Exhibit_3_-_Report_of_the_Traffic_Engineers.pdf

Appendix A

REPORT OF THE TRAFFIC ENGINEERS

on the proposed issuance of

MIAMI-DADE COUNTY, FLORIDA,

AVIATION REVENUE BONDS, SERIES 2025A (AMT),

AVIATION REVENUE BONDS, SERIES 2025B (Non-AMT), and

AVIATION REVENUE BONDS, SERIES 2025C (Taxable)

Prepared for

Miami-Dade County Aviation Department

Miami-Dade County, Florida

Prepared by

LeighFisher

San Francisco, California

February 12, 2025

Exhibit 3

[THIS PAGE INTENTIONALLY LEFT BLANK]

Mr. Ralph Cutié, Aviation Director and Chief Executive Officer

Miami-Dade County Aviation Department

P. O. Box 592075

Miami, Florida 33159

Re: Report of the Traffic Engineers

Miami-Dade County, Florida, Aviation Revenue Bonds, Series 2025A (AMT), Aviation Revenue Bonds, Series 2025B (Non-AMT), and

Aviation Revenue Bonds, Series 2025C (Taxable)

Dear Mr. Cutié:

We are pleased to submit this Report of the Traffic Engineers (the Report) on certain aspects of the proposed issuance of Aviation Revenue Bonds, Series 2025A (AMT), Aviation Revenue Bonds, Series

2025B (Non-AMT), and Aviation Revenue Bonds, Series 2025C (Taxable) (collectively, the 2025ABC

Bonds), by Miami-Dade County (the County) on behalf of the Miami-Dade County Aviation

Department (MDAD). This letter and the accompanying attachment and exhibits constitute our

Report.

The proposed 2025ABC Bonds are being issued under the Amended and Restated Trust Agreement

(the Trust Agreement) dated as of December 15, 2002, and are secured by a pledge of Net

Revenues. Capitalized terms not otherwise defined in this Report have the meanings set forth in the

Trust Agreement and the Airline Use Agreement (the AUA).

The 2025ABC Bonds are being issued to provide funds, together with other legally available funds of

MDAD, for the purposes of: (i) refunding all of MDAD’s outstanding Commercial Paper Notes, Series

2021 (AMT), previously issued to finance capital improvements, (ii) financing or reimbursing MDAD for all or a portion of the cost of certain capital improvements, (iii) making certain reserve deposits,

(iv) paying capitalized interest on the 2025ABC Bonds, and (v) paying certain costs of issuance.

The purpose of this Report is to evaluate the ability of the County to satisfy the requirements of the

Rate Covenant (defined below) of the Trust Agreement throughout the forecast period, taking into account the Outstanding Bonds, the proposed 2025ABC Bonds, and future Bonds expected to be issued for capital development through the end of the forecast period. The forecast period covers

Fiscal Year (FY) 2025 through FY 2031. The County’s fiscal year ends on September 30.

AIRPORT SYSTEM

The County owns Miami International Airport (the Airport or MIA), the principal airport serving the

Miami-Dade County region, three active general aviation airports, one decommissioned general aviation airport, and one airport used primarily for flight training. The six airports together constitute the Airport System and are operated by MDAD.

Mr. Ralph Cutié

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CAPITAL IMPROVEMENT PROGRAM

MDAD has identified a Capital Improvement Program (CIP) for the Airport System, totaling $7.46 billion of project costs expected to be incurred between 2017 and the mid-2030s. MDAD categorizes the CIP into 24 subprograms. Through the end of FY 2024, approximately $1.19 billion

(15.9% of the total CIP) had been expended. A significant share of the CIP ($2.14 billion, or 28.7% of the total) is currently projected to be undertake after FY 2030 and so is not reflected in the forecasts discussed in this Report, which extend to FY 2031.

The table below summarizes the CIP costs by subprogram, and the projected spending profile.

Summary of CIP Spending by Subprogram and by Year

Miami-Dade County Aviation Department

(in thousands)

Spending ($000)

Through FY 2025 to FY 2031 &

CIP Subprogram FY 2024 FY 2030 beyond Total

MIA Central Base Apron and Utilities 78,664$ 12,341$ 17,477$ 108,482$

MIA Concourse E 237,790 55,454 38,933 332,177

MIA South Terminal Program 307,634 5,461 2,000 315,095

MIA Miscellaneous Projects 153,776 214,916 154,090 522,783

MIA Passenger Boarding Bridges 48,994 32,064 - 81,058

MIA Land Acquisition 105,519 61,652 - 167,171

MIA Terminal Wide Roof 6,315 261,685 40,000 308,000

MIA North Terminal 17,456 358,847 18,979 395,283

MIA Central Terminal 19,109 249,630 549,821 818,561

MIA Fuel Facilities 684 42,441 24,626 67,750

General Aviation Airports 35,030 171,674 8,923 215,627

Support Projects 40,143 14,782 - 54,925

MIA Airfield/Airside - 217,598 72,140 289,738

MIA South Terminal Expansion 14,939 616,678 226,001 857,618

MIA Terminal Wide Projects 19,619 444,751 56,799 521,169

MIA Cargo and Non-Terminal Buildings 7,285 376,752 133,720 517,757

MIA Landside/Roadways 4,115 138,800 44,816 187,731

Terminal Wide Restrooms 19,251 111,835 6,574 137,660

Terminal Bridge Subprogram - 19,000 - 19,000

Facilities Lifecycle Replacement (FLRP) - 93,320 - 93,320

Airport Wide Projects - 26,300 - 26,300

Conveyance Equipment Replacement - 193,500 315,000 508,500

Building Recertification 2,000 70,367 12,000 84,367

Program Contingency - - 418,412 418,412

MIA Reserve Maintenance Projects 69,297 348,789 - 418,086

Total Approved CIP 1,187,620$ 4,138,639$ 2,140,309$ 7,466,569$

Source: MDAD.

