $ 6.00 $ 7.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 N/A $ 35.00 $ 35.00 $ 37.00 $ 39.00 $ 42.00 $ 47.00 $ 47.00 $ 47.00 $ 47.00 $ 52.00 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0% 0% 25% 6% 20% 5% 17% 8% 43% 12% N/A 0% N/A 0% N/A 0% N/A 11% *Terminal Direct converted to Reserved Parking in late 2023, rate subject to demand-based adjustments 77 2027 Other Landside Revenue Revenue Excludes GASB 87 Reporting Adjustments • Rental Car Revenue is expected to be $48.0M, an increase of $0.5M, 1.0% over 2026 • Employee Parking Revenue is expected to be $15.9M, an increase of $1.7M, 12.2% over 2026. • Ground Transportation Revenue is expected to be $28.5M, an increase of $3.6M, 14.5% over 2026 - Concession Revenue: $43.1M, increasing $0.5M, 1.0% over 2026 • Average rental rates stabilized in 2026 with anticipated modest growth in 2027; transactions growing with O&D enplanements - CFC rate is expected to increase by $0.25 in 2027 to $8.25 - Rate increase from $107/ month to $114/ month. - Budget has MasterPark lots A&C budgeted for all of 2027 - No revenue planned from MasterPark lot M in 2027 - TNC: $19.1M, increasing $1.5M, 8.7% over 2026 • Primary Driver of Revenue Increase: Beginning the phase out of the drop-off EV discount • TNC Activity expected to slightly outpace Enplanement growth - Total Expected Trips: 4.7M, up 2.0% from 2026 - On-Demand Taxi: $2.9M, decreasing (-$55K), (-1.8%) from 2026 • Total Expected Trips: 489K, down (-1.8%) from 2026 - New TNC/ Taxi EV Charging Service: $2.3M in 2027 - New Peer-to-Peer Car Sharing Program: Concessions of $1.0M in 2027 CFC = Customer Facility Charge EV = Electric Vehicle GASB = Governmental Accounting Standards Board O&D = Origin & Destination RCF = Rental Car Facility TNC = Transportation Network Companies 78 CAPITAL AND FINANCIAL FORECAST 79 2027-2036 Financial Forecast Metrics Budget 2027 Key Measures Debt Service Coverage ADF Balance - Months of O&M CPE O&M per Enplaned Passenger Debt per Originating Passenger PFC fund balance (in $000's) CFC fund balance (in $000's) New Debt Service (in $000's) Capital Spending (in $000's) Capital Spending ADF (in $000's) Activity Enplaned Passengers(000's) Enplanement Growth Rate • $ $ $ $ $ $ $ $ 1.56 18 23.56 22.40 294 52,358 61,220 856,037 150,558 26,890 1.3% Forecast 2028 $ $ $ $ $ $ $ $ 1.63 18 26.01 23.44 325 52,162 57,377 85,853 1,009,703 150,149 27,279 1.4% Forecast 2029 $ $ $ $ $ $ $ $ 1.62 18 28.34 24.53 348 52,753 42,436 141,976 930,915 179,361 Forecast 2030 $ $ $ $ $ $ $ $ 27,497 0.8% 1.58 18 30.12 25.66 365 21,241 45,978 195,248 714,937 182,126 27,717 0.8% Forecast 2031 $ $ $ $ $ $ $ $ 1.52 18 32.40 26.88 377 11,771 54,625 244,348 668,185 181,369 27,911 0.7% Forecast 2032 $ $ $ $ $ $ $ $ 1.52 18 34.03 27.99 390 11,788 54,149 292,384 718,329 197,118 28,135 0.8% Forecast 2033 $ $ $ $ $ $ $ $ 1.52 18 35.39 29.01 394 17,026 52,743 328,770 593,825 210,069 Forecast 2034 $ $ $ $ $ $ $ $ 28,360 0.8% 1.51 18 36.97 30.22 387 13,417 59,800 356,500 415,920 209,881 28,586 0.8% Forecast 2035 $ $ $ $ $ $ $ $ 1.53 18 38.41 31.48 371 13,123 65,990 368,691 309,265 228,755 28,815 0.8% Forecast 2036 $ $ $ $ $ $ $ $ 1.54 18 39.49 32.79 353 17,047 71,431 376,851 302,521 233,753 29,046 0.8% Debt Service Coverage is based on the Airport only calculation per Signatory Lease & Operating Agreement (SLOA). ADF = Airport Development Fund CFC = Customer Facility Charge CPE = Cost Per Enplanement O&M = Operating & Maintenance PFC = Passenger Facility Charge SLOA = Signatory Lease & Operating Agreement 80 2027-2036 Financial Forecast Budget 2027 In $000's Aeronautical Revenue Non-Aeronautical Revenue Total Operating Revenue GASB 87_96_103 Revenues Total Operating Revenue with GASB Comparable Basis Operating Expense Net Operating Income 3 Net Non-Operating Income/Expense GASB 87_96_103 Expenses CFC Excess Available for Debt Service $ $ $ $ $ Forecast 2029 Forecast 2030 Forecast 2031 Forecast 2032 Forecast 2033 Forecast 2034 Forecast 2035 Forecast 2036 683,949 $ 356,471 1,040,419 $ 13,195 1,053,614 $ 759,636 $ 392,847 1,152,483 $ 1,152,483 $ 833,338 $ 420,789 1,254,127 $ 1,254,127 $ 602,382 451,232 $ 59,797 (15,955) 639,513 512,970 $ 47,245 (14,025) 