COVID-19 Financial Overview
March 24, 2020

Background
The accelerating COVID-19 infection
rate and government response is having
a significant impact on Port business
operations
The airport is currently experiencing
the most severe impacts; this year's
cruise season is also at significant risk
Some Maritime/EDD commercial
businesses affected
Financial impacts to NWSA appear
moderate at present

2

Airport activity is dropping precipitously
TSA checkpoint activity down 80%+ in recent days




3

Airline Capacity Cuts
(as of 3/23/20)
Alaska: -10% April; -15% May
Delta: -70% network-wide (next few months)
United: -60% network-wide (April & May)
American: -20% April, -30% May domestic
Southwest: -20%, 4/14-6/5
Hawaiian: flights suspended from late March UFN
JetBlue: reducing from 7 flights/day to 3 flights/day in April
Spirit: reducing from 6 flights/day in April to 2-3 flights per day
Int'l service: Europe, Asia & Canada services mostly suspended,
Mexico service changes unknown (Int'l capacity reduction of 90%+)

4

Airport COVID-19 Impact Projection (March 20)
Monthly Enplanement Change vs. Prior Year
35% reduction vs.
20%
13%
10%   6%                                                                   2019.
0%
Jan    Feb   Mar    Apr   May   Jun    Jul    Aug   Sep    Oct    Nov   Dec
-10%                                                          -3%   -3%
-9%               -8%
-20%
-30%
-31%
-40%
-50%
-53%
-60%
-70%
-72%
-80%                     -75%  -75%  -75%


5

9/11             Monthly Enplanement Change vs. Prior Year
40%                                                       26%
20%                                                           11%
1%
0%
-20%                 -11% -9%  -7%  -6%  -6%  -7%  -5%  -7%  -5%
-16% -14%
-40%  -26%                                                                                 The COVID-19 crisis is
-60%
-80%
-100%                                                                                        projected to have a
S-01 O-01 N-01 D-01 J-02  F-02 M-02 A-02 M-02 J-02  J-02  A-02 S-02 O-02 N-02             significantly greater impact
Great Recession
40%                                                                             on SEA passenger traffic than
20%                                                           1%  3%
0%                                                                       previous downturns
-20%  -2%  -8%  -4%  -6%                                     0%  0%
-9%  -5%  -4%  -5%  -4%  -3%  -5%
-40%
-60%
-80%
-100%
O-08 N-08 D-08 J-09  F-09 M-09 A-09 M-09 J-09  J-09  A-09 S-09 O-09 N-09 D-09
COVID-19 (est. as of 3/20)
40%
20%
0%
-20%                                -9%  -3%  -3%  -8%
-40%                           -31%
-60%
-53%
-80%
-75% -75% -75% -72%
-100%
M-20 A-20 M-20 J-20  J-20  A-20 S-20 O-20 N-20 D-20 J-21  F-21 M-21 A-21 M-21

6

Cruise season at risk
Outbreaks of COVID-19 onboard
and quarantined ships have
raised significant concerns.
CLIA has announced voluntary
suspensions of cruises from US
ports for 30 days.
Canada has closed its ports to
cruise ship calls until July 1.


7

Financial Considerations
COVID-19 will result in significant revenue reductions
Impacts are difficult to estimate given substantial uncertainty regarding
the depth and duration of the crisis, with new information arriving
almost daily
Key considerations are operating cash balances, operating & non-
operating cash flows, and capital spending
Revenue bond debt service coverage is also a key measure
Unlike many other governments, the Port is not required to match
revenue reductions with equivalent expense reductions
Credit markets are currently stressed, limiting access to outside capital

8

Responses/Early Actions
Conducting detailed financial analyses to assess impacts on cash flow
and liquidity
Hiring freeze in place
Identifying Port-wide operating and capital expenditure reductions
Reviewing other expenditures that may be deferred
Pursuing $200 million bank credit facility for additional liquidity
Planning for airport bond refunding for debt service savings/possible
restructuring when markets recover
Advocating for federal funding for economic support and recovery,
particularly for airports and small businesses

9