On A Higher Plane – PHL 2022 Annual Report : simplebooklet.com

A representation of the heart Philadelphians proudly embody, Philadelphia International Airport (PHL) elevates all who walk its halls. With live music, diverse artwork, and accessibility to tourist sites, business centers, and cultural hubs, PHL serves more than 25 million passengers annually with 22 passenger airlines and an average of 323 daily departures to 119 nonstop destinations.As a large hub airport, PHL is the only major airport in the nation’s seventh-largest metropolitan area and is located seven miles from downtown Philadelphia. The airport is self-sustaining and uses no local tax dollars, along with being one of the largest economic engines in the region, generating $16.8 billion pre-pandemic for the economy and supporting 106,800 full-time jobs annually. Along with PHL, Northeast Philadelphia Airport (PNE) is Pennsylvania’s fourth-busiest airport, providing “on-call” U.S. Immigration and Customs and United States Department of Agriculture services. PNE averages 160 based aircraft plus a variety of services to private and corporate-owned aircraft through Atlantic Aviation and North Philadelphia Jet Center (NORPAC).Sometimes in the open but often behind the scenes, we work to ensure that our vision and values lift up all who come here.MORE THAN JUST TAKEOFFS AND LANDINGS

Page 4

On behalf of the City of Philadelphia — Department of Aviation, I am pleased to share my first annual report since assuming the role of CEO in December 2022. I have worked across many roles in airports around the country and have seen firsthand that airports often provide the first and last impression of the city in which they serve. In the short time that I have been privileged to direct the planning, development, and administration of both the Philadelphia International Airport (PHL) and the Northeast Philadelphia Airport (PNE), I have been particularly impressed by the collective spirit of employees, business partners, and stakeholders to serve passengers with distinction and connect Philadelphia to the world. The airports’ renewed focus on customer service and satisfaction, while creating a more supportive ecosystem for employees, has been a critical component of this strategy. In the year ahead — one that will surely be marked by continued recovery in the global aviation industry — we will focus on ensuring the entire Department of Aviation team has the resources they need for the continued growth and recovery that will set PHL and PNE on a higher plane. I want not only to make travelers more fond of our airports but hear that their time in our facilities is among the best travel experiences they’ve ever had. These goals are lofty but achievable due to the solid foundation already established here at the Department of Aviation. There is a deep desire among our employees and business partners to provide an uplifting customer experience, and we will continue to develop more customer-centric initiatives that will cement the airports as places our City and its residents can take pride in. Our $1.3 billion capital development program will enhance the overall terminal experience over the next several years and allow us to compete with other markets while fulfilling our potential as a premier global gateway. And, thanks to an amendment to the Philadelphia Home Rule Charter in November 2022, the airports now operate as a standalone Department of Aviation, helping to streamline our processes and increase efficiencies in decision-making. Together, I am confident that everything we do here at the Department of Aviation is converging to create a better experience for our passengers and our employees in the years to come. Thank you for entrusting me in pursuit of this mission.Atif Saeed Chief Executive OfficerMESSAGE FROM THE CEO

Page 5

ON A HIGHER PLANE | 32022 was a year of ongoing recovery for Philadelphia, marked by our continued work to tackle the City’s most complex challenges in the aftermath of the pandemic. It also ushered in a new era for PHL and PNE, as the City welcomed new leadership, said goodbye to old friends, and created a standalone Department of Aviation to more efficiently handle the demands of modern airport operations. As we seek to drive inclusive growth and economic opportunity throughout the City and region, we must not overlook the critical role of our airports in helping to build a thriving economy. In fact, PHL and PNE are key regional assets that combine to contribute $16.8 billion to the economy and support 106,800 full-time jobs annually. To succeed in the future, we must ensure our airports are in the best position to adapt and grow. The solid foundation established by past leaders and the years of industry experience that the Department of Aviation’s new CEO Atif Saeed brings to the table will be invaluable in the year ahead as the airport continues to cement its status as a world-class global gateway of choice for the City and the surrounding region. I look forward to supporting all of the great things on the horizon for PHL and PNE in the year ahead. Mayor Jim Kenney City of Philadelphia MESSAGE FROM THE MAYOR

