An Airport’s Ups and Downs : Burbank: Despite setting a record for passenger volume--3.78 million--the facility’s net income dropped by 18% and jet flights decreased, says an annual report.

More passengers than ever used Burbank Airport in the most recent fiscal year, yet the airport’s net income dropped sharply and the number of commercial jet flights decreased about 16%.

Passenger volume reached 3.78 million during the 1991-92 fiscal year that ended June 30, the second consecutive record-setting year and a 1.4% increase from the previous year, according to an annual report released Monday.

The number of commercial jet flights from the airport dropped from nearly 60,000 in the previous fiscal year to about 50,000 in 1991-92, according to the report.

Airport spokeswoman Elly Mixsell said the introduction of larger jets able to accommodate more passengers, and fewer empty seats, explains the divergence.

“The planes that have been going out of here go out with more people,” she said.

But despite the increase in the number of passengers, the airport’s net income dropped by 18% to about $3 million, the report said.

The drop in profits was due to higher overhead--including salary increases and more expensive contracts, financial services, utilities and insurance--according to the report.

In addition, the airport wrote off about a half-million dollars more for depreciation than the previous year and collected about a half-million dollars less from investments, the report said.

Also cutting further into the profits was a $548,000 contribution the airport made toward sound-proofing Luther Burbank Middle School, which is located under the airport’s flight path.

A federal grant paid for about $2.2 million of the $2.7-million project, airport officials said.

“The big-ticket items were the depreciation, the reduction in investment income and the money we kicked in for Luther Burbank Middle School,” said Kathy David, manager of airport administration.

The latest passenger figures represent a leveling out in passenger volume, which had increased by 26% in 1990-91 compared to the previous year.

The increase last year was attributed to a marketing blitz that included a major billboard campaign and a takeoff in airline ticket sales sparked by the arrival of Southwest Airlines in April, 1990.

When the financially ailing USAir left Burbank Airport and five other airports in California in May, 1991, Southwest and other airlines already operating out of Burbank moved in to fill the void, flying more often and, in most cases, charging lower rates.

Airport officials also attributed the latest increase in passenger volume partly to the efforts of Southwest Airlines.

“Southwest Airlines was again one of the keys to Burbank’s ongoing success,” the report said.

“Southwest grew its passenger base by 74% over last year and claimed over 40% of Burbank’s overall market.”

During the same period, passenger volume at Los Angeles International Airport increased by about 1% from 45.7 million in fiscal 1990-91 to 46.2 million in fiscal 1991-92, according to LAX officials.