674,466 579,661 $ 42,723 (11,539) 711,342 614,711 $ 45,552 (9,772) 750,246 668,392 $ 48,955 (9,547) 787,558 704,778 $ 51,230 (9,771) 822,736 732,924 $ 52,433 (9,954) 863,873 762,720 $ 53,832 (10,201) 907,066 810,594 $ 55,289 (10,311) 952,420 821,630 56,995 (10,433) (12,913) 482,162 $ (12,912) 533,278 $ (12,911) 597,935 $ (12,910) 637,581 $ (12,909) 694,891 $ (12,908) 733,329 $ (12,907) 762,497 $ (12,906) 793,445 $ (12,905) 842,667 $ (12,904) 855,289 455,890 $ 3,080 $ (26,187) (104,950) 327,833 $ 509,296 $ 3,080 $ (33,882) (104,995) 373,499 $ 575,911 $ 3,080 $ (34,145) (137,945) 406,902 $ 605,920 $ 3,080 $ (32,264) (116,288) 460,449 $ 624,766 $ 3,080 $ (34,730) (107,548) 485,569 $ 641,372 $ 2,617 $ (34,999) (103,185) 505,805 $ 674,419 $ 2,617 $ (35,273) (112,958) 528,805 $ 700,723 $ 2,617 $ (35,552) (110,476) 557,313 $ 703,398 2,617 (35,828) (107,134) 563,053 205,445 $ 224,435 $ 230,679 $ 234,443 $ 247,760 $ 256,692 $ 264,640 $ 285,354 $ 292,236 Gross Debt Service (net of cap i) CP Principal & Interest CFC Offset PFC Offset Net Debt Service $ 430,614 $ 3,034 $ (24,576) (100,000) 309,072 $ Net Cash Flow $ 173,089 $ • • • • $ $ Forecast 2028 891,460 $ 962,578 $ 1,017,337 $ 1,064,813 $ 1,121,472 $ 1,173,095 $ 1,214,358 434,593 456,060 474,999 490,847 505,121 544,565 559,691 1,326,053 $ 1,418,638 $ 1,492,336 $ 1,555,660 $ 1,626,593 $ 1,717,660 $ 1,774,050 1,326,053 $ 1,418,638 $ 1,492,336 $ 1,555,660 $ 1,626,593 $ 1,717,660 $ 1,774,050 Aeronautical revenues forecast higher debt service when projects are completed. Consistent non-aero revenue growth but future impacts from tenant turnover and capital projects. Average annual net debt service is projected to grow by 18% due to growth in capital expenditures. Includes other divisions' projects funded by the airport ADF = Airport Development Fund CFC = Customer Facility Charge CP = Commercial Paper PFC = Passenger Facility Charge GASB = Governmental Accounting Standards Board 81 2027-2036 Non-Aero Remaining Revenue Forecast Non-Aero Revenues Public Parking Employee Parking includes TMA Rental Car 1 Ground Transportation Concessions 1 Tenant Marketing Budget Forecast Forecast 2027 2028 2029 138,258 21,615 50,990 35,234 142,573 24,441 52,007 35,625 29,775 15,622 103,558 2,257 31,131 16,030 112,729 2,323 32,161 16,320 9,727 10,531 12,140 220 1,473 356,471 13,195 369,666 9,762 10,462 11,367 227 445 392,847 392,847 10,054 10,546 11,905 234 467 420,789 420,789 10,356 11,961 12,472 241 490 434,593 434,593 Non-Aero Operating Expenses GASB 87_96_103 Expenses Total Non-Aero Operating Expenses GASB Comparable Basis (193,675) (8,056) (201,731) (205,557) (8,474) (214,031) (216,815) (8,664) (225,479) Non-Aero Net Income 167,935 178,816 27,370 (12,913) (60,331) (45,873) 122,062 $ 27,302 (12,049) (72,363) (57,110) 121,705 $ 1 Non-Airline Terminal Leased Space Club International Lounge Utilities Airport Conference Service Orgs Total Non-aero Operating Revenues GASB 87_96_103 Revenues2 Total Operating Revenues GASB Comparable Basis 3 CFC Operating Revenue Less: CFC Excess Non-Aero Debt Service Total Non-aero Other Costs and Income Non-Aero Remaining Revenues $ 1 Excludes GASB 87 revenues classified in non-operating revenues. 2 Lease Interest Income is included in the GASB 87 Revenues 3 CFC Operating Revenue as non-operating account. CFC = Customer Facility Charge CP = Commercial Paper 129,773 17,588 48,797 31,860 69,182 1,687 85,220 1,949 21,716 12,277 Forecast 2031 133,948 19,398 49,949 34,817 101,209 2,200 30,348 15,714 Commercial Properties 1 International Place Office 124,929 17,594 46,478 28,514 Forecast 2030 Forecast 2032 Forecast 2033 Forecast 2034 Forecast 2035 Forecast 2036 147,164 26,881 53,092 36,045 119,480 2,436 151,903 29,425 54,199 36,470 122,943 2,490 156,796 32,072 55,328 36,870 125,032 2,522 32,883 16,752 33,631 17,074 10,667 13,384 13,068 248 515 456,060 456,060 10,987 14,842 13,642 255 541 474,999 474,999 (228,693) (8,856) (237,548) (241,223) (9,099) (250,323) 195,310 197,045 205,737 21,626 (5,534) (78,079) (61,988) 133,323 $ 23,240 25,355 26,399 26,439 26,475 26,508 26,728 (6,264) (7,445) (7,593) (6,693) (5,741) (4,737) (3,869) (83,449) (94,396) (93,651) (95,112) (98,954) (108,397) (112,376) (66,472) (76,486) (74,845) (75,366) (78,221) (86,627) (89,518) 