Committee backs two‑year extension of SFO signatory airlines lease, citing COVID uncertainty

The Budget and Finance Committee on April 28 voted to forward to the full Board a proposed modification to the 2011 lease and use agreement between San Francisco International Airport and 39 signatory airlines that would extend the existing term two years to June 30, 2023.

Airport staff said the extension preserves most contract terms while adding administrative updates and language reserving airline and city rights related to potential legal actions connected to the Healthy Airports Ordinance. "Extending the term of the lease provides short term financial certainty for both the airport and the airlines," an airport presenter said, citing severe declines in passenger levels and revenue during the COVID‑19 pandemic.

The Budget Legislative Analyst's office reported projected revenues to the airport under the lease extension of roughly $578 million over the two‑year term and recommended approval. There were no public callers on the item. Chair Matt Haney moved to forward the resolution to the full Board with a positive recommendation; Supervisors Asha Safaei, Gordon Marr and Matt Haney recorded aye votes (three ayes).