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The table below summarizes funding sources for the CIP.

Summary of CIP Funding

Miami-Dade County Aviation Department

Amount

Funding Sources ($000)

Spending through 9/30/24 1,187,620$

Spending in future years

Commercial Paper previously issued (a) 60,831$

PFCs pay-as-you-go 93,892

Florida DOT grants 95,710

FAA grants 168,881

Reserve Maintenance Funds 348,738

Other funds 127,149

Subtotal 895,202$

Plus: Future Bond financing (b) 5,383,747

Total spending 10/1/24 onwards 6,278,949$

Total approved CIP 7,466,569$

(a)

(b)

Series 2025ABC Bonds (Winter 2025) 320,000$

Series 2025DE Bonds (Fall 2025) 500,000

Series 2026 Bonds (Fall 2026) 575,000

Series 2027 Bonds (Fall 2027) 650,000

Series 2028 Bonds (Fall 2028) 700,000

Series 2029 Bonds (Fall 2029) 700,000

Total Bond issues through 2029 3,445,000

Series 2030 and later Bond issues 1,938,747

Total 5,383,747$

Source: MDAD.

Note: The Series 2025ABC Bond issue is expected to total approximately $500 million of net proceeds ($180 million for Commercial Paper paydown plus $320 million of funding for project costs).

Currently outstanding Commercial Paper balances of $180 million expected to be repaid with Series 2025ABC Bond proceeds.

Including approximately the following Bond issuance timing and net new money Bond proceeds:

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MDAD intends to issue Aviation Revenue Bonds to finance a portion of the CIP. Where applicable, the elements of the CIP have been, or are expected to be, reviewed and approved by the airlines as part of the majority-in-interest (MII) review process. As of the date of this Report, approximately

$3.67 billion of improvements have been MII reviewed and approved by the airlines. For purposes of this Report, the proposed 2025ABC Bonds and the anticipated future Bonds required to complete the CIP (except for the anticipated Bond issuance to be undertaken to fund capital spending after FY

2030) have been included in the financial analysis.

MDAD expects to continue to develop and finance needed capital improvements at the Airport, including repair and rehabilitation of existing facilities and development of new facilities to accommodate anticipated airline traffic demand at the Airport over the long-term. These projects would only be undertaken as needed, based on market demand for airfield facilities, terminal facilities, gates, and landside facilities.

MDAD is currently reviewing its capital needs for the long-term and expects to add projects totaling approximately $4.5 billion in cost that are in addition to the current $7.4 billion CIP, and are not reflected in the financial projections described in this Report. The specifics of project scopes, costs and timing of development are yet to be determined, but substantially all of the associated additional capital spending is expected to occur beyond the forecast period described in this Report.

TRUST AGREEMENT

The County issues Aviation Revenue Bonds for improvements to the Airport System on behalf of

MDAD pursuant to the terms and conditions set forth in the Trust Agreement between the County and the Trustee and Co-Trustee. Aviation Revenue Bonds are special, limited obligations of the

County payable solely from and secured by Net Revenues of the Port Authority Properties (PAP), which generally includes all properties in the Airport System, except for third-party-financed facilities. The faith and credit of the County are not pledged to the payment of Aviation Revenue

Bonds. Principal and Interest Requirements on Outstanding Bonds are payable from the Sinking

Fund, to which the County has covenanted to deposit sufficient Net Revenues after retention of an operating reserve. Discussions in this Report regarding the Trust Agreement and the AUA are not intended to be comprehensive or definitive, and all such references are qualified in their entirety by reference thereto.

Security for the Proposed 2025ABC Bonds

The proposed 2025ABC Bonds are to be issued under the Trust Agreement on a parity basis with other Outstanding Bonds and are likewise to be secured by Net Revenues. The proposed 2025ABC

Bonds are to be issued as fixed-rate debt.

Pursuant to the Trust Agreement, unless otherwise provided by resolution of the Board of County

Commissioners (the Board), Passenger Facility Charge (PFC) revenues are excluded from Revenues and, therefore, are not included in Net Revenues, and are not pledged to the payment of the

Aviation Revenue Bonds. However, MDAD has historically elected to use PFC revenues to pay principal and interest on Aviation Revenue Bonds and plans to continue to do so in the future at its discretion. Pursuant to the Trust Agreement, Principal and Interest Requirements exclude the amount of funds set aside or deposited for debt service payments in the Bond Service Account.

