Taking You Places - PHL/PNE 2023 Annual Report : simplebooklet.com

2CONTENTSWHO WE ARELeadership Message .................................................................... 3PHL/PNE Leadership .................................................................... 4Passenger Volume ....................................................................... 5Nonstop Destinations .................................................................... 6Airline Partners .......................................................................... 7Air Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Investing in the Future ................................................................... 10The Future of Cargo ..................................................................... 13Meet PNE .............................................................................. 14PHL & PNE Grants ...................................................................... 16Preparing for 2026 ...................................................................... 17Preparing the Future Workforce ......................................................... 18Awards & Accolades .................................................................... 19Guest Experiences ..................................................................... 20Sustainability ...........................................................................22PHL & PNE in the Community ...........................................................23Financial Summary .................................................................... 24This annual report is dedicated to the memory of1973–2023PPD Airport DivisionSergeant Richard Mendez*Pre-pandemicPhiladelphia International Airport (PHL), the only major airport in the nation’s seventh-largest metropolitan area, is a large hub airport serving more than 28 million passengers annually with 27 airlines and over 300 daily departures to 120 nonstop destinations. Located seven miles from downtown Philadelphia, the airport is easily accessible and convenient to many tourist sites, business centers and cultural hubs. The airport is self-sustaining and uses no local tax dollars. PHL is one of the largest economic engines in the region, generating $16.8 billion to the economy and accounting for 106,000 full-time jobs annually.*Northeast Philadelphia Airport (PNE) is Pennsylvania’s busiest general aviation airport, providing “on-call” U.S. Immigration and Customs and United States Department of Agriculture services to corporate domestic and international travel. Situated on 1,150 acres in the northeast part of Philadelphia, PNE averages 140 based aircraft, dominated by single-engine and multi-engine aircraft, jets and helicopters. Its fixed-based operator, Atlantic Aviation, offers a variety of services to private and corporate-owned aircraft.

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2023 PHL/PNE ANNUAL REPORT2023 was a year of acceleration for the City of Philadelphia Department of Aviation, which operates PHL and PNE. Air service continued to climb back toward pre-pandemic levels with the restart of numerous domestic and international routes. Accelerated recovery will continue in the year ahead, as we welcome four new international destinations in 2024. These new routes will result in increased passenger traffic as well, returning our operations to monthly 2019 levels by late 2025.With all eyes on Philadelphia in 2026 for three monumental events — the celebration of America’s 250th anniversary, the MLB All-Star Game and the FIFA World Cup — PHL will be the front door to the world. To that end, we have been focused on enhancing our entire airport system, ensuring that it shines for all to see. A large part of that is When I took office in January 2024, I pledged to join with our community to make Philadelphia the safest, cleanest, and greenest big city in the nation, with economic opportunity for all. That spirit is evident in the terminals, and on the runways of PHL and PNE airports that serve the nation’s seveth-largest metropolitan area. The Department of Aviation is led by CEO Atif Saeed, an experienced industry leader, who arrived in Philadelphia a little over a year ago with a three-year goal to prepare PHL — and our city — to be the “front door to the world” in 2026. Building on the success of his predecessors and with support from our legislative delegation, Atif fostering a workplace culture of collaboration and positive momentum with everyone coming together to provide an outstanding guest experience at every step of the passenger journey. Updates to the aviation department’s leadership in our commercial division, cybersecurity programs and performance management, which began in late 2023 and ran to earlier this year (2024), will cement our ability to implement best practices and optimal performance. In February 2023, the airport received $30 million from the FAA’s Airport Terminal Program. Half of the funding will be used for our Terminal Energy Optimization Program, which began in the summer, and the other half will go toward the airport’s ongoing restroom renovation program.Further positioning PHL for success is the $1.2 billion air cargo expansion that will nearly triple our air cargo facility and his team have worked diligently to accelerate recovery — working with airlines to bring back old routes, attracting service to new destinations, increasing state and federal funding and improving the customer experience throughout the airport system. By all accounts, passenger volume continues to rise toward pre-pandemic levels, contributing to the overall economic success of our city. As part of the city’s new “PHL Open for Business” initiative, focused on growing the local economy, the Department of Aviation will undoubtedly play a large role in fostering a welcoming environment for businesses large and small that are looking to footprint and increase its capabilities and offerings to be on par with the nation’s largest cargo operations.PHL is also embarking on a Master Plan Update, a strategic framework that will lay out airport improvements and enhancements designed to exceed passenger expectations and operational requirements through 2040.I am proud of our many accomplishments in 2023. Keeping staff, passengers, stakeholders and the region at the forefront has allowed us to chart a course for the future, solidifying our commitment to our mission of proudly connecting Philadelphia with the world. Atif Saeed Chief Executive Officereither relocate to the Philadelphia area or do more business in the region. And, the airport’s air cargo expansion and other infrastructure projects will go a long way toward creating new jobs and boosting the region’s economy. There is always more work to be done — but we are off to a great start. Together with the Department of Aviation, we are one Philly, a United City. Cherelle L. ParkerMayor Cherelle L. Parker 100th Mayor, City of Philadelphia

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4PHL FUNDING DETAILSPHL 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 manner similar to business-type activities.The Aviation Fund is self-supporting, using aircraft landing fees, terminal building rentals, concession 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.PHL/PNE LEADERSHIPAtif SaeedChief Executive OfficerDr. Jamaine MungoChief Information Security OfficerJames TyrrellChief Revenue OfficerKeith BruneChief Operating OfficerDelicsha WildsChief Administrative OfficerAllen MehtaChief Information OfficerKate SullivanChief Commercial OfficerCassie SchmidChief Strategy OfficerApi AppulingamChief Development OfficerTracy BordaChief Financial Officer