Page 6

PHLPNE LEADERSHIPPHL FUNDING DETAILSPhiladelphia International Airport (PHL) is owned and operated by the City of Philadelphia. The airport is a self-sustaining entity that operates without the use of local tax dollars. The airport operates as an enterprise fund of the City of Philadelphia. Enterprise funds are established by governmental units to account for services that are provided to the general public on a user-charge basis and are operated in a similar manner to business-type activities. The Aviation Fund is self-supporting, using aircraft landing fees, terminal building rentals, concessions revenue, and other facility charges to fund annual expenses. The airport’s capital program is funded by airport revenue bonds issued by the City, federal, and state grants; Passenger Facility Charges (PFCs); and operating revenues.Atif Saeed Chief Executive OfficerTracy Borda Chief Financial OfficerKeith Brune Chief Operating OfficerAllen Mehta Chief Information OfficerJoseph Messina Senior AdvisorDamian Oravez Chief Information Security OfficerJames Tyrrell Chief Revenue OfficerDelicsha Wilds Chief Administrative Officer

Page 7

ON A HIGHER PLANE | 5OUR MISSIONProudly connecng Philadelphia with the worldOUR VISIONTo be a world-class global gateway of choiceOUR VALUES: PRIDEPEOPLE FIRST Our employees, stakeholders, and passengersRESPECT To our customers and our environment INTEGRITY We hold ourselves responsible for what we do, say, and thinkDIVERSITY Purposefully inclusive, and accepng of all EXCELLENCE We hold ourselves to the highest of standards of service, innovaon, and eciencyWHAT WE STAND FOR

Page 8

Page 9

Page 10

Wagging Tails BrigadeA SHARED PASSIONOne of Guest Experience's (GX) most notable recent initiatives is People of PHL, an airport-wide “people-first” culture change that will transform the airport’s customer service ecosystem. Internal teams who assist guests were realigned under GX, enabling the department to provide cohesive customer-centric information services across several platforms and locations throughout the airport. People of PHL also includes several new programs: the PHL Volunteer Navigators, who provide in-person customer service at Information Counters from 8am-8pm daily; PHL Navigators, a supplement to the volunteers, who provide real-time 24/7 information virtually and post-security; and the Airport Employee Recognition Program, which honors peer- and guest-nominated staff from the Department of Aviation and PHL stakeholder organizations.Airport Employee Recognion Program

Page 11

ON A HIGHER PLANE | 9The Colored Girls MuseumPHL’S EXHIBITIONS PROGRAMSince 1998, PHL’s Exhibitions Program has introduced millions of guests to Philadelphia’s unique culture by showcasing the work of hundreds of diverse artists and art institutions from across the airport’s service region. In 2022, PHL’s nationally recognized, award-winning visual arts initiative included a celebration of the 50th anniversary of Philadelphia International Records; a glimpse of Germantown’s The Colored Girls Museum; and works created with recycled materials, such as shopping carts. The Exhibitions Program also launched its first interactive Art Puzzle Challenge, where guests solve puzzles using QR codes at exhibits in Terminals B and C.

Page 12

PHL FOOD & SHOPS SET AN ACDBE RECORDLed by CEO Clarence LeJeune and Executive Vice President Mel Hannah, certified Airport Concessions Disadvantaged Business Enterprise (ACDBE) LeJeune and Associates brings over 50 years of experience in airports and business to PHL. In addition to managing the airport concessions program on-site, the company oversees retail management, merchant relations, ACDBE compliance, customer service, marketing, compliance with street pricing, minimum wage, benefit standards, common area maintenance, delivery, and coordination of tenant design. Clarence and Mel will celebrate 25 years at PHL in 2023.One of the airport’s original ACDBE JV Partners that started with The RELAY News and Gift concept in 1995, PLEASANT NEWS is currently a Joint Venture Partner with Paradies and DFASS at 16 locations in PHL. Pleasant News has 29 locations overall, with three 100% wholly owned operations outside of PHL.In 2022, MarketPlace PHL and LeJeune and Associates celebrated the participation of over 20 ACDBE businesses at PHL.LIFTING UP SMALL & LOCAL