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Thus, for purposes of this Report, principal and interest expected to be paid from PFC revenues are excluded in computing Principal and Interest Requirements for the corresponding forecast fiscal years. Assumptions regarding the use of PFC revenues to pay Principal and Interest Requirements are as described in this Report.

Customer facility charge (CFC) revenues are also not included in the definition of Revenues under the

Trust Agreement. CFC revenues are used to pay the operating costs of the Rental Car Center (RCC), among other uses.

Rate Covenant

Section 501 of the Trust Agreement (the Rate Covenant) provides that Revenues will, at all times, be sufficient to: (1) provide funds for the payment of Current Expenses; (2) provide for making deposits to the Reserve Maintenance Fund in the amounts recommended by the Consulting Engineers; and

(3) provide for (a) deposits to the Sinking Fund (other than the Reserve Account) that in each fiscal year will equal not less than 120% of the Principal and Interest Requirements due in that fiscal year and (b) deposits to the Reserve Account and payments to reimburse providers of Reserve Facilities.

AIRLINE AGREEMENTS

In addition to the Trust Agreement, the AUA with the airlines operating at the Airport is also a key document governing MDAD’s financial operations.

Airline Use Agreement

The County has entered into separate but substantially similar AUAs with various airlines serving the

Airport (the Signatory Airlines). The AUA became effective on August 10, 2018, for approximately a

15-year term through April 30, 2033. The AUA provides that the County, acting through the Board, has the right to calculate a landing fee using an Airport System residual methodology, and to collect such fee from the Signatory Airlines so that related revenues together with revenues from other sources will, at all times, be sufficient to meet the Revenue Requirement, including (1) the Rate

Covenant and other requirements under the Trust Agreement; (2) certain other requirements, including funding of certain indebtedness payable from moneys in the Improvement Fund; and

(3) funding of a discretionary capital account. The Revenue Requirement is described in detail later in this Report.

The Signatory Airlines have agreed to pay landing fees as long as they operate at the Airport or at any other airport in the Airport System. If any airline ceases operations at the Airport System, then it would have no obligation to pay landing fees, and the landing fees payable by other Signatory

Airlines would, other things being equal, be increased to make up for the landing fee revenue that would otherwise have been received from airlines terminating service.

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Substantially all of the airlines operating at MIA have signed the AUA. American Airlines and its affiliate, American Eagle*, accounted for approximately 60.2% of all enplaned passengers at the

Airport during FY 2024.

Terminal Building Lease Agreements

MDAD has also entered into separate but substantially similar Terminal Building Lease Agreements

(TBLA) with various airlines (including American Airlines) providing for the general right of the

Signatory Airlines to use and occupy space in the passenger terminal premises for a 5-year term, and the specific right to designated lease space as identified in that airline’s TBLA. Under the TBLA, the separate provisions for specific space are subject to cancellation by either party on 30-days’ notice.

SCOPE OF THE REPORT

This Report was prepared to evaluate the ability of the County to generate Revenues sufficient to satisfy the requirements of the Rate Covenant throughout the forecast period, taking into account

Outstanding Bonds, the proposed 2025ABC Bonds, and anticipated future series of Aviation Revenue

Bonds to be issued during the forecast period to complete projected CIP spending through FY 2030.

In preparing the Report, we analyzed:

Future airline traffic demand at the Airport, considering the demographic and economic characteristics of the region served; historical trends in airline traffic; recent airline service development and airfares; and other key factors that may affect future airline traffic at the

Airport

The status, schedule, and estimated costs of the CIP

Historical and future awarded and anticipated grants from the Federal Aviation

Administration (FAA), the State of Florida, and the Transportation Security Administration

(TSA)

Sources and uses of funds and annual Principal and Interest Requirements for the proposed

2025ABC Bonds and the anticipated future Bonds

Historical relationships among revenues, expenses, and airline traffic at the Airport

Historical and forecast PFC revenues, and MDAD’s intention to use PFC revenues to reduce the amount of the Principal and Interest Requirements and to pay capital project costs on a pay-as-you-go basis during the forecast period

Historical financial results for the Airport System, estimated unaudited FY 2024 financial results, the FY 2025 budget, projected staffing requirements, and other operational considerations

*All references to American Eagle in this Report, unless otherwise noted, refer to American Eagle Airlines together with other regional affiliates of American Airlines operating under the American Eagle brand.

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The County’s policies and contractual arrangements relating to the use and occupancy of

Airport System facilities, including the calculation of airline rentals, fees, and charges under the AUA; the operation of concession privileges; and the leasing of buildings and grounds

We have relied upon MDAD and its other consultants regarding the status of the CIP and plan for future projects, including Hilltop Securities Inc., MDAD’s financial advisor, for the projected debt service on the proposed 2025ABC Bonds and anticipated future Bonds for the CIP.

We also identified key factors upon which the future financial results of the Airport System may depend and, with MDAD management, formulated assumptions about those factors. Based on those assumptions, we assembled the financial forecasts presented in the exhibits provided at the end of this Report.

SUMMARY OF FORECASTS

As shown in Exhibit G and the table below, the residual cost rate-setting methodology for computing landing fee rates is forecast to result in calculated Net Revenues sufficient to meet the requirements of the Rate Covenant, based on the assumption that the passenger and all-cargo airlines will collectively pay landing fees and other rentals, fees, and charges calculated under the AUA.

