SFO
ANNUAL
REPORT 2017
FISCAL YEAR 2016-2017
1
San Francisco Mayor Edwin M. Lee (1952 - 2017) dedicated much of his life
serving the people of the San Francisco Bay Area, including nearly 30 years of public
service. Starting with his first job as an attorney advocating for aordable housing
and immigrants, rights, he was always working on behalf of others, particularly
those who did not have a voice of their own or means to advocate for their needs.
Mayor Lee was a man of great courage, always pushing for momentous change
and encouraging boldness and innovation. He took on challenges with great
commitment and passion especially those issues close to his heart such as
homelessness, the environment, and the safety and security of our City. His
enthusiasm, dedication and commitment to improving the lives of all San
Franciscans was an inspiration. He truly loved our City, and wanted all residents to
take pride in its wonder and beauty, and share in its success.
Mayor Lee was proud of our Airport. He liked to tell people that coming to SFO
was like coming to a 5-star luxury hotel. He viewed SFO as the global gateway
to our entire region, one which should reflect all the values that make us great:
equality, diversity, inclusion and innovation. We will honor his legacy by continuing
to champion those ideals.
TRIBUTE TO SAN FRANCISCO
MAYOR EDWIN M. LEE
Larry Mazzola President, Airport Commission
Linda S. Crayton Vice President, Airport Commission
Richard Guggenhime Member, Airport Commission
Eleanor Johns Member, Airport Commission
Peter Stern Member, Airport Commission
Ivar C. Satero Airport Director
1994.09.02 poster: United Air Lines, San Francisco 1951 Collection of SFO Museum
On the 90th anniversary of SFO, we took time to celebrate our past, but we also
took important steps to ensure the future of our airport. SFO’s iconic landmark, the
new air trac control tower, became operational and we began construction of the
new Terminal 1 facility and an on-airport hotel. These projects are at the forefront
of our $6.2 billion Capital Plan, which reflects my commitment to revolutionize the
passenger experience at SFO.
As we build for our future, we also reinforce our status as an industry leader in
environmental sustainability. We established aggressive goals to achieve carbon
neutrality, zero waste in landfill, zero net energy, and helped Airport tenants to
achieve their Green Business Certification from the State of California. This history
of climate action and sustainability reporting was recognized in March 2017, when
Acterra announced the selection of SFO for their top honor, the 2017 Business
Environmental Award. SFO continued to break new ground during this
period, partnering with Singapore Airlines to launch the longest flight in the world
using sustainable biofuel.
We remain firmly committed to be an Airport in service to our communities. We
hosted another “Ready Set Fly” event to provide a real-world experience of air
travel to individuals and families with autism and developmental disabilities.
We celebrated 20 years of airport internship programs with the largest level of
participation ever, oering opportunities to more than 150 individuals ranging
from high school to post-graduate levels. We partnered with the FAA and two
airlines to demonstrate a new GPS landing technology which oers potential to
reduce aircraft noise over communities around SFO.
As they were 90 years ago, safety and security remain our highest priorities,
and we continue to be innovators in these pursuits. We achieved perfect scores
in our annual FAA inspection, and launched a new ID badge program to allow
vendors and visitors occasional access at the airport while tightening security.
The Quality Standards Program (QSP), our industry-leading wage and benefit
policy, continues to reduce turnover and increase workforce stability among service
providers whose employees perform services impacting safety and security at SFO.
I appreciate the guidance of the Airport Commission and the support of former San
Francisco Mayor Edwin M. Lee. I am also grateful to my sta for their hard work and
dedication. The same hard work and perseverance which created our Airport 90
years ago is today focused on building a vital future.
LETTER FROM THE
AIRPORT DIRECTOR
Ivar C. Satero
Airport Director
3
1994.09.01 TWA (Trans World Airlines), Los Angeles c. 1955 Collection of SFO Museum
5
Larry Mazzola
President
Airport Commission
I am pleased to report that SFO set a new all-time record for trac with nearly
54 million passengers served. SFO continues to be one of the fastest-growing
airports in North America for international trac, with double-digit growth for
three straight years. What began nine decades ago as a muddy field constructed
to transport air mail has since evolved into a global gateway to the world’s foremost
center of technology, innovation, culture and tourism.
