Dallas Fort Worth International Airport (DFW) is the primary international airport serving the Dallas-Fort Worth metroplex and the North Texas region.
This year, DFW celebrates 50 years since the first passenger flight took off - congratulations! Can you talk us through the historic significance of the airport to the state of Texas and its economy?
Dallas Fort Worth International Airport is a massive economic engine for the North Texas region. We are the third busiest airport in the world—recently overtaken by Dubai—and we support 600,000 jobs directly and indirectly, contributing $38 billion in annual payroll. Additionally, we generate over $5 billion in taxes yearly, which goes back to the North Texas region and the state.
We take our role very seriously and aim to ensure everyone in the region benefits from our growth. We have a supplier diversity program supporting small, minority, and women-owned companies. With $9 billion in planned capital improvements by the end of the decade, we're committed to driving economic activity and providing opportunities for everyone to participate in our airport's success.
DFW took a deep hit during the Covid pandemic but has since been steadily recovering. Where are you now in relation to pre-pandemic levels?
When COVID hit in 2020, we lost 95% of our business and revenue within two weeks. Fortunately, our growth returned quicker than most airports worldwide. In 2019, we had 73 million customers, and this year, 2024, we expect to close with around 87 million customers, far exceeding our pre-pandemic levels.
During the pandemic, no one at DFW lost their job or saw changes to benefits, so when business returned, our workforce was ready. We also supported our business partners, waiving around $70 million in rental fees for about a year and a half, which allowed 98% of them to survive. Additionally, we continued investing in the airport, building new gates and infrastructure, ensuring we were prepared for the post-pandemic surge in traffic.
More established airports face the prospect of large-scale modernization over the next few years. What is the focus and roadmap for DFW and its improvement plans?
We are investing $9 billion over the next five years in various projects. This includes building a sixth terminal and reconstructing an existing one to enhance the customer experience. We're also upgrading infrastructure, like maintaining our bridges, 1,200 lane miles of roadway, and seven runways. We're integrating advanced technology, such as digital twin technology, to manage and predict issues with our facilities in real-time, which allows us to be proactive instead of reactive.
On the customer side, we've invested in biometrics and real-time information displays at security checkpoints to make the travel experience smoother. The biometric systems are already in use at DFW, and we've implemented digital twin technology for about half of our existing terminals. We’re focused on expanding this technology as we build and reconstruct terminals.
The airport has an ambitious 2030 target for achieving carbon neutrality. Where do you consider the area with the most investment potential for reaching your target?
We’ve been on our sustainability journey for over a decade, and today, DFW is the largest carbon-neutral airport in the world. Seven years ago, we committed to purchasing 100% of our power from wind sources, which saved us $20 million over seven years. Our buses run on renewable natural gas, saving over $1 million a year. The new central utility plant, set to open in the next couple of years, will be the final step to achieve carbon net zero by 2030. At that point, we won’t need to purchase carbon credits, as we’ll be entirely neutral.
There haven’t been any significant drawbacks. We're not zealots about sustainability; instead, we focus on practical, long-term solutions. For example, sustainable aviation fuel (SAF) is an area we’re exploring, but it's currently not produced at scale and is 3-5 times more expensive than jet fuel. Another example is the use of dynamic glass in our terminals, which not only improves customer comfort but also reduces our energy costs.
These investments show that sustainability can be both environmentally and economically beneficial. We are prepared for eVTOLs, though I believe integration into airspace will take longer than some predict. The technology is ready, but it will take time to integrate eVTOLs with FAA regulations and airspace providers.
What other notable trends and challenges are presenting themselves to you in 2024 as passenger traffic ramps up, amongst other demands?
Luckily, our workforce has stabilized, with turnover being the lowest in eight to ten years. Supply chain challenges persist, but they’re different from the pandemic-era issues. The Dallas-Fort Worth region is rapidly growing, and with $9 billion in projects over the next five years, we’re competing with other major infrastructure projects for resources. Power supply is another challenge. We're working on building a microgrid at DFW, particularly for our rental car center, to ensure long-term power resiliency.
The most notable change has been the shift in travel demographics. We’ve seen an increase in leisure travel, now at 120% of pre-pandemic levels, while business travel is slowly returning, reaching about 90%. This change has altered travel patterns during the week. Previously, travel was concentrated on Mondays and Fridays. Now, people travel throughout the week, making Thursdays and Saturdays much busier than they used to be.
