Scheduled Airline Operating Agreement and Terminal Building Lease with Alaska Airlines, American Airlines, Inc., Delta Airlines, Inc., Southwest Airlines Co., and United Airlines, Inc., and the Scheduled Cargo Airline Operating Agreement and Cargo Building Lease with Federal Express Corp., and United Parcel Services

Mayor Timothy M. Keller CITY OF ALBUQUERQUE Albuquerque, New Mexico Office of the Mayor INTER-OFFICE MEMORANDUM 3/18/2026 TO: Klarissa J. Pe?a, President, City Council FROM: Timothy M. Keller, Mayor SUBJECT: title Scheduled Airline Operating Agreement and Terminal Building Lease with Alaska Airlines, American Airlines, Inc., Delta Airlines, Inc., Southwest Airlines Co., and United Airlines, Inc., and the Scheduled Cargo Airline Operating Agreement and Cargo Building Lease with Federal Express Corp., and United Parcel Services body Submitted herewith for City Council approval the above referenced agreements. This action will allow the City to enter into five (5) year agreements with Alaska Airlines, American Airlines, Inc., Delta Airlines, Inc., Southwest Airlines Co., United Airlines, Inc., Federal Express Corp., and United Parcel Services to lease certain premises and use certain facilities at the Sunport to provide air carrier services and to provide air transportation of property, cargo, mail and express package delivery and freight forwarding services to residents and small business in Albuquerque and New Mexico. Each passenger airline will sign identical versions of the Scheduled Airline Operating Agreement and Terminal Building Lease, and each cargo airline will sign identical versions of the Scheduled Cargo Airline Operating Agreement and Cargo Building Lease. The initial Term of these agreements shall begin on July 1, 2026, and end June 30, 2031, followed by one optional three (3) year renewal period and then one additional optional two (2) year renewal period. These agreements are estimated to provide $33,000,000 per year in revenue for the Aviation Department. Scheduled Airline Operating Agreement and Terminal Building Lease with Alaska Airlines, American Airlines, Inc., Delta Airlines, Inc., Southwest Airlines Co., and United Airlines, Inc., and the Scheduled Cargo Airline Operating Agreement and Cargo Building Lease with Federal Express Corp., and United Parcel Services. Approved: Approved as to Legal Form: 3/25/2026 | 3:24 PM MDT Samantha Sengel, EdD Date Lauren Keefe Date Chief Administrative Officer City Attorney Approved: 3/24/2026 | 3:42 PM MDT Date Acting Director of Aviation