The Guam International Airport Authority reported that a discounts-based airline incentive program produced about $941,060 in billed incentives for fiscal year 2025, covering 623 incentivized flights and about 131,000 seats, airport deputy executive manager Ricky Hernandez told the legislative oversight committee. Management said average incentive values were roughly $1,500 per incentivized flight, $7.18 per seat and $12.22 per enplanement.

The incentive program was implemented after the Federal Aviation Administration amended guidance in December 2023 to allow certain air-carrier incentive programs. Hernandez said GIAAs board approved a policy in March 2024 to provide discounts (the airport cannot pay airlines directly) based on rates-and-charges metrics such as passengers, loading-bridge usage and takeoff weight. Six airlines participated in the FY25 discounts; GIAA estimated a first-quarter FY26 run rate of about $882,000 for incentivized flights.

Why it matters: GIAAs comptroller, Daphne Shimizu, told senators that airport finances remain sensitive to emplanement trends. The incentive program is intended to increase seat capacity and accelerate recovery from the pandemic and Typhoon Mawar. Committee members pressed GIAA on how its incentives coordinate with the Guam Visitors Bureaus separate marketing-funded incentives; GIAA managers said they meet weekly with GVB to align route-development outreach and to address operational requirements for new services.

What GIAA will change: Hernandez said the program will be adjusted on Jan. 1, 2026 to limit discounts to new markets and new airlines and to suspend incentives for increased frequencies until performance metrics improve. Management framed that change as a response to observed financial data.

Supporting details: GIAA listed a string of recent and seasonal service additions and restorations that increased seat capacity in peak months, including additional Incheon flights from Korean carriers, new or seasonal Busan and Osaka services, a three-times-weekly Philippine Airlines Cebu service planned for Dec. 17, 2025, and several charters.

Quotes: "In that adjustment in the policy, it allowed for providing for a significant increase in existing service for existing airlines," Hernandez said, explaining the FAA policy change. Comptroller Daphne Shimizu noted, "one of the indicators of financial health of the airport is emplanements."

Context and next steps: Senators said they want continued coordination between GIAA and GVB and clearer, documented expectations for any legislature-appropriated airline-incentive funds. GIAA said it will continue weekly operational and route-development meetings with GVB and provide further metrics to the committee as the fiscal year progresses.

Provenance: Topic introduced in testimony by Ricky Hernandez at 00:08:53 and topic discussion closes in the service-and-schedule summary at 00:17:36.