Growth at SFO has benefited more than the travelers who use our Airport. This
growth powers local economies, driving job creation and business revenue. During
this period, SFO directly accounted for more than 42,800 jobs at the Airport,
and more than $8.4 billion in business activity. O-site business activities that
depend directly on local air service for sta movements, cargo deliveries, or visitor
spending collectively raised the direct airport economic contribution to the Bay
Area to $35.7 billion in business sales with approximately 165,000 jobs. The
indirect and direct spin-o activities associated with suppliers of goods and
services to directly aected businesses, and the re-spending of additional worker
income on consumer goods and services, raises the total regional economic impact
to more than $62.5 billion in business sales, including $20.9 billion in total payroll
and more than 300,300 jobs.
These contributions all reflect increases over previous figures, thanks to the
addition of new airlines and new routes, both in the U.S. and around the world.
New airlines included Finnair, with nonstop service to Helsinki, and Thomas Cook
Airlines, along with incumbent airline Virgin Atlantic, launched new nonstop
service to Manchester, England. This period also witnessed the acquisition of Virgin
America by Alaska Airlines, and the newly-combined company has
demonstrated its commitment to SFO with the largest announcement of new
markets in its history; 10 new routes from SFO, including service to Mexico City. This
eort has promoted a healthy competitive environment with United, the largest
airline at SFO, as it continued to invest in the Airport by introducing new routes and
expanding frequency.
On behalf of the Airport Commission, I congratulate SFO on the achievements
and awards they have garnered over the past year. These accolades are further
evidence of the exceptional leadership provided by Airport Director Ivar C. Satero,
and the dedication of the employees at SFO.
LETTER FROM THE
COMMISSION PRESIDENT
1994.09.03 poster: Pan American World Airways, Mexico 1950s Collection of SFO Museum
7
ABQ Albuquerque, NM
ACV Eureka, CA
ANC Anchorage, AK
ASE Aspen, CO
ATL Atlanta, GA
AUS Austin, TX
BDL Hartford, CT
BFL Bakersfield, CA
BNA Nashville, TN
BOI Boise, ID
BOS Boston, MA
BUR Burbank, CA
BWI Baltimore, MD
BZN Bozeman, MT
CLE Cleveland, OH
CLT Charlotte, NC
COS Colorado Springs, CO
CVG Cincinnati, OH
DAL Dallas Love Field, TX
DCA Washington-Reagan, VA
DEN Denver, CO
DFW Dallas/Fort Worth, TX
DTW Detroit, MI
EUG Eugene, OR
EWR Newark, NJ
FAT Fresno, CA
FCA Kalispell, MT
FLL Fort Lauderdale, FL
GEG Spokane, WA
HDN Hayden, CO
HNL Honolulu/Oahu, HI
IAD Washington-Dulles, VA
IAH Houston, TX
IND Indianapolis, IN
JAC Jackson Hole, WY
JFK New York, NY
KOA Kona/Hawaii, HI
LAS Las Vegas, NV
LAX Los Angeles, CA
LGB Long Beach, CA
LIH Lihue/Kauai, HI
MCI Kansas City, MO
MCO Orlando, FL
MDW Chicago-Midway, IL
MFR Medford, OR
MIA Miami, FL
MKE Milwaukee, WI
MMH Mammoth, CA
MRY Monterey, CA
MSO Missoula, MT
MSP Minneapolis/St. Paul, MN
MSY New Orleans, LA
MTJ Montrose, CO
OGG Kahului/Maui, HI
OKC Oklahoma City, OK
OMA Omaha, NE
ONT Ontario, CA
ORD Chicago-O’Hare, IL
OTH North Bend, OR
PDX Portland, OR
NON-STOP DOMESTIC
DESTINATIONS
2005.119.006 poster: Air France, Paris 1947 (reproduced 1993) Collection of SFO Museum, gift of Air France
9
PHL Philadelphia, PA
PHX Phoenix, AZ
PIT Pittsburgh, PA
PSC Pasco/Tri-Cities, WA
PSP Palm Springs, CA
RDD Redding, CA
RDM Redmond, OR
RDU Raleigh-Durham, NC
RNO Reno, NV
SAN San Diego, CA
SAT San Antonio, TX
SBA Santa Barbara, CA
SBP San Luis Obispo, CA
SEA Seattle/Tacoma, WA
SLC Salt Lake City, UT
SMF Sacramento, CA
SMX Santa Maria, CA
SNA Orange County, CA
STL St. Louis, MO
STS Sonoma, CA
SUN Sun Valley, ID
TPA Tampa, FL
TUS Tucson, A Z
XNA Arkansas, AR
NON-STOP DOMESTIC
DESTINATIONS CONT.