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2023 PHL/PNE ANNUAL REPORTOUR VALUESPEOPLE 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 accepting of all EXCELLENCE We hold ourselves to the highest of standards of service, innovation, and eiciencyOUR MISSIONProudly connecting Philadelphia with the worldOUR VISIONTo be a world-class global gateway of choiceWHAT WE STAND FORPHL passenger volume continued its post-pandemic growth in 2023. Last year, the airport welcomed 28.1 million passengers, up 3.1 million guests (or 12.6 percent) from 2022. As American Airlines’ transatlantic hub, PHL serves as the gateway for travelers from across the U.S. to begin their international excursions. Continued additions to Philadelphia offerings by airline partners, both domestic and international, makes PHL a convenient airport of choice for the 11-county Philadelphia Metropolitan statistical area. PASSENGER VOLUME   PRIDE

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6DOMESTIC INTERNATIONALNONSTOP DESTINATIONSCanadaYHZ Halifax, CanadaYUL Montréal – PET, CanadaYQB Quebec, CanadaYYZ Toronto, Canada CaribbeanAUA Aruba, ArubaBDA Bermuda, BermudaCUN Cancún, MexicoGCM Grand Cayman, Cayman IslandsMBJ Montego Bay, JamaicaNAS Nassau, BahamasPLS Providenciales, Turks & Caicos IslandsPUJ Punta Cana, Dominican RepublicSDQ Santo Domingo, 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, SwitzerlandMiddle EastDOH Doha, Qatar* Destinations served by American Airlines LandlineALB 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, NCCHO Charlottesville, VAMDW 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, OHDEN Denver, COVPS Destin/Ft. Walton Beach, FLDTW Detroit, MIFLL Fort Lauderdale, FLRSW Fort Myers, FLGRR Grand Rapids, MIGSO Greensboro, NCGSP Greenville/Spartanburg, SCMDT Harrisburg, PABDL Hartford, CTHHH Hilton Head Island, SCHOU Houston-Hobby, TXIAH 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, LALGA New York-LaGuardia, NY EWR New York, NJORF Norfolk, VAOGS Ogdensburg, NYMCO Orlando, FLECP Panama City, FLPNS Pensacola, FLPHX Phoenix, AZPIT Pittsburgh, PAPBG Plattsburgh, NYPWM Portland, MEPDX Portland, ORPVD 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, NC

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8Taking You to Friends and FamilyWhen Frontier Airlines added Santo Domingo, Dominican Republic, to its PHL roster, it became the only airline to offer nonstop service to that destination from PHL. “Philadelphia has a growing Dominican population and is home to a recently established Consulate General of the Dominican Republic. It will provide many Philadelphia-area residents with a direct connection to visit their loved ones during the holiday season and beyond,” said PHL CEO Atif Saeed.Taking You to New PlacesAlthough the calendar read August 2023, American Airlines had travelers planning for summer 2024 with new destination announcements: Nice, France; Naples, Italy; and Copenhagen, Denmark. “American has expressed its commitment to Philadelphia as its transatlantic hub, and the addition of these new routes for summer 2024 is proof of that commitment,” said PHL CEO Atif Saeed. “As the only American hub serving Copenhagen, Nice and Naples, PHL looks forward to welcoming both an increased number of international guests, as well as domestic passengers making connections to those amazing cities.” Flights to and from Nice and PHL will operate daily from May 6 to October 5. The Naples and PHL route will operate daily from June 5 to October 25. Service between Copenhagen and Philadelphia will operate daily from June 6 to October 5.New Destinations in 2023New Air Carrier in Existing Destination in 2023Restored Destinations in 2023Restored Air Carrier in Existing Destination in 2023New Destinations Announced in 2023 to begin in 2024New Air Carrier in Existing Destination announced in 2023 to begin in 2024PHL Averages309 Domestic DeparturesDaily AIR SERVICE Making it Easy to Get ThereIn July, American Airlines, The Landline Company and the Transportation Security Administration (TSA) launched an industry-first program at PHL that allows American Airlines customers traveling on Landline-operated motor coaches from Allentown/Bethlehem/Easton, PA (ABE) and Atlantic City, NJ (ACY) to clear security at their local airport and arrive airside in PHL to continue their journeys. “Airside service from ABE and ACY is a glimpse at the future of travel that Landline is creating, in which ground transportation is fully integrated into the travel day,” said Landline Cofounder and CEO David Sunde. “Arriving airside via ground transportation and immediately boarding your flight reduces both time and stress associated with flight connections.” The American/Landline service premiered in summer 2022.

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2023 PHL/PNE ANNUAL REPORT$30 Million Bipartisan Infrastructure Law Funding Supports Major Restroom Renovations and Energy OptimizationThe DOA has launched the largest phase of its signature Restroom Renovation Program thanks to Federal Aviation Administration (FAA) FY 2023 Airport Terminal Program grant funding. Phase 5-9 will reconstruct 30 existing and construct two new restrooms at PHL. The renovations bring smart restroom technology to optimize maintenance schedules, private nursing suites, service animal relief areas, and adult changing rooms. The FAA ATP grants also support the Terminal Energy Optimization Program (TEOP) which will reduce carbon emissions by replacing preconditioned air units and ground power units at 25 gates across the airport; install LED lighting in terminals and on roadways to improve energy efficiency; and upgrade 15 air handling units and the electrical substation and thermal plants in Terminal A-West. The PHL Restroom Renovation Program was awarded the 2023 March of Dimes Mission Award, which recognizes the design and construction of facilities that support maternal and infant health.M TO BUILD A BETTER PHL In September 2023, U.S. Senator Bob Casey Jr., U.S. Congresswoman Mary Gay Scanlon, U.S. Congressman Dwight Evans, State Representative Regina Young, Federal Aviation Administration (FAA) Director David Fish, and City of Philadelphia Office of Transportation, Infrastructure, and Sustainability Deputy Managing Director Michael Carroll joined DOA officials to break ground on the next phase of PHL’s multiyear Restroom Renovation Program. As part of the restroom program, the custodial locker rooms in Terminal C were completely rebuilt to provide employees with upgraded facilities.