130,572 $ 129,251 $ 137,562 $ 140,871 $ 138,773 $ 150,385 $ 147,467 GASB = Governmental Accounting Standards Board PFC = Passenger Facility Charge 161,849 35,412 56,482 37,293 167,535 37,624 57,811 37,810 34,349 17,615 133,738 2,742 35,238 17,418 136,353 2,770 36,419 16,623 11,316 16,322 14,244 263 568 490,847 490,847 11,656 17,138 14,875 271 596 505,121 505,121 17,668 30,284 15,537 279 626 544,565 544,565 18,028 31,543 16,232 287 657 559,691 559,691 (253,242) (9,351) (262,592) (265,001) (9,609) (274,610) (278,251) (9,876) (288,127) (297,403) (10,150) (307,554) (312,274) (10,433) (322,707) 212,407 216,237 216,994 237,011 236,985 TMA = Transportation Management Association 82 10-Year Forecast Landing Fee, FIS Fee, Apron Fee and Terminal Rate Landing Fee FIS Fee Apron Fee Terminal Rate $ $ $ $ Budget 2027 5.83 18.74 0.97 186.56 Forecast 2028 $ 6.34 $ 17.73 $ 1.16 $ 207.63 FIS = Federal Inspection Services (US Customs) $ $ $ $ Forecast 2029 6.72 19.82 1.37 231.26 Forecast 2030 $ 7.29 $ 20.79 $ 1.58 $ 240.21 Forecast 2031 $ 7.56 $ 22.35 $ 1.64 $ 265.86 Forecast 2032 $ 7.82 $ 23.56 $ 1.66 $ 287.19 Forecast 2033 $ 7.91 $ 24.70 $ 1.71 $ 312.07 Forecast 2034 $ 8.06 $ 25.98 $ 1.72 $ 338.53 Forecast 2035 $ 8.31 $ 30.60 $ 1.74 $ 351.69 Forecast 2036 $ 8.32 $ 28.95 $ 1.74 $ 378.78 83 10-Year PFC Forecast Budget 2027 Available PFCs to Spend Forecast 2028 Forecast 2029 Forecast 2030 Forecast 2031 Forecast 2032 Forecast 2033 Forecast 2034 Forecast 2035 Forecast 2036 Beginning Balance $ 49,772,718 $ 53,942,103 $ 53,746,544 $ 54,337,533 $ 22,824,898 $ 13,355,217 $ 13,371,943 $ 18,610,589 $ 15,001,637 $ 14,707,271 Collections Interest income PFC Revenues $ $ $ 108,788,737 1,392,642 110,181,378 $ $ 107,925,334 1,423,529 109,348,863 $ $ 107,068,784 1,354,958 108,423,742 $ $ 106,219,031 1,345,210 107,564,242 $ $ 105,376,023 1,442,260 106,818,284 $ $ 104,643,518 1,788,537 106,432,055 $ $ 103,813,014 1,772,545 105,585,559 $ $ 102,989,102 1,765,476 104,754,578 $ $ 101,521,731 2,647,653 104,169,384 $ 109,659,046 1,399,121 111,058,168 Available PFC Revenues $ 153,942,102 $ 158,696,681 $ 159,332,103 $ 160,769,588 $ 129,643,182 $ 120,919,458 $ 121,795,685 $ 127,959,452 $ 125,183,016 $ 125,765,439 Interest income rate 3.50% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% $ 30,500,059 $ 5,208,447 31,977,965 26,294,824 3,491,627 1,547,011 980,067 - 31,025,321 $ 5,196,651 37,950,162 24,797,458 3,440,544 1,550,000 990,000 - 31,023,868 $ 5,179,368 38,194,412 24,654,412 3,402,510 1,550,000 990,000 - 40,137,624 $ 4,254,360 37,956,642 24,653,844 3,402,221 1,550,000 990,000 25,000,000 28,470,703 $ 4,254,283 37,961,323 24,658,420 3,403,235 1,550,000 990,000 15,000,000 9,737,067 $ 4,254,328 37,960,215 24,653,561 3,402,345 1,550,000 990,000 25,000,000 9,738,607 $ 37,962,065 24,565,849 3,378,575 1,550,000 990,000 25,000,000 510,705 $ 37,963,648 24,565,241 3,378,220 1,550,000 990,000 44,000,000 $ 26,494,067 24,563,620 3,378,057 1,550,000 990,000 53,500,000 36,652,401 24,563,084 3,378,216 1,550,000 990,000 40,000,000 $ 100,000,000 104,950,136 104,994,570 137,944,690 116,287,965 107,547,515 103,185,096 112,957,815 110,475,744 107,133,701 PFC - USAGE Revenue Bond DS Offset: Third Runway Baggage - Existing STS/STEP IAF NSAT - Building NSAT - Apron NSAT - PLB NSAT - GUTL Future Project Total (B) $ $ $ $ $ $ $ $ $ Pay-Go PFC spending: Total Pay-Go PFC spending (C ) $ Total PFC Usage (A+B+C) $ 100,000,000 $ 104,950,136 $ 104,994,570 $ 137,944,690 $ 116,287,965 $ 107,547,515 $ 103,185,096 $ 112,957,815 $ 110,475,744 $ 107,133,701 Ending Balance $ 53,942,103 $ 53,746,544 $ 54,337,533 $ 22,824,898 $ 13,355,217 $ 13,371,943 $ 18,610,589 $ 15,001,637 $ 14,707,271 $ 18,631,737 Target (10% of collection) $ 10,152,173 $ 10,298,910 $ 10,381,301 $ 10,464,352 $ 10,537,602 $ 10,621,903 $ 10,706,878 $ 10,792,533 $ 10,878,874 $ 10,965,905 IAF = International Arrivals Facility NSAT = North Satellite - $ - $ - $ - PFC = Passenger Facility Charge PLB = Passenger Loading Bridge $ - $ - $ - $ - $ - $ - 84 Summary of 2026 Mid-Year Projects ($ in 000's) Category Renewal Replacement Renewal Replacement Business Needs Renewal