Page 13

that were owned wholly by or in partnership with ACDBEsfor food, beverage, and retail earned by over 20 ACDBE vendorsOF TOTAL SALESIN SALESearned by ACDBE vendorsVENDORS IN 2022ACDBE$MSLA WORLDWIDE opened two unique shops at PHL in 2022. Lily Palmer Flowers & Gifts offers signature floral designs and gifts for travelers. 1920 Merch Co. is the first airport shop of its kind, selling memorabilia that celebrates voting rights and the women’s suffrage movement.STROTHER ENTERPRISES INC., a Philadelphia-based, minority/veteran-owned business operates Subway franchises in the B/C food court and Terminal E and Win Kitchen in Terminal F. The company reached $2.8 million in sales last year.12CONCESSIONS OPENED AT PHLON A HIGHER PLANE | 11

Page 14

DIVERSITY BUSINESS ENTERPRISEOFFICE OF BUSINESS DIVERSITY (OBD) SUPPORTS DIVERSE CONTRACTING OPPORTUNITIES The airports’ OBD has responsibility for several federal diversity contracting programs: • Federal Disadvantaged Business Enterprise (DBE) Program• Federal Airport Concessions Disadvantaged Business Enterprise (ACDBE) Program• Federal DBE and ACDBE Certification Program• Small Business Enterprise (SBE) ProgramAdditionally, it coordinates with the City of Philadelphia’s Office of Economic Opportunity (OEO) to support diverse contracting and implements the Local Business Purchasing Initiative (LBPI) for locally funded projects. DIVERSE BUSINESS PARTICIPATION GOALS & RESULTSPROGRAM FY 22 GOAL FY 22 ACHIEVED PHL OEO 30% 31.69% PHL Federal FY DBE 17.93% 16.6% PHL Federal FY ACDBE 21.3% 36.48% PHL ACDBE MarketPlace Storefront Concessions 35% 45% Throughout the year, OBD hosts or participates in activities focused on building capacity, expanding awareness of opportunities, and networking for small, diverse businesses. EVENT HIGHLIGHTS In March, PHL held an outreach session promoting an upcoming construction opportunity for the renovation of over 30 restroom facilities in the airport, fostering relationships between potential prime contractors and small, diverse firms. In September, the 10th Annual Business Opportunity Forum brought more than 300 representatives of businesses in the Philadelphia area together virtually to understand the dynamics of doing business at PHL, learn about opportunities, and network. In December, a small order purchase workshop and networking event was targeted to small businesses on upcoming small order purchases in the areas of civil engineering, Geographical Information System (GIS), and tree inventory services. The event showcased some of the airport’s upcoming opportunities sized to be more attractive to small firms and businesses that had not previously worked at PHL.

Page 15

ON A HIGHER PLANE | 13DIVERSITY, EQUITY, AND INCLUSION DEIREVEREND DR. LEON H. SULLIVAN INTERNATIONAL ARRIVALS HALLIn October, PHL and the City of Philadelphia marked the 100th birthday of civil rights and social jusce leader Reverend Dr. Leon H. Sullivan by renaming the Internaonal Arrivals Hall in his honor. At the ceremony, a permanent exhibit honoring Reverend Sullivan’s legacy was unveiled.THE BRIDGE PROGRAMCombining formal learning with on-the-job training for current employees seeking career changes, advancements, and enhancements, the Bridge Program oers opportunies toward advancement in civil service careers. THE DEPARTMENT’S RACIAL EQUITY ADVISORY COUNCIL (REAC)Serving as a catalyst for change for topics related to advancing racial equity throughout the airport ecosystem, REAC hosts acvies focused on building awareness, idenfying soluons, and fostering a dynamic workplace to ensure safe spaces and equitable opportunies for all employees.DRIVING MEANINGFUL CHANGE AND LASTING IMPACTThe Department of Aviaon champions diversity, equity, and inclusion (DEI) with a dedicated sta and nancial resources to develop a DEI unit focused on idenfying inequies, advancing a DEI strategy, implemenng lasng change, and holding management accountable. The unit is responsible for ensuring that the airports are compliant with city-wide mandates and serves as the central depository for recording and reporng DEI eorts.The airports envision a workplace where all employees can contribute, grow, and thrive regardless of posion, race, or background.BELONGING UNDERSTANDING IMPACT LEGACY DETERMINATION Creang programs and opportunies that allow employees to be seen, accepted, and included.Providing opportunies and forums for feedback that encourage growth.Creang beer ways of working, collaborang, growing, and transforming mindsets.Revision of policies, pracces, and programs to eliminate systemic racism.Collecon of meaningful data to measure success and inform decisions.