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12Expanding Opportunities for Local ContractorsThe Capital Project Unit’s Small Order Purchase program helps smaller, emerging businesses gain access to DOA’s opportunities. One example is Hopeworks, a local non-profit organization that provides job training and job opportunities for young people in underserved communities. Hopeworks was awarded a contract to provide geographic information system (GIS) mapping for PHL’s tree inventory. Convenient, Secure, Touchless Departures for International VisitorsPHL’s biometric exit program provides international travelers with a secure, touchless departure process for identity verification that protects the privacy of all travelers. Now at 25 gates in Terminals A-East and A-west, the biometrics equipment helps U.S. Customs and Border Protection screen departing passengers on international flights safely and efficiently. State-of-the-Art Training Facility for Aircraft Rescue and Fire FightingOne of the ways the DOA remains prepared for emergencies and maintains the highest safety standards is through upgrading the Aircraft Rescue and Fire Fighting (ARFF) unit’s fire safety training equipment to the latest industry technology. Major upgrades were completed to the ARFF Fuel Spill Trainer facility and its Specialized Aircraft Fire Trainer (SAFT).A Better Experience at the GateNow arriving in Terminal E: newly furnished gates with comfortable seating, workstations and a whole lot more electrical outlets!

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2023 PHL/PNE ANNUAL REPORTIn 2023, the Philadelphia region was selected as one of 31 federal innovation and technology hubs to focus on supply chain and manufacturing issues in the production of cell and gene therapies. Having cold temperature-controlled storage and shipping solutions for pharmaceutical and other leading life sciences companies is important for growth. Bristol Group, Inc. is constructing a new state-of-the-art climate-controlled cargo facility totaling approximately 261,000 square feet on a 16.8-acre vacant parcel of land on the northeast side of PHL property. The addition of Bristol Group’s building will help address the critical need for refrigerated warehouse space and is expected to immediately attract cargo business currently served by other major airports and transportation networks in the region. The project’s unique multi-modal logistics location is adjacent to the PHL tarmac, with immediate access to a four-way interchange of Interstate 95 and less than five miles from the Port of Philadelphia.The new building will include approximately 241,000 square feet of climate-controlled warehouse space and will offer broad cooler and freezer temperatures to accommodate a variety of cargo related to pharmaceuticals, life-sciences, perishable food, and specialized electronics. The cargo facility is designed to accommodate single or multi-tenant occupancy with flexible and abundant loading capacity.THE FUTURE OF PHL CARGO PHL has officially moved into its new Airport Operations Center (AOC) in Terminal C. The AOC serves as the nerve center for information and deployment, bringing together Airport Operations Tower Coordinators (OTCs), Job Control operators and Systems Control (security) personnel into one facility. The facility also includes PHL’s latest investments in state-of-the-art technology so airport call operators, airport operations, job control, IT and security all work together in one area, creating synergy.TECHNOLOGY  INFRASTRUCTURE TO OPTIMIZE SMOOTH, EFFICIENT OPERATIONS“We see this as an important investment in the infrastructure of the global pathway of goods that will increase the throughput capacity and the lifespan of perishable goods traveling throughout the region,” said Dave Williams, Managing Director of Bristol Group, Inc. “We’re also excited about the positive economic impact this project will have on the surrounding Philadelphia area and look forward to continuing to work with PHL to support their growth objectives.”The facility will be operated by SPR Cold Storage & Distribution, led by President and CEO David Simpkins.

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14MEET PNENORTHEAST PHILADELPHIA AIRPORTIt may not be a commercial passenger airport, but PNE is an economic powerhouse estimated to have a $973 million impact and support more than 4,000 jobs. Its quality airfield systems, large runways, control tower and support services make it an airport of choice for many global corporations who use PNE on a regular basis for their corporate jets. Operations at PNE include business flying, personal and charter flying, law enforcement, banner towing, skydiving, medivac, organ transplant and support for the U.S. headquarters of Leonardo Helicopters, a major manufacturer of helicopters, aircraft and electronics. There are also four flight schools at PNE that enroll 300 students on average.Plans for Upgrades at PNEPNE is embarking on an ambitious renovation of its administration building and aiming for LEED Gold certification by incorporating several sustainable design features. The project is supported by funding from Pennsylvania’s Commonwealth Financing Agency (CFA). Every facet of the building, from its architectural integrity to its complex electrical, mechanical, and security systems, will be enhanced. Leonardo Helicopters US manufactures and repairs helicopters for civilian and military use and recently opened a training academy for pilots and maintenance technicians from all over North and Central America. Its 700 employees include skilled engineers, technicians, material and supply chain specialists, customer support representatives, and administrative business units for the U.S. and Central American markets. PNE is also home to a 24-Hour Customer Support Fleet Operations Center, a major parts distribution warehouse and a comprehensive training academy.PNE Taxiway L is undergoing reconstruction to meet modern FAA requirements with changes to geometry, LED lighting installation and full pavement reconstruction. This work is supported by over $3.5 million in FAA Airport Improvement Program (AIP) grant funding. Using a method called Full Depth Reclamation, 45 percent of project materials are being recycled on-site through this, leading to reduced cost, less construction traffic, a faster construction timeline and reduced carbon emissions.

