SFO concession revenues allocated to The City, estimated at $37 million for the current fiscal year, are expected to increase to $40 million in three years, airport director John Martin said in a Wednesday briefing before the Board of Supervisors Budget and Finance Committee. Under the airport budget, The City receives 15 percent of concession revenues.
“We’ve had very strong growth in the last four years, 5 percent annual growth,” Martin said. “We do expect some slowdown in the growth as Oakland and San Jose pick up a larger share of the air traffic activity.”
Structural growth is expected at 1.9 percent, which includes the addition of new international airlines China Eastern, SAS and Aer Lingus
The SFO budget is proposed to be $937.1 million next fiscal year. The airport also has a $2.5 billion, five-year capital budget that covers terminal expansions. One project, a new 225-foot-high air traffic tower, is currently under construction and expected to open in 2016.
In addition to the budget briefing, Martin noted that the airport must close down two of its four runways May 17 for Federal Aviation Administration-required safety work to be completed by September. Departure delays are expected to last between 12 and 23 minutes on average during the closure.