Page 16

AWARDSAIRPORT INDUSTRY AWARDSAirports Going Green (AGG) Outstanding Sustainability Infrastructure Development Award for PHL Apron ProjectShaw Contract Certificate of Appreciation Sustainability and Carpet Recycling EffortsWomen’s Transportation Seminar (WTS) Philadelphia Chapter's Diversity Award Commitment to Advancing Diversity in Leadership Roles for WomenUber Innovation Award Facilitating Consistent Shared Ride ServicesAirports Council International – North America (ACI-NA) Voice of the Customer Commitment to Understanding Guests’ Needs by Collecting ASQ Survey DataAirport Carbon Accreditation (ACA) Program PHL Achieved Level 2 ReductionAirport Carbon Accreditation (ACA) Program PNE Achieved Level 1 MappingStevie® Awards Silver Recognition Philadelphia International Airport – Department of Aviation for Achievement in Diversity & InclusionEMPLOYEE RECOGNITION AWARDSPhiladelphia Business Journal CFO of the Year Honoree Tracy Borda, Chief Financial OfficerAirports Council International – North America (ACI-NA) Large Airport Finance Professional of the Year Tracy Borda, Chief Financial OfficerWTS Board of Directors Appointed President of Philadelphia Chapter Api Appulingam, Deputy Director of Aviation – Capital DevelopmentAirport Business Top 40 Under 40 Wallace DuBois, Airside Operations SuperintendentStevie Awards Bronze Recognition for Female Executive of the Year (Government or Non-Profit – 11 to 2,500 Employees) Delicsha Wilds, Chief Administrative OfficerNortheast Chapter of the American Association of Airport Executives (NEC/AAAE) Diversity, Equity, and Inclusion AwardNortheast Chapter of the American Association of Airport Executives (NEC/AAAE) Honorable Mention, Airfield Project of the Year: Terminal D/E Apron Repairs

Page 17

GRANTSCommitted to continuously improving the airport and its surrounding community, thank you to those who supported and invested in the airport’s infrastructure in 2022.$MRESTROOM RENOVATION PROGRAM AIRPORT TERMINAL PROGRAM$MTAXIWAY J RECONSTRUCTION PHLFEDERAL$.MINSTALL PCAIR & GPUFEDERAL$.MREHABILITATE TAXIWAY L PNEFEDERAL$MSEPTA PLATFORM RENOVATIONSSTATE – Redevelopment Assistance Capital Program$MREHABILITATE TAXIWAY Y PHLCONGRESSIONALLY DIRECTED SPENDING – Senator Casey$KTAXIWAY J RECONSTRUCTION PHLSTATE – PennDOT$.MBAGGAGE TUG TUNNELSTATE – PA Dept. of Community and Economic Development