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16PHL  PNE GRANTSfrom the FAA’s Airport Improvement Program (AIP) for the PHL Reconstruct Taxiway S (Construct), Package 1 project, and the PNE Rehabilitate Taxiway L (Construct), Phase III project.$2.8 Million for PNE$23.6 Million for PHL$1.2 Millionfor PHL from the TSA for Law Enforcement Officer (LEO) coverage at security checkpoints$1.0 Millionfor PHL SEPTA Platforms project from the PA Redevelopment Assistance Capital Program, (RACP)$1.0 Millionfor PHL FDR Park Wetlands project from the PA Redevelopment Assistance Capital Program, (RACP)$1.0 Millionfor PNE Administration Building Rehabilitation from Department of Community and Economic Development/Local Share (DCED/LS)$945,000for the PNE Security Fence from PA Department of Community and Economic Development (DCED)$600,000for PHL from the PennDOT Bureau of Aviation – AIP match for the PHL project$555,000for PHL from the TSA for canine team expenses$220,800for the Department’s Net Zero Decarbonization Plan from the Federal Aviation Administration Airport Improvement Program Supplemental Discretionary Grant$141,000for PNE from the PennDOT Bureau of Aviation – AIP match for the PNE project $100,000for South Commercial Road Rehabilitation project from the PA Department of Community and Economic Development (DCED)$100,000for ADA Improvements Terminals A-F project from the PA Department of Community and Economic Development (DCED)

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2023 PHL/PNE ANNUAL REPORTPREPARING FORIn 2026, the spotlight will be on Philadelphia as we host America’s 250th Birthday celebration, the FIFA World Cup 26™, the MLB All-Star Game and many more major conventions and events. As the gateway to the region, PHL is the first experience for many visitors, and we want to make it a great one! Our team is focused on key projects to be ready to greet the world.Roadways and SignageUpgrades to PHL’s Departures Roadway to accommodate changing transportation needs and address safety and accessibility. Airport FaçadeModernize and update the exterior finish of Terminal D to provide a welcoming, energy efficient and architecturally sleek design. Terminal and Landscaping RefreshRefreshing Terminals A-F and curbside landscaping, including new power seating, LED lighting and flooring upgrades.Digital Technology UpgradesNew Multi-Use Flight Information Displays (MUFIDs) throughout the airport, more Queue Management Displays for wait times, and updates to Terminals D/E exit lanes.Restroom Renovation ProgramModernize all passenger-facing restroom facilities to improve quality and comfort, expanding accessibility and improving sustainability.Strategic PlanningCollaborating with city, state and federal agencies along with airport partners on security, transportation and visitor readiness plans.Airport ExperiencesDeveloping experiential events, exhibits, airport activations, and pop-ups in conjunction with PHL Food & Shops and local tourism partners.Multilingual Accessibility Expanding multilingual signage, staffing capabilities and services.Guest ServicesAirport-wide employee customer service training and volunteer recruitment campaigns.CAPITAL PROJECTSGUEST EXPERIENCES

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18PREPARING THE FUTURE WORKFORCE:THE BRIDGE  INTERNSHIP PROGRAMSThe Department of Aviation’s BRIDGE program provides current PHL and PNE employees with career growth opportunities, enhances employee participation, and develops collaborations to sustain talent pipelines. As one of Workforce Development’s many initiatives aimed at increasing talent and retention, the program offers both internal and external pipelines that target employees, students, and apprentices through partnerships with local colleges and universities, the School District of Philadelphia and JEVS Human Services (JEVS). The BRIDGE program includes four important components: upskilling and reskilling employees, internships, and apprenticeships. Upskilling is an internal service in collaboration with the Human Resources and Training and Development Units. Employees can get career-mapping advice and learn what steps or education they need to progress in their career or expound on their skill sets by completing an intake interview. Employees are also encouraged to utilize the airports’ internal PHL University as well as the city’s current tuition reimbursement program. Reskilling consists of learning a new job and being trained for a position outside of an employee’s current role. Employees may qualify for civil service positions, with a higher salary, after completing certain requirements. On-the-job training, professional development coaching, mentoring, and certification or technical training programs are all part of the reskilling process. Summer 2023 marked the Department of Aviation’s full return of its internship program since 2019. The cohort of 17 high school and college students worked with teams in diverse units, including Engineering, Operations, Security, Marketing, Guest Experience, Accounting and Finance. One of the goals of the airports’ internship program is simple: to provide real-life practical work experience that students can take with them when they return to school and when they are ready to transition into their careers. The program is coordinated by Director of Workforce Development Chevelle Harrison. “We are so proud of the young people who spent the summer at PHL. They are hardworking and curious individuals. There’s no doubt that they will flourish – we look forward to watching their growth and development,” said Harrison. “We hope to see them in the near future.”Being a part of the airports’ team is more demanding than similar jobs in other City of Philadelphia departments, specifically because of the background check and badging process. This, along with well-documented post-pandemic hiring challenges across many industries, has made it difficult for the Department of Aviation to attract new employees for key positions. Over the last year, the Department of Aviation’s Chief Administrative Officer Delicsha Wilds and HR team have worked tirelessly to recruit, onboard and retain staff by attending job fairs and career day events across the city, advertising on social media and conducting interviews at a variety of hours to accommodate shift workers. While these efforts have produced some strong candidates, we still have many key vacancies. The airports also worked with the City’s Office of Human Resources to review and update hard-to-fill job specifications, qualifications and experience. In addition, we sought and obtained various salary increases for Civil Service employees.WORKING TO MEET THE HIRING CHALLENGE WITH NEW INITIATIVES