Principal and Interest Requirements shown in the table below are net of PFC revenues MDAD has deposited or intends to deposit for the payment of debt service.

The table also presents estimates and forecasts of passenger airline payments to MDAD in the form of terminal rentals, landing fees, and other charges under the AUA, expressed on a per enplaned passenger basis. The landing fees, passenger terminal rentals and user fees, and related terminal charges paid by the passenger airlines are often expressed in relation to numbers of enplaned passengers; the ratio is known as airline payments per enplaned passenger, or cost per enplaned passenger (CPE). The CPE represents the average unit cost paid to an airport operator by the passenger airlines serving the Airport.

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Summary of Forecasts

Miami-Dade County Aviation Department

For Fiscal Years Ending September 30

(in thousands, except ratios)

Assumptions Underlying the Financial Forecasts

The financial forecasts are based on information and assumptions that were provided by, or reviewed with and agreed to by, MDAD management. Accordingly, the forecasts reflect management’s expected course of action during the forecast period and, in management’s judgment, present fairly the expected financial results of the Airport System.

Those key factors and assumptions that are significant to the forecasts are set forth in the attachment, “Background, Assumptions, and Rationale for the Financial Forecasts.” The attachment should be read in its entirety for an understanding of the forecasts and the underlying assumptions.

In our opinion, the underlying assumptions provide a reasonable basis for the forecasts. However, any forecast is subject to uncertainties and there can be no assurance that the forecast financial results will be realized. Inevitably, some assumptions will not be realized, and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between the forecast and actual results, and those differences may be material. Neither LeighFisher nor any person acting on behalf of LeighFisher makes any warranty, expressed or implied, with respect to the information, assumptions, forecasts, opinions, or conclusions disclosed in the Report.

We have no responsibility to update this Report for events and circumstances occurring after the date of the Report.

Budget

2025 2026 2027 2028 2029 2030 2031

Enplaned Passengers 28,000 28,300 28,800 29,300 29,800 30,300 30,800

% change 1.1% 1.8% 1.7% 1.7% 1.7% 1.7%

Revenues (a) 1,056,817$ 1,116,826$ 1,208,371$ 1,334,802$ 1,435,942$ 1,554,172$ 1,655,629$

Interest income 22,184 17,324 17,264 17,568 18,390 19,612 20,872

Current Expenses (736,756) (788,594) (828,024) (869,425) (916,548) (975,035) (1,023,787)

Net Revenues 342,245$ 345,556$ 397,611$ 482,945$ 537,784$ 598,749$ 652,715$

Deposit to Reserve Maint. Fund (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000)

302,245$ 305,556$ 357,611$ 442,945$ 497,784$ 558,749$ 612,715$

Gross Debt Service 362,050$ 384,979$ 420,343$ 460,995$ 505,306$ 554,016$ 602,075$

Deposit of PFC revenues and set-asides (158,000) (166,000) (156,000) (126,000) (126,000) (126,000) (126,000)

Net Debt Service 204,050$ 218,979$ 264,343$ 334,995$ 379,306$ 428,016$ 476,075$

Debt Service Coverage 1.48 1.40 1.35 1.32 1.31 1.31 1.29

Airline Cost per Enplaned Passenger 17.45$ 19.60$ 21.87$ 24.48$ 26.28$ 28.81$ 30.62$

(a) Excluding interest income.

Sources: MDAD for Budget FY 2025; LeighFisher for Forecast.

Forecast

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We appreciate the opportunity to assist the County and MDAD on this proposed financing.

Respectfully submitted, LEIGHFISHER

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Attachment

BACKGROUND, ASSUMPTIONS, AND RATIONALE

FOR THE FINANCIAL FORECASTS

REPORT OF THE TRAFFIC ENGINEERS

on the proposed issuance of

MIAMI-DADE COUNTY, FLORIDA,

AVIATION REVENUE BONDS, SERIES 2025A (AMT),

AVIATION REVENUE BONDS, SERIES 2025B (Non-AMT), and

AVIATION REVENUE BONDS, SERIES 2025C (Taxable)

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CONTENTS

Page

OVERVIEW ................................................................................................................................ A-19

Airports in the System ................................................................................................. A-19

Existing Facilities at Miami International Airport ........................................................ A-20

Terminal Facilities .............................................................................................. A-20

Landside Facilities .............................................................................................. A-21

Airfield Facilities ................................................................................................ A-22

Cargo and Other Facilities ................................................................................. A-23

Capital Improvement Program .................................................................................... A-23

AVIATION DEMAND AND AIRLINE TRAFFIC ANALYSIS .............................................................. A-29

Airport Service Region ................................................................................................. A-29

Demand for Passenger and Cargo Service .................................................................. A-31

Economy of the Airport Service Region............................................................. A-31

Key International Markets ................................................................................. A-47

International Trade Sector ................................................................................ A-57

Airline Service and Traffic ............................................................................................ A-62

Airport Rankings and Roles ............................................................................... A-64

Airline Service at the Airport and Competing Airports ..................................... A-77

Historical Airline Traffic at the Airport .............................................................. A-88