Replacement Renewal Replacement Renewal Replacement Business Needs Renewal Replacement Renewal Replacement Renewal Replacement Business Needs Renewal Replacement • CIP C802148 C802152 C802153 C802154 C802155 C802156 C802171 C802172 C802170 C802181 C802182 C802183 Cost Estimate Description PD Emergency Roof Replacement 642 FIDS System Replacement 1,200 Meter Data Management System (MDMS) 4,000 OpsLan Network Refresh 7,000 Vertical Transportation Monitoring System 485 Airline Activity Management (AAM) 500 PC Air Trolleys 2,000 PC Air endofline Bypass Install 808 Conference Center AV 1,200 Central Mechanical Plant Boiler 650 Rubber Removal Truck 2026 1,200 Baggage Claim 8 Replacement 5,000 Subtotal - 2026 Mid year projects Additions 24,685 2026 642 25 5 50 1,000 808 200 325 1,200 4,255 2027 1,175 1,000 4,000 485 500 1,000 1,000 325 250 9,735 2028 1,500 1,500 750 3,750 2029 1,495 1,450 2,500 5,445 2030 1,250 1,250 Total 2027-2036 Total Cashflows 2031 642 1,175 1,200 3,995 4,000 6,950 7,000 485 485 500 500 1,000 2,000 808 1,000 1,200 325 650 1,200 250 5,000 5,000 250 20,430 24,685 12 new projects added mid-year in 2026 totaling ~$20M over the next ten years. FIDS = Flight Information Display System PC = Pre-Conditioned 85 2026 Mid-Year Project Descriptions • PD Emergency Roof Replacement: This project will address the recurring roof leaks that are continuing to worsen on the 3rd floor of the Police Department. • FIDS System Replacement: Project modernizes FIDS software with new Digital Signage Content Management System. • Meter Data Management System (MDMS): Procure and implement a centralized Meter Data Management System to automate collection, validation, and management of data for 2,000+ smart electrical meters supporting Aviation electrical metering operations. • OpsLan Network Refresh: Upgrade and modernize end-of-life Core, Distribution, and Access network infrastructure to strengthen operational resilience and cybersecurity. • Vertical Transportation Monitoring System: Replace the end-of-life LiftNet system with Knaq's OEM-agnostic conveyance monitoring platform to restore full elevator, escalator, and walkway coverage and provide real-time reporting for asset management and capital planning. • Rubber Removal Truck Purchase: Purchase one rubber removal truck to remove rubber that accumulates on runways from landing aircraft. Rubber removal helps with operations as it reduces friction of the runways. FIDS = Flight Information Display System MDMS = Meter Data Management System 86 2026 Mid-Year Project Descriptions (cont'd) • Airline Activity Management (AAM): Deliver a modern, secure, fully integrated replacement for the AAM system to improve automation, data integrity, and efficiency in airline activity reporting, billing, and public airport statistics. • PC Air Trolleys: Purchase 55 PC Air hose trolleys to reduce hose kinks, improve airflow delivery to aircraft, and eliminate the need to drag heavy hoses across the ground at gate positions. • PC Air End-of-Line Bypass Install: Install end-of-line bypass valves at 14 gates and integrate Siemens controls to provide more consistent chilled water for aircraft cooling, reduce APU fuel use, and enhance passenger comfort. • Conference Center AV: Replace and upgrade all audio/visual systems in the AOB mezzanine Conference Center to improve functionality and reliability for meetings and events. • Baggage Claim 8 Replacement: This project will replace the entire Baggage Claim 8 system, including the claim device and inbound conveyor line, and install new controls to integrate with the existing platform and reporting. • Central Mechanical Plant Boiler: This project will replace the replace refractory system and four water tubes in Boiler #4 at the Central Mechanical Plant. AAM = Airline Activity Management AOB = Airport Office Building PC = Pre-Conditioned 87 Summary of 2027 Proposed New Projects ($ in 000's) Category Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Business Needs Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement Renewal Replacement • CIP C802174 N1C802175 N2C802175 N3C802175 N4C802175 RC802175 N1C802176 N2C802176 N3C802176 RC802176 N1C802177 N2C802177 N4C802177 N5C802177 