Page 18

COMMUNITY RELATIONSThe Community Relations team is vital to keep open lines of communication and transparency between PHL, PNE, and members of the community at large. Our team views our outreach efforts as an opportunity to connect with our neighbors about happenings at the airports. The goal is to strengthen relationships with surrounding communities through communication, education, collaboration, and inclusion. Our team is available to meet the community where they are or to have interested parties visit PHL and PNE to explore and learn about behind-the-scenes activities.In 2022, we worked diligently to return to normal operations following the pandemic. The recovery effort included reconnecting with our partners and constituents to reinforce our commitment to the neighborhood we share.CONNECTING WITH OUR NEIGHBORSTHE AIRPORTS’ OUTREACH EFFORTS• Tours of the airports and ground facilities for schools and organizations within surrounding communities• Opportunities to meet pivotal team members, including the Department of Aviation management team, Fire and Rescue team, and flight tower personnel• Fundraise for charities through sponsoring events, such as the annual Run the Runway 5K, and donations to organizations• Town hall meetings to provide status updates to community partners on airport-related projects, programs, events, and career/business opportunities• Partnerships with local schools and nonprofit organizations• Facilitate opportunities for PHL and PNE staff to volunteer within the surrounding communities16 | ON A HIGHER PLANE

Page 19

Page 20

Page 21

Page 22

Atlanta, GeorgiaNONSTOP DESTINATIONSALB Albany, NYABE* Allentown, PAAOO Altoona, PAAVL Asheville/Hendersonville, NCATL Atlanta, GAACY* Atlantic City, NJAUS Austin, TXBGR Bangor, MEBHM Birmingham, ALBOS Boston, MABUF Buffalo, NYBTV Burlington, VTCHS Charleston, SCCLT Charlotte – Douglas, NCMDW Chicago – Midway, ILORD Chicago – O’Hare, ILCVG Cincinnati, OH/Covington, KYCLE Cleveland, OHCAE Columbia, SCCMH Columbus, OHDFW Dallas/Fort Worth, TXDAL Dallas – Love, TXDAY Dayton, OHDAB Daytona Beach, FLDEN Denver, COVPS Destin/Ft. Walton Beach, FLDTW Detroit, MIFLL Fort Lauderdale, FLRSW Fort Myers, FLFWA Fort Wayne, INGRR Grand Rapids, MIGSO Greensboro, NCGSP Greenville/Spartanburg, SCMDT Harrisburg, PABDL Hartford, CTHHH Hilton Head Island, SCIAH Houston – Intercontinental, TXIND Indianapolis, INJAX Jacksonville, FLMCI Kansas City, MOEYW Key West, FLTYS Knoxville, TNLNS* Lancaster, PALAS Las Vegas, NVLEX Lexington, KYLAX Los Angeles, CASDF Louisville, KYMSN Madison, WIMHT Manchester, NHMVY Martha’s Vineyard, MAMEM Memphis, TNMIA Miami, FLMKE Milwaukee, WIMSP Minneapolis/Saint Paul, MNMYR Myrtle Beach, SCACK Nantucket, MABNA Nashville, TNMSY New Orleans, LAEWR New York/Newark, NJORF Norfolk, VAOAK Oakland, CAOGS Ogdensburg, NYMCO Orlando, FLPNS Pensacola, FLPHX Phoenix, AZPIT Pittsburgh, PAPBG Plattsburgh, NYPWM Portland, MEPVD Providence, RIRDU Raleigh/Durham, NCRIC Richmond, VAROA Roanoke, VAROC Rochester, NYSBY Salisbury/Ocean City, MDSLC Salt Lake City, UTSAN San Diego, CASFO San Francisco, CASJU San Juan, PRSRQ Sarasota/Bradenton, FLSAV Savannah, GASEA Seattle, WASTL St. Louis, MOSTT St. Thomas Island, VISCE State College, PASYR Syracuse, NYTPA Tampa, FLTVC Traverse City, MIDCA Washington-National, DCART Watertown, NYPBI West Palm Beach, FLILM Wilmington, NCDOMESTIC* Destinations served by American Airlines Landline