Key Factors Affecting Future Airline Traffic ................................................................. A-96

National Economic Conditions .......................................................................... A-96

International Economic and Geopolitical Conditions ........................................ A-97

Financial Health of the Airline Industry ............................................................. A-97

Airline Consolidation ......................................................................................... A-99

Airline Service and Routes ................................................................................. A-100

Airline Competition and Airfares ....................................................................... A-100

Availability and Price of Aviation Fuel ............................................................... A-101

Aviation Safety and Security Concerns .............................................................. A-102

Public Health Concerns ...................................................................................... A-103

Climate Change Concerns .................................................................................. A-104

Capacity of the National Air Traffic Control System .......................................... A-104

Capacity of the Airport ...................................................................................... A-105

Airline Traffic Forecasts ............................................................................................... A-105

Airline Traffic Forecast Assumptions ................................................................. A-105

Passenger Forecast Summary ............................................................................ A-106

Landed Weight Forecast .................................................................................... A-106

FINANCIAL ANALYSIS ................................................................................................................ A-110

Framework for Financial Operations ........................................................................... A-110

The Trust Agreement ......................................................................................... A-110

Net Revenues..................................................................................................... A-110

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CONTENTS (continued)

Page

Application of Revenues .................................................................................... A-110

Rate Covenant ................................................................................................... A-111

Conditions for Issuing Additional Bonds............................................................ A-111

Airline Agreements and Related Fees ......................................................................... A-113

Airline Use Agreement ...................................................................................... A-113

Key Nonairline Agreements ............................................................................... A-117

The Passenger Facility Charge Program ...................................................................... A-117

Bond Issuance and Debt Service ................................................................................. A-118

The Proposed 2025ABC Bonds and Anticipated Future Bonds ......................... A-118

Debt Service Paid from PFC Revenues .............................................................. A-119

Other Debts Payable from Revenues ................................................................ A-119

Current Expenses ......................................................................................................... A-120

Revenues ..................................................................................................................... A-120

Aviation Fees ..................................................................................................... A-120

Commercial Revenues ....................................................................................... A-122

Rental Revenues ................................................................................................ A-125

General Aviation Airports Revenues ................................................................. A-126

Other Revenues ................................................................................................. A-126

Passenger Airline Payments ........................................................................................ A-126

Application of Revenues .............................................................................................. A-126

Rate Covenant Compliance and Debt Service Coverage ............................................. A-127

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TABLES

Page

1 Gate Distribution and Use by Concourse .......................................................................... A-21

2 Public Parking Facilities ...................................................................................................... A-22

3 Capital Improvement Program Costs ................................................................................ A-26

4 Capital Improvement Program Funding Plan .................................................................... A-28

5 Economic Projections for the U.S. Economy ..................................................................... A-33

6 Economic Projections for the State and Airport Service Region ....................................... A-35

7 Historical and Projected Population Trends ...................................................................... A-37

8 Total Nonagricultural Employment Trends ....................................................................... A-39

9 Per Capita Personal Income Trends ................................................................................... A-40

10 Visitors to Miami-Dade County ......................................................................................... A-42

11 Top 10 Domestic Overnight Visitors .................................................................................. A-43

12 Top 10 International Overnight Visitors ............................................................................ A-43

13 Cruise Ship Passengers ...................................................................................................... A-45

14 PortMiami Trade ................................................................................................................ A-46

15 Latin America and The Caribbean: Historical Economic Indicators ................................... A-50

16 Latin America and The Caribbean; Selected Economic Indicators .................................... A-52

17 Miami Customs District Exports and U.S. Total ................................................................. A-58

18 Miami Customs District Imports and U.S. Total ................................................................ A-59

19 Historical Enplaned Passengers by Airline Group .............................................................. A-63

20 Enplaned Passengers at Top-Ranking U.S. Airports ........................................................... A-65

21 Originating Passengers at Top-Ranking U.S. Airports ........................................................ A-66

22 Connecting Passengers at Top-Ranking U.S. Airports ....................................................... A-67

23 International Passengers at Top-Ranking U.S. Airports ..................................................... A-68

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TABLES (continued)

Page

24 Scheduled Departing Seats on Flights Operated by American at U.S. Airports ................ A-69

25 American Airlines Enplaned Passengers at its Principal Airports ...................................... A-70

26 Scheduled Departing Seats by Alliance Group .................................................................. A-72

27 Scheduled International Departing Seats, by World Region Destination .......................... A-74

28 Comparative Trends in International Air Cargo ................................................................. A-76

29 Trends in Scheduled Passenger Service ............................................................................. A-81

30 Domestic Originating Patterns and Airline Service ............................................................ A-84

31 International Departing Passengers by World Region ...................................................... A-85

32 Ranking of Cities in the United States by Gateway Shares of International

Departing Passengers ........................................................................................................ A-87

33 Historical Enplaned Passengers, by Component ............................................................... A-88

34 Airline Market Shares of Enplaned Passengers ................................................................. A-92

35 Trends in Total Air Cargo Tonnage, by Type of Airline ...................................................... A-93

36 Summary of Airlines Reporting Air Cargo .......................................................................... A-94

37 Airline Market Shares of Air Cargo Tonnage ..................................................................... A-95

38 Enplaned Passenger Forecast ............................................................................................ A-108