RC802177 N1C802178 N2C802178 N3C802178 N4C802178 RC802178 C802179 C802180 Cost Estimate Description Fuel Farm Resilliency 28,000 Parking Garage Elevators Modernization Phase 2 12,000 Vertical Circulation Urgent R/R (Ph1A) 10,000 MT-1 Controls & Fixtures 2,000 MT-3F Full Replacement 4,000 Vertical Circulation R/R Reserve 3,000 Air Cargo Road Phase 2 40,000 Parking Garage Rehabilitation + Security 65,000 Distribution Warehouse Structural Retrofit 10,000 Landside Improvements Reserve 5,000 SD 6/7 Pipe Repair 1,000 Central Terminal Heat Exchange R/R 8,000 HVAC Burst Heating Coil R/R 6,000 STOC Boiler R/R 2,000 Mechanical R/R Reserve 2,000 CT Infrastructure 40,000 Flight Information Displays Replacement 10,000 Signage and Wayfinding R/R (Ph1) 35,000 SEA WiFi Refresh 5,000 Terminal Improvements Reserve 10,000 Fleet Purchase Program 6,000 RCF EV Buses 46,000 Subtotal - 2027 Proposed Additions 350,000 2027 280 120 100 100 200 100 130 25 100 800 300 100 200 50 175 250 900 3,930 2028 1,400 1,200 1,500 200 400 1,000 650 300 555 1,600 900 1,000 1,000 500 875 2,500 1,200 16,780 2029 4,200 1,800 2,000 1,000 2,000 750 2,000 6,500 3,500 300 4,000 3,000 900 500 6,000 3,000 5,250 2,250 2,100 11,500 62,550 2030 9,800 4,800 4,000 400 800 750 14,000 13,000 5,000 1,250 45 1,600 1,500 500 12,000 3,000 10,500 2,500 1,800 34,500 121,745 2031 9,800 2,400 1,000 300 600 750 14,900 16,250 1,175 1,250 300 500 14,800 3,450 12,950 2,500 82,925 2032 2,520 1,680 1,400 750 8,000 16,250 1,250 500 6,000 5,250 2,500 46,100 2033 8,775 1,250 2,500 12,525 Total 2027-2036 Total Cashflows 2034 28,000 28,000 12,000 12,000 10,000 10,000 2,000 2,000 4,000 4,000 3,000 3,000 40,000 40,000 3,445 65,000 65,000 10,000 10,000 5,000 5,000 1,000 1,000 8,000 8,000 6,000 6,000 2,000 2,000 2,000 2,000 40,000 40,000 10,000 10,000 35,000 35,000 5,000 5,000 10,000 10,000 6,000 6,000 46,000 46,000 3,445 350,000 350,000 22 new projects proposed to be added in 2027 totaling $350M over the next ten years. CT = Computed Tomography EV = Electric Vehicle RCF = Rental Car Facility SEA = Seattle-Tacoma International Airport STOC = SeaTac Office Center 88 2027 Proposed New Project Descriptions • B-4 Reconfiguration: This project is up-gauging Gate B4 to accommodate Group III Aircraft. • Fuel Farm Resiliency: This project provides much needed slope stabilization in certain sloped areas and constructs a three-truck defueling system at the Fuel Farm. • Airside Improvements Reserve: Provides reserve funding for future airside improvement needs to support safe and efficient airfield operations. • Parking Garage Elevators Modernization Phase 2: Modernizes aging parking garage elevators to ensure reliability, code compliance, and improved passenger movement. • Vertical Circulation Urgent R&R (Ph1A): Replaces critical elevator and escalator components that are past life expectancy and pose reliability risks. • MT-1 Controls & Fixtures: Updates MT-1 elevator controls and fixtures that are obsolete, enabling continued safe and reliable operation. R&R = Repair & Replace 89 2027 Proposed New Project Descriptions (cont'd) • MT-3F Full Replacement: Fully replaces the MT-3F traction elevator due to obsolete parts and ongoing reliability issues. • Vertical Circulation R&R Reserve: Provides reserve funding for future elevator and escalator renewal and replacement across the terminal. • Air Cargo Road Phase 2: Reconstructs deteriorated pavement and adds pedestrian/ADA facilities and lighting to bring Air Cargo Road up to safety standards. • Parking Garage Rehabilitation + Security: Repairs structural defects and enhances security controls in the aging parking garage to extend asset life and reduce safety risks. • Distribution Warehouse Structural Retrofit: Implements seismic upgrades to achieve collapse-prevention performance and improve life-safety during an earthquake. • Landside Improvements Reserve: Provides reserve funding to support future landside improvement needs across airport facilities. ADA = Americans with Disabilities Act R&R = Repair & Replace 90 2027 Proposed New Project Descriptions (cont'd) • SD 6/7 Pipe Repair: Repairs a severely damaged storm drain segment to prevent failure, flooding, and major