Page 23

ON A HIGHER PLANE | 21CaribbeanAUA Aruba, ArubaBDA Bermuda, BermudaCUN Cancún, MexicoCZM Cozumel, MexicoGCM Grand Cayman, Cayman IslandsMBJ Montego Bay, JamaicaNAS Nassau, BahamasPLS Providenciales, Turks & Caicos IslandsPUJ Punta Cana, Dominican RepublicUVF St. Lucia, Saint LuciaSXM St. Maarten, Sint MaartenEuropeAMS Amsterdam, NetherlandsATH Athens, GreeceBCN Barcelona, SpainDUB Dublin, IrelandFRA Frankfurt, GermanyLIS Lisbon, PortugalLHR London-Heathrow, United KingdomMAD Madrid, SpainCDG Paris – De Gaulle, FranceFCO Rome – Da Vinci, ItalyVCE Venice, ItalyZRH Zurich, SwitzerlandCanadaYHZ Halifax, CanadaYUL Montréal – PET, CanadaYQB Quebec, CanadaYYZ Toronto, CanadaMiddle EastDOH Doha, QatarINTERNATIONALContour AOO Altoona, PAOGS Ogdensburg, NYPBG Plattsburgh, NYFrontierSAT† San Antonio, TXSpiritOAK Oakland, CAUnitedEWR New York/Newark, NJAmerican Airlines LandlineABE Allentown, PAACY Atlantic City, NJLNS Lancaster, PANEW DESTINATIONS IN 2022Cancún, Mexico†Not operating in 2023

Page 24

FLYING HIGHERAIR SERVICE DEVELOPMENTTransatlantic travel made a big comeback in 2022, with American Airlines serving 11 destinations with 12 daily nonstop flights from PHL, beginning in March. Travel between Philadelphia and destinations such as Lisbon, Portugal; Madrid and Barcelona, Spain, resumed for the first time since 2020. PHL also welcomed Aer Lingus flights for the first time since 2020. Domestically, Contour Airlines joined PHL’s cadre of airline partners, with service to Ogdensburg and Plattsburgh, New York; and Altoona, Pennsylvania. American Airlines launched its Landline service, connecting passengers between PHL, Allentown (ABE), Lancaster (LNS), and Atlantic City (ACY) via bus.22 | ON A HIGHER PLANE

Page 25

Page 26

EXPANDING THE AIR CARGO FACILITY FOOTPRINTPHL continues its work on the Cargo Expansion Strategy announced in 2021 as a part of its partnership with Aviation Facilities Company Management (AFCO). A key initial element of the strategy is AFCO’s development of an air cargo and airport support facility on approximately nine acres of the former PHL economy parking lot. The proposed 70,000-square-foot facility will provide airport businesses with modern and efficient space for their operations and direct access to the airfield. The facility will be located near Terminal E and Runway 17/35.In September, the airport and AFCO announced that they will be partnering with Menzies Aviation as a new cargo ground handler at PHL, along with Kale Logistics Solutions as the technology solution provider for the airport’s cargo community system. AFCO intends to develop a 150,000-square-foot facility for Menzies in support of the company’s growing operations. The proposed facility will capitalize on investments being made to relocate Tinicum Island Road and expand the airport’s cargo ramp area. The new facility will also leverage PHL’s relationship with Kale Logistics Solutions in the development of an air cargo community system.24 | ON A HIGHER PLANE

Page 27

Page 28

CAPITAL DEVELOPMENT GROUP CDGBREAKING GROUND AND FORGING NEW CONNECTIONSPNE TAXIWAY L REBUILDINGIn 2022, the Department of Aviation began designing the long-awaited repairs of the wear and tear on Taxiway L at PNE. Taxiway L serves as the parallel taxiway to main Runway 6-24. The improvements will bring the taxiway up to geometric compliance for a Taxiway Design Group (TDG) 3 through the integration of 20-foot shoulders, contributing to increased capacity at PNE.SEPTA AIRPORT LINE PLATFORM REHABILITATION PROJECT KICKOFFOn September 9, a groundbreaking ceremony was held for the Southeastern Pennsylvania Transportation Authority (SEPTA) Platform Rehabilitation project at PHL’s Terminal D/E Regional Rail platform. Officials from the Department of Aviation, SEPTA, local elected officials, and the Philadelphia Convention & Visitors Bureau gathered to celebrate the start of this important project. The SEPTA Platform Rehabilitation project received three grants from the Commonwealth of Pennsylvania, totaling $1,925,000.