39 Forecasts of Departing Seats, Flight Operations, and Aircraft Landed Weight ................. A-109

40 Summary of Key Provisions of the AUA ............................................................................. A-114

41 Bond Financing Assumptions ............................................................................................. A-118

42 FY 2024 Revenues .............................................................................................................. A-121

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FIGURES

Page

1 Airport Layout Plan ............................................................................................................ A-20

2 Airport Service Region ....................................................................................................... A-30

3 Historical Enplaned Passengers ......................................................................................... A-62

4 Passengers Enplaned on Flights from the United States to Cuba ..................................... A-75

5 U.S. Airport Served by Daily Scheduled Nonstop Passenger Flights ................................. A-78

6 Airports in Mexico, Central America, South America, and the Caribbean Served by Scheduled Nonstop Passenger Flights .......................................................................... A-79

7 Transatlantic Destinations Served by Scheduled Nonstop Passenger Flights ................... A-80

8 Enplaned Passengers ......................................................................................................... A-82

9 Trends in Domestic Originating Passengers and Airline Fares .......................................... A-83

10 Enplaned Passenger Trends by Passenger Segment ......................................................... A-89

11 Originating Passenger Trends by Type of Passenger ......................................................... A-90

12 Historical Enplaned Passengers on U.S. Airlines ................................................................ A-97

13 Net Income for U.S. Airlines .............................................................................................. A-98

14 Historical Domestic Yield for U.S. Airlines ......................................................................... A-101

15 Historical Monthly Jet Fuel Prices for U.S. Airlines ............................................................ A-102

16 Enplaned Passenger Forecast ............................................................................................ A-107

17 Application of Port Authority Properties Revenues Under the Trust Agreement ............. A-112

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EXHIBITS

Page

A Sources and Uses of Funds ................................................................................................ A-128

B Principal and Interest Requirements ................................................................................. A-129

C Passenger Facility Charge Revenues .................................................................................. A-130

D Current Expenses ............................................................................................................... A-131

E Revenues ........................................................................................................................... A-132

E-1 Airline Landing Fees ........................................................................................................... A-133

E-2 Terminal and Concourse Use Fees and Revenues ............................................................. A-134

E-3 Airline Payments per Enplaned Passenger ........................................................................ A-135

F Application of Revenues .................................................................................................... A-136

G Rate Covenant Compliance ............................................................................................... A-137

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OVERVIEW

Miami-Dade County operates the Airport System through MDAD with policy guidance from the

County Mayor and the Board of County Commissioners (the Board). The County operates under a strong mayoral form of government; the Mayor is the chief administrative officer and appoints the

Aviation Director, who serves as the chief administrative officer of MDAD. MDAD operates the

Airport System as a financially self-sufficient entity, without property tax or budgetary support from the County.*

In 1973, the Board established the Dade County Aviation Department as the successor organization to the Dade County Port Authority and, in 1997, this organization was renamed the Miami-Dade

Aviation Department to reflect the change in the County’s name to Miami-Dade County. The term

“Port Authority Properties” (PAP) as used in the Trust Agreement remains in effect.

PAP includes all properties financed or refinanced by debt obligations issued under the Trust

Agreement and any other properties added to the PAP pursuant to Section 1308 of the Trust

Agreement. PAP generally includes all land in the Airport System, the runways and taxiways in the

Airport System, the passenger terminal building at the Airport, and most other infrastructure of the

Airport System.

The County pledges Net Revenues derived from PAP to secure bonds issued under the Trust

Agreement. All properties that were not financed or refinanced using bonds backed by PAP revenues or that were not converted to PAP status under Section 1308 of the Trust Agreement are referred to herein as Non-Port Authority Properties (NPAP). Such properties are mainly tenant-financed cargo facilities and may include other types of tenant-financed facilities. Any NPAP can be added to PAP subject to the provisions of Section 1308 of the Trust Agreement. As of the date of this Report, the County has no plan to add any existing NPAP to PAP under the Trust Agreement.

AIRPORTS IN THE SYSTEM

The Airport System consists of five active airports and one decommissioned airport. MIA is the only commercial-service airport in the Airport System and accounted for approximately 98% of the

Revenues of the Airport System in FY 2024. MIA occupies approximately 3,230 acres of land in the unincorporated area of the County, approximately 7 miles west of the downtown area of the City of

Miami and 9 miles west of the City of Miami Beach.

Miami-Opa-locka Executive Airport is the largest general aviation airport in the Airport System and is designated as a reliever to MIA. Kendall-Tamiami Executive Airport is one of the busiest general aviation airports in Florida. Homestead General Aviation Airport serves sport, agricultural, and other private users. Dade-Collier Training and Transition Airport is used for commercial air carrier and military flight training. Opa-locka West Airport was decommissioned in 2006.

*In 2010, the County issued Double-Barreled Aviation Bonds (General Obligation), Series 2010 to fund certain projects at the Airport, which were refunded in October 2020 (the 2020 Double-Barreled Bonds). Debt service on the 2020 Double-Barreled Bonds is expected to be paid from airline rentals, fees, and charges during the forecast period.