liability risks. • Central Terminal Heat Exchange R&R: Replaces failing domestic hot water systems serving tenants and restrooms to prevent outages that disrupt operations. • HVAC Burst Heating Coil R&R: Replaces burst heating coils in key HVAC units to restore reliable heating and cooling in airport facilities. • STOC Boiler R&R: Replaces aging boilers in STOC's North and South towers to maintain reliable heating and avoid costly emergency failures. • Mechanical R&R Reserve: Provides reserve funding for urgent repair and replacement of mechanical infrastructure across the airport. • Computed Tomography Machines Infrastructure: Provides funding to upgrade and maintain core Central Terminal infrastructure systems. CT = Computed Tomography R&R = Repair & Replace SD = Storm Drain STOC = SeaTac Office Center 91 2027 Proposed New Project Descriptions (cont'd) • Flight Information Display Systems (FIDS) Replacement: Replaces aging FIDS screens and casework to ensure clear, reliable passenger flight information displays. • Signage and Wayfinding R&R (Ph1): Replaces outdated signage with modern, consistent wayfinding solutions across key public areas of SEA. • SEA Wi-Fi Refresh: Refreshes end-of-life Wi-Fi hardware and software to deliver reliable, secure, highperformance connectivity for passengers and staff. • Terminal Improvements Reserve: Provides reserve funding for future terminal renovation and modernization needs. • Fleet Purchase Program: Replaces aging fleet vehicles to support daily operational needs and transition to more efficient, lower-emission equipment. • RCF EV Buses: Purchases 29 electric buses to replace aging CNG buses and meet SEA's emission-reduction goals. CNG = Compressed Natural Gas EV = Electric Vehicle FIDS = Flight Information Display System R&R = Repair & Replace RCF = Rental Car Facility STOC = SeaTac Office Center 92 SEA = Seattle-Tacoma International Airport OTHER SUPPORTING INFORMATION 93 FTE Count by Org: 2026 vs. 2027 Budget Total Aviation Division FTE 105.0 Aeronautical Operations 101.0 179.5 Landside Operations 1,387.37 176.5 43.2 Customer Service 2026 Budget 41.2 1,342.05 2027 Budget 49.3 Commercial Management 47.0 Change: (45.32) FTE / (3.3%) 6.0 Utilities 6.0 177.0 Aviation Services 171.0 184.4 Airport Security 183.4 71.0 Facilities & Capital Programs 62.0 481.0 AV Maintenance 477.0 90.9 Aviation Project Mgmt Grp 76.9 0 100 200 2026 Budget FTE = Full-Time Equivalent 300 2027 Budget 400 500 600 ORG Organization O3700 Aeronautical Operations O3400 Landside Operations O4200 Customer Service O3500 Commercial Management O3905 Utilities O4000 Aviation Services O4800 Airport Security O4500 Facilities & Capital Programs O4590 AV Maintenance O4550 Aviation Project Management Grp O4600 Capital Development Program merged into O4550 Aviation Project Mgmt Group including 4630 Program Mgmt Office 94 Charges from Other Divisions, 2024-2027 expense summary (subclass view) · figures in 000s Corporate 2024 → 2027 −8,365 (−6.7%) 124,058 Maritime / Economic Development / Other Police 2024 → 2027 +2,740 (+6.9%) 116,220 115,693 39,709 2026 Revised 2027 Proposed 2024 Actual 42,925 39,200 2024 → 2027 +1,427 (+19.7%) 42,449 93,940 2024 Actual 2025 Actual 2025 Actual 2026 Revised 2027 Proposed 7,232 7,493 2024 Actual 2025 Actual 8,033 2026 Revised 8,659 2027 Proposed Charges from Other Divisions 2024 Actual 2025 Actual 2026 Forecast 2026 Budget 2026 Revised 2027 Proposed Chg 26R → 27 Corporate 124,058 93,940 118,661 114,558 116,220 115,693 (528) Police 39,709 42,925 39,248 39,200 39,200 42,449 3,249 Maritime/Economic Development/Other 7,232 7,493 7,714 8,033 8,033 8,659 626 95 Charges from Other Divisions (by Dept.), 2026-2027 Net Change Increases 2026 2027 2026 2027 4300-Police Department 39,199,668 42,448,902 3,249,234 1700-Port Construction Services 7,682,314 6,352,889 (1,329,425) 1980-Information Security 3,481,564 4,240,447 1910-ICT Technology Delivery 9,040,387 9,702,135 758,883 1970-ICT Entrprs Infrastructure Svc 12,550,783 11,830,894 (719,889) 661,748 1605-Engineering General Services 2,425,682 1,729,325 (696,357) 849,081 1,069,011 219,930 1630-Construction Services 4,790,703 4,124,961 (665,742) 2290-AFR Capital