b'Capital Region Airport Commission Managements Discussion and Analysis (Continued) June 30, 2025 and 2024 The Capital Region Airport Commissions (Commission) Managements Discussion and Analysis (MD&A) section provides a review of the key financial events and items impacting Richmond International Airports (the Airport) operations and financial statements.This discussion and analysis provides an overall view of how the Airport deals with both current and future conditions. The preparation of this report was performed by the Commissions management team and we recommendthattheManagementDiscussionandAnalysisbereadinconjunctionwiththe Commissionsfinancialstatementsandthesupplementalschedulesincludedinthefinancial report.Following this MD&A are the basic financial statements of the Commission together with the notes thereto, which are essential to a full understanding of the data contained in the financial statements. TheCommissionsfinancialstatementsarepreparedinconformitywithgenerallyaccepted accounting principles in the United States of America (GAAP) applicable to governmental units, as prescribed by the Governmental Accounting Standards Board (the GASB).The financial statements are prepared on the accrual basis, recognizing revenue when earned and expenses when incurred, and include all the business activities of the Airport.Assets are designated as restricted and unrestricted in accordance with indentures and other agreements.See notes to financial statements for a summary of significant accounting policies. The Commissions operations are self-supported using aircraft apron fees, landing fees, fees from the terminal and other rental as well as revenues from concession and non-aviation revenues such as parking and food establishments to fund operating expenses.The Commission is not taxpayer funded.Thecapitalprogramisfundedbybonds,federalandstategrants,customerand passenger facility charges and net remaining revenue after operating and debt service costs. The Commissions fiscal year is from July 1 to June 30.The following MD&A of the Commissions financialperformanceisfortheyearsendedJune30,2025,and2024.Informationforthe preceding fiscal year ended June 30, 2023, has been included to provide a better insight into the overall financial performance of the Commission.All dollar amounts are provided in thousands. COMMISSION ACTIVITIES & HIGHLIGHTS The Airport experienced a slight decrease in passenger traffic in fiscal year 2025 when compared to fiscal year 2024. The number of enplaned passengers was (0.7%) lower than in fiscal year 2024. The decrease from fiscal year 2024 is primarily driven by consumer uncertainty and international visitor loss due to market adjustments to new federal trade policies. Passenger airline landed weights decreased by (1.0%) in fiscal year 2025 from the prior year; cargo airline landed weight increased by 5.4% from the prior year. The decrease in passenger landed weights is mainly attributed to a modest remix of aircraft gauges serving the airport. FedEx, UPS, and Air Transport International continued to represent most of the cargo landed weights in fiscal year 2025.Aircraft operations represent landings and takeoffs for air carriers (passenger and cargo), air taxi and commuter, general aviation, and military operations. This activity increased 1.5% over the prior fiscal year primarily attributable to an increase in in cargo activity and gauge mix optimization by passenger carriers. 4'