A-20

EXISTING FACILITIES AT MIAMI INTERNATIONAL AIRPORT

Existing facilities at the Airport include terminal, landside, airfield, cargo, and other facilities.

Terminal Facilities

Figure 1 shows the Airport Layout Plan (ALP) for MIA. The terminal complex at MIA consists of a single horseshoe-shaped passenger terminal with six concourses (designated by a letter code) radiating from the passenger terminal building. Counterclockwise from the northeast, the concourses are D*, E, F, G, H, and J.

Figure 1

Airport Layout Plan

MIC = Miami Intermodal Center; RCC = Rental Car Center.

*Former Concourses A-D were renamed Concourse D in 2009.

A-21

Concourse D and the associated terminal areas are referred to as the North Terminal. Concourses E, F, and G and associated terminal areas between those concourses are referred to as the Central

Terminal. Concourses H and J, together with the associated terminal area between those concourses, are referred to as the South Terminal. Table 1 shows the distribution and use of gates by concourse.

Table 1

Gate Distribution and Use by Concourse

Miami International Airport

(gate counts as of November 2024; departures and seats for March 2025)

Notes: Numbers may not add to totals shown because of rounding.

Excludes charter (non-scheduled) activity.

Gate utilization data provided by MDAD was used to estimate the number of departures and seats on American Airlines in concourses D and E.

(a) Including E Satellite, with one preferential gate and 8 common use gates (9 total).

Sources: MDAD; Airline Data Inc, Schedules database, accessed December 2024.

Federal Inspection Services (FIS) centers for U.S. Immigration and Customs Enforcement are located in Concourse E, Concourse J, and in the North Terminal. Passengers on international flights arrive at the Airport through the dual-purpose gates located on Concourses D, E, F, H, and J, which could accommodate both international and domestic operations. MIA’s terminals also provide facilities and services for processing interline and international in-transit passengers. Additional facilities include the 259-room Miami International Airport Hotel (the Hotel), owned by MDAD and located within the terminal building near Concourse E.

Landside Facilities

Table 2 presents the number of public parking spaces at MIA as of September 2024. Most of the parking spaces are provided in two parking garages, referred to as the Dolphin and Flamingo

Average daily departures

Gates Per Per

Preferential Common Total Number gate Number departure

North Terminal

Concourse D 61 - 61 333.9 5.5 52,029.9 156

North Terminal 61 - 61 333.9 5.5 52,029.9 156

Central Terminal

Concourse E (a) 8 11 19 62.9 3.3 11,661.3 185

Concourse F 4 10 14 41.1 2.9 8,265.9 201

Concourse G 4 9 13 23.4 1.8 3,777.2 162

Central Terminal 16 30 46 127.4 2.8 23,704.4 186

South Terminal

Concourse H 8 5 13 69.0 5.3 12,525.4 182

Concourse J - 15 15 50.2 3.3 11,056.3 220

South Terminal 8 20 28 119.1 4.3 23,581.7 198

AIRPORT TOTAL 85 50 135 580.4 4.3 99,316.1 171

Average daily departing seats

A-22 garages, located within the semicircle formed by the passenger terminal building and its access roadway.

Direct access to the bi-level roadway serving the passenger terminal building is provided via NW

21st Street. LeJeune Road (NW 42nd Avenue), which borders the Airport on the east, is the arterial road feeding NW 21st Street. LeJeune Road draws traffic from the north via State Road 112 (Airport

Expressway) and Okeechobee Road, and from the south via State Road 836 (Dolphin Expressway) and Flagler Street. Airport Expressway and Dolphin Expressway connect with north-south

Interstate 95 east of the Airport. A four-lane roadway directly connects Airport Expressway with

Airport property, bypassing LeJeune Road. Dolphin Expressway connects with north-south State

Road 826 (Palmetto Expressway) and the Florida Turnpike west of the Airport.

Table 2

Public Parking Facilities

Source: MDAD, September 2024.

The Florida Department of Transportation (FDOT) financed and constructed a Rental Car Center in the Miami Intermodal Center (MIC). The MIC is the connecting point from the Metrorail, an elevated rapid transit system in South Florida, to the MIA Mover, which is an automated people mover system that connects the MIC/RCC with the terminal complex.

Airfield Facilities

The Airport has four air carrier aircraft runways, consisting of three parallel east-west runways

(8L-26R, 9-27, and 8R-26L) and a crosswind northwest-southeast runway (Runway 12-30). The parallel runways are 10,500 feet, 13,000 feet, and 8,600 feet long, respectively, and Runway 12-30 is

9,355 feet long. Runways 8L-26R, 9-27, and 12-30 are each 150 feet wide, and Runway 8R-26L is

200 feet wide. Runways 8R-26L and 9-27 can accommodate all passenger aircraft currently in use and are equipped with parallel precision approach capabilities. Runways 9-27, 8R-26L, and 12-30

Parking Facilities Spaces

Garage parking

Dolphin Garage 4,065

Flamingo Garage 3,009

Park 1 Garage 318

Total garage parking 7,392

Other

High-vehicle 57

Economy Park & Ride 350

Valet parking 242

Total other spaces 649

Total parking spaces 8,041

A-23 provide for Category I instrument landing system precision approaches and Runway 8L-26R, provides for nonprecision localizer-only approaches.