2014.166.086 poster: Scandinavian Airlines System (SAS), Copenhagen 1960s Collection of SFO Museum, gift of Captain
Jon Simmonds
11
AKL Auckland, NZ
AMS Amsterdam, NL
AUH Abu Dhabi, AE
CAN Guangzhou, CN
CDG Paris-De Gaulle, FR
CPH Copenhagen, DK
CTU Chengdu, CN
CUN Cancun, MX
DEL Delhi, IN
DUB Dublin, IE
DUS Dusseldorf, DE
DXB Dubai, AE
FRA Frankfurt, DE
GDL Guadalajara, MX
HEL Helsinki, FI
HGH Hangzhou, CN
HKG Hong Kong, HK
HND Tokyo-Haneda, JP
ICN Seoul-Incheon, KR
IST Istanbul, TR
KEF Reykjavik, IS
KIX Osaka-Kansai, JP
LHR London-Heathrow, GB
MAN Manchester, GB
MEX Mexico City, MX
MNL Manila, PH
MUC Munich, DE
NAN Nadi, FJ
NRT Tokyo-Narita, JP
PEK Beijing, CN
PTY Panama City, PA
PVG Shanghai, CN
PVR Puerto Vallarta, MX
SAL San Salvador, SV
SIN Singapore, SG
SJD San Jose Cabo, MX
SYD Sydney, AU
TAO Qingdao, CN
TLV Tel Aviv, IL
TPE Taipei, TW
TXL Berlin, DE
WUH Wuhan, CN
XIY Xi’an, CN
YUL Montreal-PET, CA
YVR Vancouver, CA
YYC Calgary, CA
Y YJ Victoria, CA
YYZ Toronto, CA
ZRH Zurich, CH
NON-STOP INTERNATIONAL
DESTINATIONS
2002.073.018 poster: Pan American World Airways, India 1950s Collection of SFO Museum, gift of Constance Ogilvie
13
PASSENGERS
Total Passengers
(7
th
in North America, 23
rd
in the world in 2016
1
)
53,985,826
Total Bay Area Market Share 69%
Domestic Enplaned and
Deplaned Passengers
41,046,640
Domestic Bay Area Market Share 64%
International Enplaned and
Deplaned Passengers
12,922,418
International Bay Area Market Share 91%
Through (In-transit
2
) 16,768
CARGO
Total Cargo
3
(metric tons) 466,921
Domestic 166,445
International 300,476
TOP 5 AIRLINES AT SFO
United Airlines 44%
Alaska Airlines/Virgin America 9%
American Airlines 8%
Delta Air Lines 8%
Southwest Airlines 7%
Fiscal Year July 2016 to June 2017
1
Source: Airports Council International
2
Passengers who fly in and out on the same aircraft
3
Excludes mail
FACTS &
FIGURES
Los Angeles
New York
Chicago
Seattle
Las Vegas
London
Hong Kong
Taipei
Vancouver
Tok yo
TOP 5 DOMESTIC
DESTINATIONS
TOP 5 INTERNATIONAL
DESTINATIONS
1994.09.05 poster: Pan American World Airways, Hong Kong 1960s Collection of SFO Museum
15
Aer Lingus
Aeromexico
airberlin
Air Canada
Air China
Air France
Air India
Air New Zealand
Alaska Airlines
All Nippon Airways (ANA)
American Airlines
Asiana Airlines
Avianca
British Airways
Cathay Pacific Airways
China Airlines
China Eastern Airlines
China Southern Airlines
Copa Airlines
Delta Air Lines
Emirates
Etihad Airways
EVA Air
Fiji Airways
Finnair
Frontier Airlines
Hawaiian Airlines
Japan Airlines
JetBlue Airways
KLM Royal Dutch Airlines
Korean Air Lines
Lufthansa German Airlines
Philippine Airlines
Qantas Airways
Scandinavian Airlines (SAS)
Singapore Airlines
Southwest Airlines
Sun Country Airlines
Swiss International Air Lines
Thomas Cook Airlines
Turkish Airlines
United Airlines
Virgin America
Virgin Atlantic
Volaris
WestJet Airlines
WOW Air
XL Airways France
PASSENGER
Ameriflight
Asiana Airlines
Atlas Air, Inc.