Page 29

PHL OPENS FIRST-EVER BUILT-IN LACTATION SUITE AND ADULT CHANGING ROOMThe newest set of restrooms in Terminal B/C food court include PHL’s first built-in lactation suite. The private room has comfortable seating, a changing table, outlets, USB charging, adjustable lighting, and temperature controls. This suite is a step forward for making PHL a place that is more safe, welcoming, and accessible for mothers. The Restroom Renovations Program has also made strides in accessibility through the inclusion of the airport’s first adult changing room. The standalone restroom provides a large, solid changing area with grab bars for adult passengers who may need assistance with changing. This space goes beyond Americans with Disabilities Act (ADA) compliance, as the project team identified an innovative strategy to improve accessibility and make traveling through PHL a smoother experience for all.THE NEW TERMINAL D/E ENTRYWAYS — ENERGY EFFICIENT AND BEAUTIFULTerminal D/E entryways received a major upgrade in 2022, with the installation of new automatic sliding doors, composite stone panel facade, a state-of-the-art curtain wall system, lighting, fire safety equipment, and flooring. The project is aligned with beautification and energy-saving efforts at PHL and noticeably transforms the exteriors and entrances along Departures Road.HOLDROOM REFRESH PILOT PROJECTThe holdroom at Gate D1 has undergone a major renovation to enhance the passenger experience. Working in collaboration with the Guest Experience team, the project team transformed the space into a brighter, cleaner, and more inviting place for passengers to wait. The renovation included the installation of new seats with charging outlets, high-top tables, newly painted walls and railings, lighting upgrades, and new flooring. The holdroom renovation at Gate D1 sets the standard in passenger experience for holdrooms in Terminals D and E.ON A HIGHER PLANE | 27

Page 30

EMBARKING ON ENVISION PROJECTSThe Department of Aviation is the City of Philadelphia’s first department to begin utilizing the Envision rating system for sustainable infrastructure. So far, 14 runway and taxiway projects are in the process of seeking Envision verification. To facilitate the adoption of the framework, five Department of Aviation staff members earned certifications as Envision specialists, and a sustainable airfield charrette was held to incorporate Envision principles into capital projects. In 2022, the Department of Aviation completed its Sustainability Management Plan to integrate sustainability into airport operations and development. The Department of Aviation staff, MarketPlace, American Airlines, and city agencies all contributed to the plan, which identifies ambitious sustainability goals and initiatives and leadership for implementation. PURSUING SUSTAINABLE PRACTICESAIRPORT CARBON ACCREDITATION FOR PHL AND PNEAirport Carbon Accreditation (ACA) is the global carbon management certification program for airports. Level 2 accreditation was awarded to PHL in recognition of the airport’s work in mapping carbon emissions and demonstrating emissions reductions from 2018 through 2021. PHL is one of only ten Level 2 Airport Carbon Accredited airports in North America. PNE also entered the program and achieved Level 1, Mapping. PHL and PNE are the first two airports in Pennsylvania to receive ACA accreditation.RECYCLING RATE REACHES HISTORIC HIGH OF 25% The Department of Aviation began working with a new recycling hauler, J.P. Mascaro & Sons. The Department of Aviation’s diversion rate had previously been as high of 23% and then plummeted to only 1% in 2019. With the help of our new recycling hauler, the Department of Aviation has achieved a historically high diversion rate of 25% in 2022 — higher than any year since tracking began in 2009.28 | ON A HIGHER PLANE

