Denver International Airport lost $12 million in the first six months of the year, despite rising revenue. The airport reported a $9.2 million profit for the same period in 2007.
Operating costs rose $28.6 million for the first half of 2008, up 22% from 2007’s first half. With aviation fuel tax collections rising, operating revenue increased $9.4 million to $264 million.
The city and county of Denver has been seeking since July to convert $208 million of auction-rate securities for the airport into variable-rate debt but has been stymied by market turmoil. The city is hoping conditions might permit a refinancing this month
DIA’s largest carrier, United Airlines, is struggling with record fuel prices as it continues to recover from its 2002 bankruptcy while seeking a merger partner. The homegrown discount carrier Frontier Airlines, DIA’s second-largest carrier, is currently in bankruptcy and competing with the newly arrived Southwest Airlines, the nation’s most profitable carrier.
The airport, in the midst of a major capital program, served a record 25 million enplaned passengers in 2007, with first-half 2008 results up 4.4% over the previous year.