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2023 PHL/PNE ANNUAL REPORTPHL welcomed approximately 3.45 million international travelers for the year ending in June 2023. According to Insider Monkey, this places PHL among the United States’ top 20 airports for international passenger traffic. PHL ranks #5 for Best Airports for Layovers for frequent flyers according to MarketWatch, based on the number of lounges and other unique amenities available. Food and beverage also weighed heavily in this category. According to PlanetWare, PHL has the fourth-shortest average security wait time in the U.S.The Family Vacation Guide ranked PHL fourth on its list of the world’s most family friendly airports for 2023. Airports were ranked based on on-time departures, cancellation rates, unlimited free Wi-Fi, and number of restaurants and things to do. The March of Dimes recognized PHL’s Restroom Renovation Program with its Mission Award, which was presented at the March of Dimes’ 30th annual Philadelphia Transportation Building & Construction Awards luncheon on October 18, 2023.PHL won recognition in several Stevie Award categories in 2023 for achievements in diversity and inclusion, marketing campaigns, guest experience and special events. AWARDS  ACCOLADES CEO Atif Saeed was elected to the AAAE Board of Directors Chief Financial Officer Tracy Borda was appointed Chair of the Finance Committee Steering Group for Airports Council International – North America Chief Administrative Officer Delicsha Wilds was among those presented with a Philadelphia Business Journal Diversity in Business Award in recognition of her dedication to diversity in the workplace Chief Information Officer Allen Mehta was named a Philadelphia Titan 100 Sustainability Manager Jessica Noon was elected as one of six at-large airport members on the Airport Council International-North America Environmental Affairs Committee STAFF RECOGNITION Airport Carbon Accreditation is a global program that monitors airport efforts to reduce carbon emissions.

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20Making a Memorable Travel ExperienceOn November 1, PHL kicked off one of its most popular programs to date, the PHL Wingmate Guest Pass. The program, which allows nonticketed guests to apply for a one-day pass to access PHL’s terminals, post-security, from 4 a.m. to 10 p.m., gives loved ones the opportunity to spend more time with their family members before take-off or to greet loved ones at their arrival gates. From the introduction of the Wingmate program through the end of 2023, approximately 1,577 passes were approved. Passholders complete an online application prior to their desired visit date and receive a digital pass if approved. The pass also includes exclusive deals at select PHL Food & Shops concessions. Supporting Neighbors in NeedA collaboration between the hunger relief nonprofit Philabundance and PHL Food & Shops reached a significant milestone in 2023. From 2019 through March 2023, PHL Food & Shops concessionaires, including Chickie’s & Pete’s, OTG, HMS Host, La Colombe, Chick-fil-A, and Hudson News donated 108,825 pounds of food and approximately 141,500 meals of soon-to-expire food to support neighbors in need. Many of the donated items are ready-to-go meals, such as sandwiches and salads. The majority of these foods are approaching their “best by” dates – the dates the restaurant or retailer decides an item is no longer ideal for sale to customers even though it is still safe for consumption for some time after. Philabundance has created guidelines to determine the number of days beyond an item’s “best by” date that the food is still wholesome.“We are proud and passionate about this food donation program,” said Melwood Hannah, Vice President and General Manager of MarketPlace PHL. “As a family of merchants and concessionaires, helping to put food on the table for others and giving back to our community is always a top priority.”GUEST EXPERIENCES Recognizing a Job Well DonePHL’s Employee Recognition Program honors employees from all airport stakeholders for going above and beyond their typical job duties to create a positive experience for PHL’s guests. The program strives to boost employee morale and have a positive impact on PHL’s culture airport-wide. In 2023, 50 airport employees from across 26 organizations, including the Department of Aviation, concessions, TSA, airlines and baggage handling were recognized for demonstrating the airport community values: Customer-Centrism Teamwork, Transcending Expectations, Proactive Communication, Effectiveness, Respect, Integrity and Courage.

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2023 PHL/PNE ANNUAL REPORTdeveloped by Eric Dale. Twenty-five hearts made by local street artist Amberella are hidden throughout Terminals A-East and A-West. Guests who find 10 or more by following clues on QR codes can win prizes.A Silver Partnership2023 marked the 25th anniversary of the PHL Food & Shops Program, MarketPlace PHL, a private partner of PHL’s food and retail programs. In 1998, LeJeune & Associates, a Philadelphia-based retail development, management, and consulting firm, Ready to ServeGuest assistance is available to PHL travelers 24 hours a day. More than 25 PHL Navigators provide information in person and virtually at post-security information desks and in the terminals 24/7. Fifty-five Volunteer Navigators offer customer service at all terminal information desks seven days a week from 8 a.m. to 8 p.m. PHL kicked off the summer of 2023 with the 25th anniversary celebration of its award-winning Airport Exhibitions Program. A Celebration 25 Years in the MakingSince 1998, local artists and arts organizations have filled PHL’s terminals with more than 500 unique exhibitions. In 2022-23, more than 88 percent of the exhibitions featured artwork by women and minorities.“PHL has a unique opportunity with its global audience to promote Philadelphia’s unique treasures to the world – its arts, culture, and history,” said PHL Director of Guest Experience Leah Douglas, who started the program in 1998. “I have always said that I am lucky to be working in Philadelphia because of the artists who live in the region. Philadelphia has numerous art schools that graduate talented artists and attract talented faculty who teach those students. Along with the diversity of museums – it’s a city with a vast historical and contemporary cultural vibrancy, and the airport program is a reflection of those communities and what is important culturally to the region.” The celebration also marked the official launch of the “PHL HeART Scavenger Hunt Challenge” and MarketPlace Development, a Boston-based airport retail development firm, joined together to form MarketPlace PHL. Their goal was to create a robust concession program that has become a model for airports across the country.Today, there are more than 170 shops, restaurants, and services in the award-winning program, which includes a wide variety of local, regional, and national brands.“MarketPlace PHL and PHL have worked well together because we share the same goal of providing our passengers with a first-class experience within the short time that they’re here in our airport,” said Department of Aviation CEO Atif Saeed. “MarketPlace PHL features local businesses, well-known national brands, and forward-thinking concepts. Clarence [LeJeune, Operating Partner of MarketPlace PHL] and Mel [Hannah Vice President, and General Manager of MarketPlace PHL] have worked hard to ensure ACDBE businesses are represented at PHL.”