China Airlines
EVA Air
FedEx
Kalitta Air
Korean Air Lines
Nippon Cargo Airlines (NCA)
Redding Aero Enterprises
CARGO
PASSENGER &
CARGO AIRLINES
2015.109.067 poster: Qantas Airways, Australia 1950s Collection of SFO Museum, gift of Thomas G. Dragges
17
PLATINUM AWARDS
PRINT AND SOCIAL MEDIA CAMPAIGNS
Hermes Creative Awards
AWARDS &
RECOGNITION
INFORMATION TECHNOLOGY AND
TELECOMMUNICATIONS (ITT) TEAM
CIO 100
SUSTAINABILITY
Acterra
PRINT COMMUNICATIONS
Airports Council International
MOST INNOVATIVE
INDIVIDUAL IN AIRPORTS
American Association of Airport Executives
GOLD AWARDS
ADVERTISING CAMPAIGNS
Hermes Creative Awards
GOLD AWARDS
DIGITAL MARKETING CAMPAIGNS
Hermes Creative Awards
AIRPORT WITH THE BEST
MANAGEMENT TEAM
Airport Revenue News
2000.102.002 poster: Northwest Orient Airlines, Philippines 1950s Collection of SFO Museum
19
Larry Mazzola, President
Linda S. Crayton, Vice President
Eleanor Johns
Richard J. Guggenhime
Peter A. Stern
AIRPORT COMMISSION
AIRPORT COMMISSION
& MANAGEMENT
Ivar C. Satero, Airport Director
Chris Arrigale, Executive Assistant to the Airport Director
Jon Ballesteros, Chief External Aairs Ocer
John Bergener, Planning & Environmental Director
Sheryl Bregman, Airport General Counsel, Legal
Jean Caramatti, Commission Secretary
Leo Fermin, Chief Business & Finance Ocer
Ian Law, Chief Information Ocer
Je Littlefield, Chief Operating Ocer
Bill Loeer, Acting Director of Facilities
Geo W. Neumayr, Chief Development Ocer
Julian Potter, Chief Administration & Policy Ocer
Blake Summers, Director & Chief Curator, SFO Museum
Linda Yeung, People, Performance & Development Director
AIRPORT MANAGEMENT
1995.55.05 poster: Pan American World Airways, Hawaii 1948 Collection of SFO Museum
21
HIGHLIGHTS OF AIRLINE OPERATIONS AT THE AIRPORT
FINANCIAL
SUMMARY
Fiscal year 2017 passenger trac at SFO concluded with 26.9 million
enplanements, an increase of 4.9% compared to the prior fiscal year, establishing
a new peak for the Airport. Domestic growth was from increased service, mainly by
a combination of Low Cost Carriers (LCCs) and legacy carrier United Airlines (United).
The international sector also experienced service additions. These included new
services commenced by Finnair, Thomas Cook, Virgin Atlantic, Volaris, United and
WOW Air, and aircraft size or frequency increases by Air Canada, airberlin, KLM,
SWISS, Korean Air, and United. Total cargo and U.S. mail tonnage increased by 18.6%
due to increases in both domestic and international shipments.