Cargo and Other Facilities

Cargo and other facilities are concentrated on the north and west sides of the Airport. The cargo warehouse areas serve a combination of belly cargo (cargo carried in the belly compartments of passenger aircraft) and freighter cargo (cargo carried in dedicated all-cargo aircraft). Other facilities include aircraft maintenance hangars and shops; aircraft simulator and flight training facilities; test cell engine facilities; a Cargo Clearance Center that houses U.S. Customs and Border Protection, the

U.S. Department of Agriculture and the Food and Drug Administration; a fixed base operator (FBO) and General Aviation Center; two aircraft rescue and firefighting (ARFF) stations; a U.S. Postal

Service center; and the FAA’s Airport Traffic Control Tower and Terminal Radar Approach Control facility.

CAPITAL IMPROVEMENT PROGRAM

MDAD has identified a Capital Improvement Program (CIP) for the Airport System, totaling $7.46 billion of project costs expected to be incurred between 2017 and the mid-2030s. MDAD categorizes the CIP into 24 subprograms. Through the end of FY 2024, approximately $1.19 billion

(15.9% of the total CIP) had been expended. A significant share of the CIP ($2.14 billion, or 28.7% of the total) is currently projected to be undertake after FY 2030.

Among the major elements of the CIP are following:

South Terminal Expansion (estimated cost of $616.7 million between FY 2025 and FY 2030):

The major component of this subprogram consists of the MIA South Terminal Expansion East

Phase 1 (Building-Apron, South Terminal Ground Service Equipment (GSE) & 20th Street

Modifications) which comprises one major project that will include scope for the South

Terminal Expansion East; the South Terminal Apron and Utilities Relocation; and the GSE

Building. The South Terminal Expansion includes a three-level expansion of the South

Terminal to the east. It will add six domestic contact gates with their associated holdrooms and facilities along with three hardstand positions. The new facility will include baggage systems and connections to the existing Central and South Terminals baggage screening system.

Terminal Wide Projects (estimated cost of $444.8 million between FY 2025 and FY 2030):

This subprogram includes tenant relocation to support the south and central terminal projects, CBP Network and Circuit Upgrades, Police/Fire Microwave System Relocation, the

MIA Terminal Wide Two-Way Radio MDFR, and the MIA Public Address System Infrastructure hardware upgrade. Scope also includes the passenger boarding bridges (PBB) Phase II project, which consists of the replacement of 35 PBBs throughout the concourses. The scope includes PC Air, hose management systems, Visual Docking Guidance System interlock and safe-gate, potable water cabinets, pre-cool DX systems, glycol pumps supports and

400Hz. The subprogram also includes the MIA Security Checkpoints Upgrades at South

Terminal, Central Terminal, and North Terminal D2, replacing the existing x-ray machines with full size automated screening lanes that will provide a higher throughput of passengers per lane, greatly improving passenger flow. Also included in this subprogram are the MIA

Central and South Terminal Bag Claim Optimization Phase 2 projects which will replace the existing domestic baggage claim devices in the Central and South Terminals that have

A-24 reached the end of their useful life. The Concourse F-to-H Interconnector will provide secure and sterile connectivity from Concourse F to Concourse J and improve efficiencies in security checkpoints that will improve MIA passenger circulation and airline operations.

Cargo and Non-Terminal Buildings (estimated cost of $376.8 million between FY 2025 and

FY 2030): This subprogram consists of multiple projects, including the demolition of several buildings; the environmental assessment and remediation of these buildings; and tenant relocations. The apron and airside improvements to Building 702 to convert it from belly cargo to a freight cargo facility are part of this subprogram. The subprogram also includes a new GSE Facility for the North Terminal, and the Consolidated Office Complex which consists of the Landside & Finance Division and Administration Offices Relocation to Terminal D. Part of this subprogram are also the West Cargo Truck Parking, AAR-Group III Aircraft Hangar

Facility with a three-story back support Shop, a GSE facility, and the IBC Airways construction of a two-story hangar/office building with ramp/apron improvements.

North Terminal (estimated cost of $358.8 million between FY 2025 and FY 2030): This includes the Concourse D West Extension - D60 (Building Expansion and Apron & Utilities) project which consists of the redevelopment of North Terminal’s Regional Commuter Facility to serve larger aircraft and to provide adequate holdroom space and improve the passenger experience. The subprogram includes the MIA North Terminal Ramp Level Restrooms project which encompasses the modification/upgrade of nine existing employee restrooms and construction of three new ones at the ramp level of the North Terminal area to comply with Florida Building Code and meet AA operational needs based on current occupancy loads. In addition, the MIA North Terminal Gate Infrastructure Upgrades, and MIA North

Terminal Gate Optimization projects which are currently under schematic design are part of this subprogram and consist of up-gauging gates for larger aircraft. Another project added to the subprogram is the North Terminal Baggage System TSA Recapitalization project that includes upgrades to the existing in-line TSA screening equipment within the North Terminal

Baggage Handling System (BHS). The implementation of this project is required to meet current TSA and Department security requirements. The North Terminal Additional Skytrain

Vehicles that includes scope to purchase additional four-car train (two (2)…