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22New Fleet ElectrificationThe airport continues to implement its vehicle electrification strategy with the purchase of 10 fully electric vehicles in 2023: four Ford Mach-E Mustangs and six Ford E-Transit Vans. Use of these electric vehicles will reduce our airport carbon emission footprint by approximately 50 tons of carbon dioxide emissions annually. To power our electric vehicle fleet, five EV Level 2 charging stations have been installed, with two Level 2 charging stations planned for installation in 2024 and with five Level 3 fast-charging stations planned for installation in 2025. Air Quality AchievementsFrom 2011 to 2023, the airport has installed 46 Pre-Conditioned Air Units (PC-Airs) and 11 Ground Power Units (GPUs) to reduce jet idling at our gates and the resultant emissions produced from spent jet fuel as well as 129 chargers to support electrification of ground support equipment, all through the Federal Aviation Administration’s Voluntary Airport Low Emissions (VALE) Grant Program. Together, these projects have reduced harmful air pollutants and carbon emissions. In 2023, the DOA was awarded $15 million in Bipartisan Infrastructure funding to advance its Terminal Energy Optimization Program (TEOP).Department of Aviation Publishes ESG ReportThe airport Sustainability team has been producing annual sustainability and environmental reports since 2016, and this year partnered with the Finance team to develop a comprehensive 40-page Environmental, Social and Governance (ESG) Report for Fiscal Year 2022 that provides a deep dive into the Airport’s environmental metrics and targets. ESG reporting has emerged as a new trend throughout the airport industry, and the DOA has shown its leadership in sustainability with this report. 2023 Waste Audit The Sustainability team conducted a hands-on audit of our waste stream to better understand where and how we can improve recycling. The audit focused on landside locations that have not traditionally been targeted for recycling and discovered that up to 25.8 percent of our waste stream is comprised of recyclable items. This data will help direct our recycling program expansion as we march toward our Zero Waste goal.SUSTAINABILITY Electrification of Southwest Airlines’ Ground Support EquipmentThe Sustainability Team collaborated with Southwest Airlines to electrify their entire fleet of ground support equipment (GSE). The DOA acquired $777,000 in funds from the FAA Voluntary Low Emissions program to install 12 electric GSE chargers to power this equipment, reducing emissions at the airport by 950 metric tons of CO2 annually. Converting this equipment from diesel to electric power demonstrates a commitment to decarbonization by both Southwest and the Airport, and is another step toward the Airport’s goal of net zero emissions by 2050.

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2023 PHL/PNE ANNUAL REPORTTaking Off on Runway 8-26: PHL’s 6th 5K Rain caused by Tropical Storm Ophelia couldn’t dampen the spirits of the hundreds of runners and walkers that departed on Runway 8-26 for PHL’s sixth 5K on the Runway. Proceeds from the race totaled more than $35,500 and supported Eastwick United, Eastwick Friends and Neighbors Coalition and March of Dimes. Lunch with Leaders Makes Return Trip to PHLLed by Director of Community Engagement and Outreach Keesha Lane, PHL welcomes students to visit PHL to study the behind-the-scenes activities. “We are elated to reestablish this connection to the community that had been restricted during the pandemic. Out of an abundance of caution, we paused the program, but we’re back!” she said.Last year, students from Cheltenham’s Elkins Park School Leadership Academy, Camden’s KIPP Hatch Middle School and Philadelphia’s Frankford and Swenson Arts & Technology High Schools were among those to tour the airport, meet with eaders – including CEO Atif Saeed, CAO Delicsha Wilds, airport operations staff, airline personnel and PHL stakeholders – and learn about career opportunities in aviation. Giving Tomorrow’s Engineers a Glimpse of Airport ProjectsThe Department of Aviation welcomed high school students from all over the country on July 14 and July 28 as part of the University of Pennsylvania’s Try Engineering Summer Institute. The students were taken on a tour of PHL by several members of the Capital Development Group, including Chief Development Officer Api Appulingam, P.E., A.A.E., Airport Architectural Manager Vincent Adamo, Construction Management Lead Allyson Radford, and engineering co-op student Tamika Tukes. The tour included stops at various past and present Capital Development projects, including the Restroom Renovation project, and Gate D-1 hold room refresh and tower deconstruction. After the tour, students were divided into smaller groups with the leaders, which gave them a chance to ask the airport team members about their roles at PHL, their personal career journeys and advice that they have for college.PHL Launches Alternative Response UnitThe Philadelphia Fire Department’s (PFD) newest Alternative Response Unit – AR30 – went into service at PHL in summer 2023. The program stations emergency medical personnel in the airport terminal to provide a quick response to passengers and employees who need immediate medical attention. PHL joins cities such as Atlanta, Charlotte, Chicago, Miami and San Francisco in having either a roaming unit or medical facilities within the terminal complex. The two PFD medics assigned to AR30 respond on a non-transporting medical cart with advanced life support capabilities, including CPR, AED, IVs, heart monitors, medications, bandaging, and other patient care equipment. The unit, which is based in Terminal C, operates from 8 a.m. to 8 p.m. and provides help to anyone inside PHL’s terminals behind the security checkpoints. Testing PHL’s Response on Land and WaterEvery three years, PHL is required by the FAA to conduct a full-scale Emergency Preparedness Exercise (EPEX) to test and evaluate emergency response procedures to ensure that not only airport personnel but also local first response units and hospitals are ready to act during an emergency. For the first time since 1999, the 2023 EPEX included a water rescue. Airport Fire Unit Engine 78, police and fire units from Philadelphia and Delaware County, federal agencies, ambulance services and the City’s Office of Emergency Management all responded to the volunteer “victims” who had been passengers on a plane that encountered severe wind shear on final approach to PHL and broke in two, with half landing in the Delaware River. Official evaluators, consisting of aviation and first responder professionals, assessed the procedures of responding emergency units. A “hot wash” session at the conclusion of the event allowed participants to discuss their observations of the response. VIPs (Very Important Puppies) at PHLPHL hosted 25 Very Important Puppies for a special event on November 4. The German Shepherds, Golden Retrievers, Labrador Retrievers, and Labrador/Golden Retriever mixes, who are currently in training with The Seeing Eye® to become guide dogs for the blind or visually impaired, visited the airport to learn how to navigate an airport from shuttle buses, elevators, and security checkpoints to boarding a plane and baggage claim. The Dogs of PHLThe PHL Wagging Tails Brigade therapy dogs joined TSA, U.S. Customs and Border Protection and Philadelphia Police-Airport Division K-9 working dogs on December 27 to demonstrate the various roles that dogs have at the airport, from protecting passengers to providing comfort to travelers. Helping Children Learn to FlyAmerican Airlines and Piedmont Airlines hosted “It’s Cool to Fly American” at PHL on May 20. More than 30 autistic children and their families were able to experience the airport travel process from check-in to security, boarding and high-speed taxi without leaving the ground. The program is designed to make air travel less overwhelming for everyone. PHL  PNE IN THE COMMUNITY