Page 31

Page 32

Fiscal Year 2022Fiscal Year 2021Dollar Increase (Decrease)Percentage Increase (Decrease)Current assets $ 505,936 $ 330,849 $ 175,087 52.9%Non-current assets 789,048 642,915 146,134 22.7%Capital assets, net 2,285,675 2,192,137 93,538 4.3%Total assets 3,580,660 3,165,901 414,759 13.1%Deferred oulows 27,027 18,275 8,751 47.9%Current liabilies 337,157 394,148 (56,992) (14.5)%Non-current liabilies 1,987,976 1,689,336 298,640 17.7%Total liabilies 2,325,133 2,083,485 241,648 11.6%Deferred inows 116,755 36,677 80,079 218.3%Net posion:Net investment in capital assets 895,169 865,501 29,668 3.4%Restricted for capital projects 93,942 61,317 32,626 53.2%Restricted for debt service 168,718 160,221 8,497 5.3%Unrestricted 7,968 (23,025) 30,994 134.6%Total net posion $ 1,165,798 $ 1,064,013 $ 101,785 9.6%Fiscal Year 2022Fiscal Year 2021Dollar Increase (Decrease)Percentage Increase (Decrease)Operang revenues $ 321,203 $ 288,424 $ 32,779 11.4%Less: Operang expenses (346,082) (327,935) (18,147) 5.5%Operang gain (loss) (24,879) (39,511) 14,632 (37.0)%Non-operang revenue, net 55,159 56,482 (1,325) (2.3)Income before capital contribuons 30,280 16,972 13,307 78.4%Capital contribuons 71,505 29,318 42,187 143.9%Changes in net posion 101,785 46,290 55,495 119.9%Net posion beginning of year 1,064,013 1,017,724 46,290 4.5%Prior period adjustments – – – –Net posion end of year $ 1,165,798 $ 1,064,013 $ 101,785 9.6%FINANCIAL SUMMARYCITY OF PHILADELPHIA AVIATION FUND STATEMENTS OF NET POSITION(Amounts expressed in thousands)CITY OF PHILADELPHIA  AVIATION FUND STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION (Amounts expressed in thousands)

Page 33

ON A HIGHER PLANE | 31Fiscal Year 2022Fiscal Year 2021Dollar Increase (Decrease)Percentage Increase (Decrease)Operang revenuesRents $ 109,403 $ 129,802 $ (20,399) (15.7)%Landing fees 64,622 76,702 (12,080) (15.7)%Passenger fees 21,444 10,806 10,638 98.4%Total airline revenues 195,469 217,310 (21,841) (10.1)%Parking 27,317 724 26,594 3674.1%Food/beverage/retail 20,297 8,818 11,479 130.2%Rental cars 21,798 12,738 9,060 71.1%Ground transportaon 9,501 3,776 5,725 151.6%Other operang 46,819 45,057 1,763 3.9%Total non-airline revenues 125,734 71,114 54,620 76.8%Total operang revenue 321,203 288,424 32,779 11.4%Non-operang revenuesPassenger facility charges 48,553 30,033 18,522 61.7% Customer facility charges 12,231 10,561 1,669 15.8%Interest income (8,753) 1,591 (10,344) (650.2)%Lease interest revenue 2,599 - 2,599 0.0%Operang grants 54,629 64,398 (9,768) (15.2)%Other non-operang – 224 (224) (100.0)%Total non-operang revenue 109,259 106,806 2,453 2.3%Total revenues $ 430,462 $ 395,230 $ 35,232 8.9%REVENUES BY SOURCE(Amounts expressed in thousands)OPERATING REVENUEFY 2022 - $321.2M

Page 34

FINANCIAL SUMMARY CONT D EXPENSES BY SOURCE OPERATING REVENUE Amounts expressed in thousands Amounts expressed in thousands Fiscal Year 2022 Fiscal Year 2021 Dollar Increase Decrease Percentage Increase Decrease Personnel services 76 876 74 137 2 739 3 7 Employee benefits 38 727 49 041 10 314 21 0 105 600 89 510 16 088 18 0 Materials supplies equipment 5 772 3 345 2 426 72 5 Other operating 4 890 5 363 473 8 8 114 217 106 538 7 678 7 2 346 082 327 935 18 146 5 5 Debt service interest 53 300 50 324 2 976 5 9 Other non operating 859 859 54 160 50 324 3 835 7 6 400 241 378 260 21 981 5 8 Operating expenses Purchase of services Depreciation Total operating expenses Airline 250 000 200 000 150 000 100 000 Non operating expenses Total non operating expenses Total expenses 32 ON A HIGHER PLANE 50 000 0 Non airline

On A Higher Plane – PHL 2022 Annual Report

Page 1

Page 2

Page 3