Airport rate study recommends fee hikes across the board
Stillwater City Council adopts higher landing, hangar and parking rates in the airport's first fee overhaul in years
The Stillwater City Council received a presentation July 20, 2026 on a new rates and charges study — the airport's first in five to 10 years, according to Airport Director Kellie Reed — recommending increases to landing fees, hangar rents, terminal rates and parking charges at Stillwater Regional Airport starting in fiscal year 2027.
The council adopted resolutions formally putting the study's recommended rates and charges into effect.
Federal Aviation Administration rules require airports that accept federal grants to keep a fee structure that makes them as financially self-sustaining as possible, Reed and consultant Paula Jordan-Foster told the council. Reed said the gap in recent rate studies prompted the city to hire aviation consulting firm KSA last year to review the airport's costs and compare its rates against peer and competitive airports.
"We're grateful for KSA's support in this process and helping us truly look at the cost to operate the airport and break those down into fair cost centers," Reed said.
KSA's report found Stillwater Regional Airport's rates are below peer averages in nearly every category, including its cost per enplaned passenger of $2.95, compared with a peer average of $4.36. The study recommended increases to nine categories of fees, along with several new charges the airport had not collected before.
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What's changing
Under the proposal, the signatory landing fee rises from 95 cents to $1.50 per 1,000 pounds of landed weight, with a 25 percent premium for non-signatory operators and no charge for aircraft weighing 5,000 pounds or less. Terminal rent increases from $21.25 to $25 per square foot, paired with a new 75-cent-per-passenger fee to help cover the terminal's public areas.
T-hangar rents rise to $300 and $325 a month depending on hangar size, up from a flat $250, and tie-down fees increase to $15 overnight or $150 a month. The study also recommends a new $5-per-day parking fee at the two lots closest to the terminal, while the airport's more remote lots remain free.
| Fee | Current rate | Full cost-recovery rate | Market average | Proposed FY2027 rate | Projected revenue impact |
|---|---|---|---|---|---|
| Landing fee (signatory) | $0.95 / 1,000 lbs | $29.52 / 1,000 lbs | $1.46 / 1,000 lbs | $1.50 / 1,000 lbs | $32,713 |
| Terminal rent | $21.25 / sq. ft. | $213.07 / sq. ft. | $25.30 / sq. ft. | $25.00 / sq. ft. | $26,303 |
| Enplaned passenger fee | None | $15.89 / passenger | $0.45–$1.05 / passenger | $0.75 / passenger | $29,611 |
| Customer facility charge (rental cars) | None | N/A | $3.00–$10.00 | $3.00 / transaction day | $127,683 |
| T-Hangar 1 (12,470 sq. ft.) | $250 / month | N/A | $125–$475 / month | $300 / month | $5,400 |
| T-Hangar 2 (13,750 sq. ft.) | $250 / month | N/A | $125–$475 / month | $325 / month | $8,100 |
| Port-a-Port | $170 / month | N/A | N/A | $200 / month | $1,440 |
| Aircraft parking (tie-down) | $10 / day, $50 / month | N/A | $86.61 / month | $15 / day, $150 / month | $20,917 |
| Aeronautical ground rent | $0.24 / sq. ft. | $0.15–$0.48 | $0.29 / sq. ft. | $0.30 / sq. ft. | $28,635 |
| Nonaeronautical ground rent | $0.12 / sq. ft. | N/A | $0.39 / sq. ft. (improved) | $0.29 / sq. ft. | $525,816 |
| Fuel flowage fee | $0.20 / gallon | N/A | $0.05–$0.20 / gallon | $0.206 / gallon | $3,900 |
| Administrative fee on fuel | None | N/A | N/A | 3% of purchase | $90,000 |
| Annual fees (based aircraft, wait list, permits) | None | N/A | Various | Various | $17,800 |
| Total projected revenue impact | $918,317 | ||||
Jordan-Foster said the recommended rates were built from a market and competitive analysis of similar airports, not just a straight cost-recovery calculation.
"If we took the operating expenses today plus the capital expenditures and then applied the maximum gross landed weight of what is landing at Stillwater, your landing fee would be $29.52 per 1,000 pounds. And that is not feasible by any means," Jordan-Foster said. "So what we want to do with that is to show some increases over time, nothing drastic to begin with, but start trying to move the needle."
Mayor Will Joyce asked whether the projections accounted for a possible drop in airport use if fees rise too much. Jordan-Foster said the study did not model that directly but relied on the market comparison to keep rates competitive with nearby airports.
Combined, the new and increased fees are projected to generate $918,317 in additional revenue for fiscal year 2027, according to the KSA report. Of that total, $524,245 comes from reclassifying an existing General Fund transfer as nonaeronautical rent rather than new money, while $394,072 represents new revenue to the airport.
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City Manager Brady Moore told the council some of the new parking revenue could eventually help fund upgrades airport users have been asking for.
"We mentioned at a previous city council meeting the support we've heard for creating revenue so we can do covered parking and premium parking options that customers have been asking for at the airport," Moore said.
The study also recommends the airport revisit its rates annually, with future increases tied to inflation or a flat 3 percent adjustment.
The terminal rent recommendation follows the same logic as the landing fee: fully recovering the terminal's costs would require a rate of $213.07 per square foot, far above the $25 proposed. Jordan-Foster said that gap is typical for a newly built terminal.
"It's pretty common, especially in a new terminal, to be upside down like that," she said. "But what you want to do is create a rate that is marketable to the airline and to the other tenants of the terminal."
Reed said the new terminal is scheduled for a soft opening Aug. 12 and a public grand opening Aug. 19. Reed also told the council the airport plans to roll out paid parking at the terminal's redeveloped lot in early 2027, using a partnership with Park Mobile, though staff still need to resolve enforcement staffing before that begins.
📺 Watch the Presentation to City Council
Members Discussion