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24FINANCIAL SUMMARYDepartment of Aviation and Airlines Agree to New Use and Lease AgreementThe Department of Aviation and its airline partners agreed to a three-year Airport-Airline Use and Lease Agreement for PHL and PNE that includes options for two one-year extensions. The agreement went into effect July 1, 2023, governs airline use of the City’s facilities at PHL, and provides for $935 million in funding for capital projects over the proposed three- to five-year term, including: • Mechanical and systems upgrades throughout the airport, such as HVAC; wayfinding; moving walkways. • Airfield rehabilitation to provide for safe takeoffs, landings, and movement across the airport.• Investment in preliminary design for cargo projects on the west side of the airport, plus the design construction for aviation-related development in the closed portion of the former economy lot. • Funding to support terminal access and the movement of people throughout our facility such as roadway work, lighting, and signage.S&P, Fitch Assign High Ratings to PHL’s Revenue BondsStandard & Poor’s (S&P) assigned an “A+” rating with a stable outlook on PHL’s general airport revenue bonds, up two notches from the “A-“ rating PHL received in 2021. PHL has approximately $1.6 billion of debt outstanding, consisting of $1.5 billion of airport revenue bonds. Most of the airport’s debt is fixed rate.S&P assigned an “A+” rating, to the airport revenue and refunding bonds Series 2015A, 2017A and 2017B. In explaining its rating, S&P stated, “The upgrade reflects a passenger recovery resulting in an improved enterprise risk profile to very strong and financial metrics we expect will be maintained at levels generally consistent with a strong financial risk profile.” Fitch Ratings, one of the world’s leading financial ratings agencies, assigned a positive outlook to PHL’s revenue bonds and affirmed its ‘A’ rating on $1.45 billion of debt in its ratings report issued on September 1, 2023. Fitch cited the airport’s new airline use agreement, which “incorporates enhanced cash-reserving mechanisms supportive of the airport’s upcoming large capital plan (CDP), and demonstrates airline carriers’ ongoing commitment to serving the airport and its service area.”Fitch also noted that PHL’s leverage remains low for an airport in the ‘A’ category and has a large and stable service area with solid O&D traffic and cited PHL’s improved liquidity position and strong expense management. Over 400 Join Department of Aviation for First In-Person Business Opportunity Forum Since 2019The Department of Aviation hosted more than 400 representatives from large firms, small businesses, and minority-owned and disadvantaged business enterprises and organizations at its 11th Annual Business Opportunity Forum, held at the Airport Marriott Hotel on September 26. Four hundred fifty-five of the 487 companies and organizations registered for the BOF were Minority/Women/Disadvantaged Business Enterprises (M/W/DBEs). A total of 218 are working on airport contracts in the current year.In panel discussions with airport leaders, participants learned about the variety of opportunities available at PHL and PNE with the Department of Aviation and its stakeholders. Participants were also given time to network with airport staff and local business leaders. PHL Launches ACDBE AcademyLast summer, PHL introduced its pilot Airport Concessions Disadvantaged Business Enterprise (ACDBE) Academy, with four modules designed to: • Assist small diverse regional firms to better understand opportunities found in the concessions program at PHL and other airports• Increase the number and capacity of ACDBE firms• Develop ACDBEs into new and/or expanded roles • Discuss PHL’s current concessions program and the requirements and benefits of becoming an ACDBEThe Academy, designed by PHL’s Office of Business Diversity, is a collaborative effort with the Airport’s Revenue Office and MarketPlace PHL. D I V E R S I T Y BUSINESS ENTERPRISE PARTICIPATION GOALSPHL Office of Economic Opportunity (OEO) ProgramPHL Federal Disadvantaged Business Enterprise (DBE) ProgramPHL Federal Airport Concessions Disadvantaged Business Enterprise (ACDBE) ProgramPHL ACDBE Marketplace Storefront Concessions ProgramFY GOALFY GOALFY GOALIN RECEIPTSOF TOTAL SALESFY ACHIEVEMENTFY ACHIEVEMENTIN AWARDSFY ACHIEVEMENT.M.M

