1 of 35

Tucson Association of REALTOR

Danette Bewley

President/CEO

March 27, 2026

2 of 35

3 of 35

Tucson International Airport

4.0

Million Annual Passengers

72

Peak Daily Departures

19

Nonstop Destinations

7

Airlines

4 of 35

Infrastructure |Airfield Safety Enhancement(ASE)Project

5 of 35

Infrastructure | Airfield Safety Enhancement Program

,

  • $400+ million Safety and Standards Program to meet FAA Regulations; including demolition, re-alignment and construction of second parallel runway
  • New Taxiways; improved geometry
  • Improvements that support Air National Guard (ANG)
  • Project Completion (2027 - 2030)
    • Dependent on federal funding

6 of 35

ASE Program | Current Progress Picture

,

7 of 35

Checked Baggage Inspection System Project | Enabling Project for Future Terminal Modernization

8 of 35

Checked Baggage Inspection System (CBIS) Design

,

9 of 35

CBIS Design

,

2025 – 2029

Estimated $1.9M for design grant funding for CBIS Project

Estimated $28.5M for construction grant funding for CBIS Project

Total Project Cost forecasted at $90M

10 of 35

Future Terminal Modernization (Concept)

,

2030 – 2040

Estimated $1.1B

(in 2023 dollars) for project

Funding sources have not been formalized

11 of 35

Air Service Development

12 of 35

Tucson Market Overview

  • Tucson’s catchment area is home to over 1.4 million people and ranks as the 33rd largest city in the US.
  • Tucson’s population is growing faster than most of its peers in the Western US.
  • Tucson welcomes 7 million visitors each year.
  • Tucson generates the highest fares and load factors in the southwest US.
  • Tucson is projected to serve 4.1 million passengers in 2026

13 of 35

When local service is available, Tucson passengers have demonstrated that they will not drive to Phoenix as frequently.

When TUS has appropriate service levels (LAX), leakage is below 20%.

When TUS does not have nonstop service and PHX does, leakage can exceed 75%.

TUS marketing is focused on TUS’ ease of use, the benefits of using the local airport, consumer promotions, and business commitments and incentives.

Source: Airline Data, Inc.

PHX 33%

TUS 64%

AZA

3%

TUS Leaks One-Third of Its Traffic to PHX

Originating Airport for Tucson Catchment Area Passengers

Calendar Year 2025

Phoenix Leakage

14 of 35

Source: Airline Data, Inc.

TUS Still Commands High Fares

Average One-Way Fare; Lower 48 Small/Medium Hubs

1H 2025

Fare Performance (Small/Medium)

15 of 35

Source: Airline Data, Inc.

TUS Still Has the Highest Average Fare Of Peer Airports in the Western US

Average One-Way Fare

1H 2025

Fare Performance (Western US)

16 of 35

Source: Airline Data, Inc. DOT T100, Scheduled Service

Despite Slightly Higher Fares and Capacity Increases, TUS Still Enjoys Solid Load Factors

Average Load Factor at Western US Small and Medium Hub Airports

January-October 2025

AVERAGE = 76.3%

Load Factors

17 of 35

Source: Airline Data, Inc.

TUS Fare Premium vs. PHX Reverted to Normal As Capacity Rose

TUS vs. PHX Fare Premium

18 of 35

Source: Carrier Reports

Load Factors Have Recovered After Capacity Changes

TUS Average Load Factor

Load Factor Changes

19 of 35

Source: Airline Data, Inc.

TUS Seasonality is Similar to PHX and Much Less than PSP

TUS/PHX/PSP O&D Passengers: Quarterly Index

Market Seasonality

20 of 35

20

TUS Has The Most O&D Traffic with No East Coast Nonstops-

Not Even Taking Leakage Into Account

The Tucson Catchment Area’s Top Unserved O&D True Passenger Markets

12 Months Ending June 2025

Source: Airline Data, Inc.

East Coast Focus

21 of 35

Source: Airline Data, Inc.

Some Existing Routes are Still Underserved

TUS Average Load Factor by Market and Carrier

Twelve Months Ending October 2025

Existing Route Growth Focus

22 of 35

Airlines at TUS

,

23 of 35

Economic Development

24 of 35

AERONAUTICAL DEVELOPMENT

  • Airfield Safety Enhancement Project
  • Redesigning the Valencia GA Ramp
    • More/Larger aircraft
  • Evaluating infrastructure
    • CBIS
    • GSE Chargers
    • RAC Improvements
    • Parking Expansion

25 of 35

AERONAUTICAL DEVELOPMENT

“Project Penny”

  • SkyWest Airlines MRO
  • 100K SF Hangar
  • 15-acre greenfield development

26 of 35

AERONAUTICAL DEVELOPMENT

“Project ETF”

  • Pratt & Whitney Engine Test Facility
  • 5-acre greenfield development

27 of 35

AERONAUTICAL DEVELOPMENT

“Project Hank”

  • JMK Investments
  • 5-acre greenfield development
  • 12K SF general aviation Hangar

“Project Million Air”

  • Tucson Aeroplex (dba Million Air)
  • 5-acre greenfield development
  • 12K SF general aviation Hangar
  • Restaurant Installation
  • Rooftop Solar Panel Installation
  • 10-acre Ramp Expansion

“Project All-In”

  • Hangar Consortium
  • Multiple Hangars
  • Unknown acreage greenfield development

28 of 35

AERONAUTICAL DEVELOPMENT

Facility Lease

  • 1920 East Aero Park Boulevard
  • 32K SF MRO Hangar
  • Multiple Interested Parties

29 of 35

Non-Aeronautical Development

,

  • Zoning to accommodate commercial growth
  • Millions invested in road and utility infrastructure
  • Synergistic relationships - a force multiplier
  • Smart / Responsible development
  • 2000 Acres of land encumbered

30 of 35

Non-Aeronautical Development

,

“Project Starting Gate”

  • Schnitzer Properties/TAA JV
  • 96-acre greenfield development

31 of 35

Non-Aeronautical Development

,

Project Strata / Project Jupiter

  • Battery Energy Storage
  • Strata 25-acre greenfield development
  • Jupiter 40-acre greenfield development

32 of 35

Non-Aeronautical Development

,

“Project Lasso”

  • AES Solar Company (GIP, EQT consortium)
  • 100MW PV Array / 50MW BESS
  • 1300-acre greenfield development

33 of 35

Non-Aeronautical Development

,

“Project Farm”

  • Construction Equipment company
  • 560-acre greenfield development

34 of 35

Non-Aeronautical Development

,

Raytheon Expansion

  • 37-acre greenfield development

35 of 35

Thank You!