Services 1,421,031 1,563,796 142,765 1610-Design Services 2,440,512 2,117,768 (322,744) 1360-Health & Safety 1,638,545 1,771,088 132,543 1660-Construction Safety 2280-Internal Audit 1,880,358 1,996,488 116,130 9205-Central Procurement Office 2260-AFR General Accounting 2,436,998 2,546,945 109,947 1680-CPO Construction 1853-Talent Management 3,053,585 3,140,743 87,158 2270-AFR Business Technology 1,145,375 1,227,218 1855-Organizational Effectiveness 2,563,999 1850-Human Resources 2,301,657 2410-Office of Strategic Initiatives 1311-Records Change Net change Decreases Change Net change 630,240 311,360 (318,880) 6,645,906 6,341,739 (304,167) 857,809 560,489 (297,320) 2710-Envr & Sustainability Admin 1,919,077 1,633,399 (285,678) 81,843 1335-Insurance 4,836,101 4,557,110 (278,991) 2,644,377 80,378 1650-Engineering Administration 491,703 248,357 (243,346) 2,380,929 79,272 2220-AFR Revenue Services 2,237,869 2,090,710 (147,159) 1,298,590 1,374,787 76,197 1810-Labor Relations 1,626,411 1,505,079 (121,332) 1640-Survey and Mapping Services 1,139,336 1,211,646 72,310 1100-Executive 2,407,009 2,304,291 (102,718) 1852-EEO and Professional Standards 1,254,334 1,324,887 70,553 1200-Commission Office 4,382,989 4,286,317 (96,672) 1330-Risk Management 1,106,456 1,160,624 54,168 1510-Business Intelligence 2,229,223 2,162,161 (67,062) 1854-Total Rewards 2,696,317 2,736,414 40,097 1420-External Relations 6,716,710 6,671,095 (45,615) 1856-College/Graduate Intern 1,534,587 1,574,465 39,878 2210-AFR Core Services 737,781 705,886 (31,895) 1936-ICT Product Engineering 6,055,011 6,070,461 15,450 2100-Finance & Budget 2,909,568 2,877,727 (31,841) 1310-Attorney Services 4,783,435 4,796,105 12,670 1460-Equity, Diversity and Inclusion 1,700,668 1,670,319 (30,349) 2240-AFR Disbursements 1,883,654 1,886,469 2,815 2910-Commission Contingency 83,229 82,750 (479) Departments with little or no net change have been removed from this year over year comparison. 96 Planning Studies Detail On-Call Planning Amount Description Electricity Demand/ Supply Study $300,000 Development of Future Requirements and Implementation Plan which will confirm existing conditions and capacity, evaluate future needs based on critical electrification projects, and deliver a dynamic prediction tool SEA can use into the future for internal planning and communication/ coordination with utility providers. The current estimate for this work is $600k. $300k is requested for 2027 with an anticipated $300k request for 2028 to complete the study. Airfield Study $200,000 Continuation of work completed in 2026 to complete study evaluating alternatives to comply with 500 ft separation requirement. Includes gate allocation modeling, airfield simulation and cost estimation to conduct cost benefit analysis of potential compliance scenarios. PM Support and Small Planning Tasks $700,000 Provides funds to conduct work outside of individual Service Directives, including conducting overall contract program management; responding to emerging issues and requests for planning assistance from other departments; and providing technical support as needed to Port Planning staff. Work also includes concept development and evaluation of operational and facilities improvements to optimize efficiency and increase capacity in all functional areas of the airport system. Anticipated work includes, but is not limited to, annual Airport Capacity Analysis and terminal and landside modeling. TOTAL $1,200,000 97 Pre-Conditioned Air Projects Past Current Project Year PCAP Chiller Ops Adjustment 2026 TAD to Flex Transition (Phase 1) 2026 VFD Faults (Phase 1) 2026 Flex Hoses (Phase 1) Replacement AHUs (13 Gates) 2026 2026 PCAHUs = Pre-Conditioned Air Handling Units PCAP = Pre-Conditioned Air Project Future Year Project Year End of Line Bypasses 2027 PCAHU Renewal and Replacement (82 Gates) 2027-2030 TAD to Flex Transition (Phase 2) 2026-2027 VFD Faults (Phase 2) 2027 Flex Hoses (Phase 2) 2027 Trolleys and Power Hose Reels Installation 2027 Project Telescoping Air Duct Leak Fixes 2026-2027 TAD = Telescoping Air Duct VFD = Variable Frequency Drive 98 Environmental Remediation Liability (ERL) Expense Environmental Remediation Liability (ERL) Expense Org Basis (in 000's) Asbestos & PCB Baggage Optimization Phase 3 Deaerator and Condensate S Concourse Evolution (Phase 1) Main Terminal (MT) Low Voltage System Upgrade NMT Redevelopment, Alaska SEA Gateway Airline Realignment Garage Elevator Modernization Checkpoint 1 ERL CUSS Renewal/Replacement Noise Program Apartments Subtotal Soils Airfield Pavement (2021-2025) Airfield Pavement (2026-2030) C Concourse ERL Subtotal Groundwater SEA Airport PFAS Subtotal Total ERL Expense CUSS = Common Use Self Service ERL = Environmental Remediation Liability Forecast Change 2027 B v 2026 F 2025 2026 2026 2027 Actuals Budget Forecast Budget $ % 836 498 6 200 1,540 400 210 607 1,217 203 423 7 56 5 500 1,192 400 210 330 940 0% 0% 330 (607) (100%) (277) (23%) 481 481 450 450 20 50 186 236 60 60 (390) (390) (87%) (87%) 672 672 2,693 600 600 2,267 850 850 2,279 4,000 4,000 5,000 3,400 3,400 2,733 567% 567% 121% NMT = North Main Terminal SEA = Seattle-Tacoma International Airport PFAS = Perfluoroalkyl and Polyfluoroalkyl Substances 99 Acronyms: A-J Alaska Air Group AAG Airline Activity Management AAM ACDBE Airport Concession Disadvantaged Business Enterprise Americans with Disabilities Act ADA Aviation Development Fund ADF Airport Dining & Retail ADR Aqueous Film Forming Foam AFFF Airport Improvement Program AIP Airport Office Building AOB Airport Service Quality ASQ AVBP Aviation Business & Properties (Port Dept) AVPMG Aviation Project Management Group (Port Dept) Business & Occupation Tax B&O Building Information Modeling BIM BRITE LED in-pavement runway guard lights Century Agenda CA US Customs & Border Protection CBP Customer Facility Charge CFC Capital Improvement Program CIP Central Mechanical Plant CMP Compressed Natural Gas CNG Center of Expertise COE COLA Cost of Living Adjustment Commercial Paper CP Cost Per Enplanement CPE CPI CT CUSE CUSS DMCBP DRS EDD EDI EDP EIS ELT ERL EV FAA FIFA FIDS FIS FOD Forecast FTE GASB GHG GSE IAF IWTP Consumer Price Index Computed Tomography Common Use Systems Equipment Common Use Self Service Des Moines Creek Business Park Department of Retirement Systems Economic Development Division (Port Division) Equity, Diversity, & Inclusion Executive Director Priorities Environmental Impact Statement Executive Leadership Team Environmental Remediation Liability Electric Vehicle Federal Aviation Administration Fédération Internationale de Football Association Flight Information Display System Federal Inspection Services (US Customs) Foreign Object Damage/Debris Snapshot in Time Full-Time Equivalent (employee) Governmental Accounting Standards Board Green House Gas Ground Service Equipment International Arrivals Facility Industrial Wastewater Treatment Plant 100 Acronyms: K-Z Minimum Connect Time MCT MDMS Meter Data Management System North Employee Parking Lot NEPL North Main Terminal NMT Net Operating Income NOI NPDES National Pollutant Discharge Elimination System NSAT North Satellite Near-Term Projects or Notice to Proceed NTP Origin & Destination O&D Operating & Maintenance O&M ORAT Operational Readiness, Activation & Transition (Port Dept) PCAP Pre-Conditioned Air Project PCAHU Pre-Conditioned Air Handling Unit Perfluoroalkyl and Polyfluoroalkyl Substances PFAS Passenger Facility Charge PFC Perimeter Intrusion Detection System PIDS Passenger Loading Bridge PLB Plan of Finance POF Peer-to-Peer P2P Quick Turn Around QTA Rental Car Facility RCF Request for Proposal RFP Regulated Materials Management RMM Repair & Replace R&R SAMP SBITA SCE SD SEA SEPA SLOA SMS STAC STOC STS SWOT TAD TASCR TMA TNC TSA VFD ZBB Sustainable Airport Master Plan Subscription Based Information Technology Arrangement South Concourse Evolution Storm Drain Seattle-Tacoma International Airport State Environmental Policy Act Signatory Lease & Operating Agreement Surface Management System Sea-Tac Airline Consortium SeaTac Office Center Satellite Transit System Strengths, Weaknesses, Opportunities, and Threats Telescoping Air Duct Tenant ADR Shell & Core Renovations Transportation Management Association Transportation Network Companies (e.g., Lyft, Uber) Transportation Security Administration Variable Frequency Drive Zero-Based Budgeting 101