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2023 PHL/PNE ANNUAL REPORTFiscal Year 2023Fiscal Year 2022Dollar Increase (Decrease)Percentage Increase (Decrease)Current assets $ 554,741 $ 427,525 $ 127,216 29.8%Non-current assets 929,328 867,459 61,869 7.1%Capital assets, net 2,318,310 2,285,675 32,635 1.4%Total assets 3,802,379 3,580,660 221,719 6.2%Deferred outflows 23,127 27,027 (3,900) (14.4)%Current liabilities 382,872 337,157 45,715 13.6%Non-current liabilities 1,882,222 1,987,976 (105,754) (5.3)%Total liabilities2,265,094 2,325,133 (60,039) (2.6)%Deferred inflows 185,547 116,755 68,792 58.9%Net position:Net investment in capital assets 915,280 895,169 20,110 2.2%Restricted for capital projects 131,783 93,943 37,841 40.3%Restricted for debt service 168,691 168,718 (27) (0.0)%Unrestricted 159,109 7,968 151,141 1896.7%Total net position $ 1,374,864 $ 1,165,798 $ 209,065 17.9%Fiscal Year 2023Fiscal Year 2022Dollar Increase (Decrease)Percentage Increase (Decrease)Operating revenues $ 395,988 $ 321,203 $ 74,785 23.3%Less: Operating expenses (367,541) (346,082) (21,459) 6.2%Operating gain (loss) 28,447 (24,879) 53,326 214.3%Non-operating revenue, net 135,982 55,159 80,822 146.5%Income before capital contributions 164,428 30,280 134,148 443.0%Capital contributions 44,637 71,505 (26,868) (37.6)%Changes in net position 209,065 101,785 107,281 105.4%Net position beginning of year 1,165,798 1,064,013 101,785 9.6%Prior period adjustments – – – –Net position end of year $ 1,374,864 $ 1,165,798 $ 209,065 17.9%CITY 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)

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26(Amounts expressed in thousands)Airline Non-airline$150,000$100,000$50,000$0$250,000$200,000FY FY Fiscal Year 2023 Fiscal Year 2022Dollar Increase (Decrease)Percentage Increase (Decrease)Operating revenuesRents $ 97,367 $ 109,403 $ (12,036) (11.0)%Landing fees 85,050 64,622 20,428 31.6%Passenger fees 29,913 21,444 8,469 39.5%Total airline revenues 212,331 195,469 16,862 8.6%Parking 67,321 27,317 40,003 146.4%Food/beverage/retail 40,110 20,297 19,812 97.6%Rental cars 22,152 21,798 353 1.6%Ground transportation 13,685 9,501 4,184 44.0%Other operating 40,390 46,819 (6,430) (13.7)%Total non-airline revenues 183,657 125,734 57,923 46.1%Total operating revenue $ 395,988 $ 321,203 $ 74,785 23.3%Non-operating revenuesPassenger facility charges 53,393 48,553 4,841 10.0% Customer facility charges 20,498 12,231 8,267 67.6%Interest income 37,194 (8,753) 45,947 524.9%Lease interest revenue 3,397 2,599 798 30.7%Operating grants 75,823 54,629 21,194 38.8%Other non-operating (39) 60 (99) (165.8)%Total non-operating revenue 190,266 109,319 80,948 74.0%Total revenues$ 586,254 $ 430,522 $ 155,732 36.2%REVENUES BY SOURCE(Amounts expressed in thousands)OPERATING REVENUE FY 2023 – $396.0M

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2023 PHL/PNE ANNUAL REPORTFiscal Year 2023Fiscal Year 2022Dollar Increase (Decrease)Percentage Increase (Decrease)Operating expensesPersonnel services $ 77,026 $ 76,876 $ 150 0.2%Employee benefits 30,882 38,727 (7,845) (20.3)%Purchase of services 125,459 105,600 19,858 18.8%Materials & supplies/ equipment 6,991 5,772 1,219 21.1%Other operating 5,720 4,890 830 17.0%Depreciation 121,462 114,217 7,245 6.3%Total operating expenses 367,541 346,082 21,458 6.2%Non-operating expensesDebt service interest 54,284 53,300 984 1.8%Other non-operating – 859 (859) –Total non-operating expenses54,284 54,160 124 0.2%Total expenses $ 421,825 $ 400,241 $ 21,582 5.4%EXPENSES BY SOURCE(Amounts expressed in thousands)STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION UNAUDITEDFiscal Year 2023Operating revenuesAirline revenuesRents $ 97,367,383Landing fees 85,050,216International arrival fees 29,913,198Total operating revenues212,330,797Non-airline revenuesConcessions 152,190,638Other rents 23,172,362Utilities and other fees 2,774,649Other operating revenues 5,519,145Total non-airline revenues183,656,794Total airline revenues 395,987,591Operating expensesPersonal services 77,025,555Purchase of services 125,459,282Materials and supplies 6,991,294Employee benefits 30,882,367Indemnities and taxes 5,720,319Depreciation and amortization 121,461,807Total operating expenses 367,540,624Operating income 28,446,967Non-operating revenues (expenses)Federal, state, and local grants 75,823,191Investment earnings 37,193,517Lease interest revenue 3,396,576Interest expense (54,284,018)Passenger facility charges 53,393,051Customer facility charges 20,498,480Gain/(Loss) on disposal of capital assets (107,427)Other revenue/(expense) 68,134Total non-operating revenues (expenses)135,981,504Income before capital contributions 164,428,471Capital contributionsFederal, state and local grants 44,636,923Contributed assets –Total capital contributions 44,636,923TransfersTransfers (out)/in –Total transfers –Change in net position 209,065,394Net position beginning of period1,165,798,302Net position end of period $ 1,374,863,696

Taking You Places - PHL/PNE 2023 Annual Report

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