b'ECONOMIC CONDITIONS The Airport is conveniently located approximately seven miles from the Citys central business district, providing air service to 4.89 million passengers this fiscal year. The Airport is geographically located within 750 miles of approximately 60% of the nations population. The 2025 FAA terminal area forecast (TAF) calls for RIC enplanements growth over the next ten years to increase by over 21%. The FAA expects U.S. carriers to remain profitable over the next few years as rising demanddespite higher faresmore than offsets higher costs for labor and fuel. As carriers continue to moderate capacity growth, pay down debt, innovate their products and maintain pricing power, consistent profitability should emerge.Over the long term, they see a competitive and profitable aviation industry characterized by increasing demand for air travel andairfaresgrowingmoreslowlythanoverallinflation,reflectinggrowingU.S.andglobal economies. https://www.faa.gov/data_research/aviation/aerospace_forecasts In FY25, the Airport experienced aslightdecrease(-0.6%)inpassengertraffic,largelydueto consumer and business uncertainly particularly during the period of February 2025 through May 2025, a decrease in international traveler volume (a portion of RICs customer base is travelers using the airport as a domestic portion of an international journey) and reduced capacity in some price-sensitive leisure markets due to service reductions by Spirit as itexited bankruptcy and Allegiantasitretreatedfromexpandedcompetitioninsomemarkets.Trafficbegantosee stabilization and growth at the end of the fiscal year with multiple factors contributing:new routes included two from Breeze, Sarasota/Bradenton (SRQseasonal) and NewHaven (HVN) plus RICs first international route in more than a decade: Hamilton, Bermuda(BDA), with BermudAir. As FY25 wrapped up, the airport received FY26 service notifications from Breeze for PalmBeach(PBI,startinginSeptember)andfromnewentrantFrontierasitannouncedRichmond-Atlanta and Richmond-Denver service, both to begin in October. For the fifth consecutive year, the Capital Region Airport Commission earned Great Place to Work Certification. This prestigious award is based entirely on what current employees sayabout their experience working at Capital Region Airport Commission. Great Place toWork is the global authority on workplace culture, employee experience, and leadershipbehaviors proven to deliver market-leading revenue, employee retention and increasedinnovation. In 2025, 85 percent of Commission employees said Richmond InternationalAirport (RIC) was a great place to work. Also, for the sixth consecutive year, the Airport earned GBAC STAR Facility accreditationfrom the Global Biorisk Advisory Council. GBAC STAR is an important indicator of a facilitysthoroughness with cleaning, disinfection, and prevention, demonstrating a commitmentto maintaining a safe and healthy environment. In 2021, RIC was the first airport in Virginiato earn GBAC STAR accreditation and one of the first 30 in the U.S. to be accredited. The Small Community Air Service Development Grant (SCASDP) awarded to the airport bythe U.S. Department of Transportation support service between Richmond and Seattleremains available and the Commission has been actively engaging airlines that couldoffer this route. Additional community accolades may be found on the websites of Chamber RVA, theGreater Richmond Partnership, and Richmond Region Tourism, among others.viii'