The 4.9% fiscal year-over-year enplanement increase at SFO compares to increases
of 8.3%
1
at Oakland International Airport and 12.8%
2
at Mineta San Jose International
Airport, resulting in relatively stable Bay Area passenger market share of 69.1% for
SFO, compared to 70.2% in fiscal year 2016.
To view the entire fiscal year 2016-2017 audited financial statements, visit
www.flysfo.com/fy1617.
1
Source: Oakland International Airport Trac Report
2
Source: Mineta San Jose International Airport Trac Report
2012.147.248 poster: Pan American Airways, Golden Gate International Exposition 1937 Collection of SFO Museum, gift of
the Captain John B. Russell Family
22
NET POSITION SUMMARY (IN THOUSANDS)
FINANCIAL
SUMMARY
FY 2017 FY 2016
Percentage
Increase
(Decrease)
FY 2017
Assets:
Unrestricted current assets $ 440,930 $ 467,577 (5.7)%
Restricted current assets 437,934 282,371 55.1
Restricted non-current assets 726,310 640,970 13.3
Capital assets, net 4,282,629 4,045,636 5.9
Total assets 5,887,803 5,436,554 8.3
Deferred outflows of resources:
Unamortized loss on refunding of debt 76,789 68,100 12.8
Deferred outflows on derivative instruments 54,870 83,614 (34.4)
Deferred outflows related to pensions 145,743 43,982 231.4
Total deferred outflows of resources 277,402 195,696 41.8
Liabilities:
Current liabilities 284,221 309,888 (8.3)
Current liabilities payable from restricted assets 356,535 494,128 (27.8)
Noncurrent liabilities 5,033,314 4,372,604 15.1
Net pension liability 359,599 144,271 149.3
Derivative instruments 65,965 96,132 (31.4)
Total liabilities 6,099,634 5,417,023 12.6
Deferred inflows of resources:
Deferred inflows related to pensions 15,402 48,154 (68.0)
Total deferred inflows of resources 15,402 48,154 (68.0)
Net position:
Net investment in capital assets (284,761) (117, 377) 142.6
Restricted for debt service 109,554 35,462 208.9
Restricted for capital projects 296,188 212,931 39.1
Unrestricted (70,812) 36,057 (296.4)
Total net position $ 50,169 $ 167,073 (70.0)%
23
HIGHLIGHTS OF CHANGES IN NET POSITION (IN THOUSANDS)
FINANCIAL
SUMMARY
FY 2017 FY 2016
FY 2017
Percentage
Increase
(Decrease)
Operating revenues $ 926,800 $ 866,991 6.9%
Operating expenses (808,860) (640,473) 26.3
Operating income 117, 940 226,518 (47. 9)
Nonoperating expenses, net (201,020) (144,463) 39.1
Income loss before capital contributions
and transfers (83,080) 82,055 (201 .2)
Capital contributions 11,212 10,424 7.6
Transfers to City and County of San Francisco (45,036) (42,542) 5.9
Changes in net position (116,904) 49,937 (334.1)
Total net position - beginning of year
167,073 117,136 42.6
Total net position at end of year $ 50,169 $ 167,073 (70.0)%
24
OPERATING REVENUES (IN MILLIONS)
FINANCIAL
SUMMARY
Aviation $545.3 59%
Concession 149.7 16
Parking & Transportation 150.6 16
Net Sales & Services 81.2 9
Total $926.8 100%
25
FINANCIAL
SUMMARY
Personnel $364.8 45%
Depreciation 265.8 33
Contractual Services 73.9 9
Light, Heat & Power 23.1 3
Services Provided by
Other City Departments
21.6 3
Repairs and Maintenance 34.9 4
Materials & Supplies 16.2 2
General & Administrative 4.4 1
Environmental Remediation
4.2 0
Total
$808.9 100%
OPERATING EXPENSES (IN MILLIONS)
