August 8, 2019
TORONTO, CANADA - The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the three- and six-month periods ended June 30, 2019. Passenger activity increased at 3.0 per cent during the first six months of 2019 as compared to the same period of 2018. This growth was due to increased aircraft load factor, aircraft size and flights on existing routes, and is reflective of the economic strength of the Greater Toronto Region, and the role of Toronto - Lester B. Pearson International Airport (“Toronto Pearson”) as Canada’s largest airport and North America’s second busiest airport in terms of international passengers.
“With service to 163 international destinations, we were recently named the most international airport in North America by OAG Aviation Worldwide Limited, and total traffic continued to grow over the first half of the year by 3.0 per cent to a record-setting 24.5 million passengers,” said Howard Eng, President and CEO, Greater Toronto Airports Authority. “In addition to connecting to the world, we also remain focused on strengthening our communities with integrated transit solutions, environmental initiatives and programs to build social well-being. We are not just here to provide connections, but also to help advance economic growth, sustainable development and access to opportunity, and our passengers and the region can count on Pearson to do just that.”
During the three-month period ended June 30, 2019, 12.8 million passengers travelled through Toronto Pearson, representing an increase of approximately 400,000 passengers or 3.2 per cent, as compared to the same period in 2018. During the six-month period ended June 30, 2019, a total of 24.5 million passengers travelled through the Airport, representing an increase of 800,000 passengers or 3.0 per cent, as compared to the same period in 2018. Passenger activity in the international sector increased by approximately 600,000 passengers reflecting 3.9 per cent growth and the domestic sector increased by approximately 200,000 passengers reflecting 1.3 per cent growth, over the same period in 2018.
The GTAA recorded net income of $36.9 million for the second quarter and $47.8 million for the first half of 2019, compared to $37.2 million and $20.4 million in the comparable 2018 periods, respectively (excluding one-time interest and financing items incurred in the first quarter of 2018, adjusted net income was $47.8 million in 2019 compared to $46.5 million in 2018). Net income was negatively impacted in the first quarter of 2018 by the early retirement of debt charge of $28.7 million from the early redemption of Series 2009-1 Medium Term Notes. As at June 30, 2019, the GTAA has reduced its gross debt per enplaned passenger and net debt per enplaned passenger by (0.4) per cent and (0.8) per cent to $259 and $240 when compared to the same period in 2018, respectively.
For the three- and six-month periods ended June 30, 2019, the GTAA reported total revenues of $370.9 million and $733.3 million, representing increases of $11.8 million and $25.7 million from the same periods in 2018, respectively. The continued growth in revenues was a reflection of increases in commercial revenues and passenger growth. The increase in commercial revenues was due to increased passenger growth, commercial advertising and sponsorship, parking and ground transportation and to rental revenues generated by the Airway Centre Inc.
Total operating expenses reported during the three- and six-month periods ended June 30, 2019 for the GTAA were $260.8 million and $539.7 million, representing increases of $14.0 million and $33.1 million from the same periods in 2018 respectively. The increases were primarily related to snow removal costs as a result of harsher winter weather conditions in 2019, increased staffing to manage passenger flow, increased costs related to additional investment properties acquired in the fall of 2018 and a higher depreciable asset base. During the three- and six-months ended June 30, 2019, operating costs (including amortization) of $12.7 million and $20.8 million were incurred by the GTAA in support of government agencies to improve passenger flow, an increase of 39.2 per cent and 12.1 per cent, respectively, over the comparable periods of 2018. These included direct and indirect operating costs to enhance services provided by the Canadian Air Transport Security Authority, U.S. Customs and Border Protection and Canada Border Services Agency.
Earnings before interest and financing costs and amortization (“EBITDA”) during the three- and six-months ended June 30, 2019 were $182.7 million and $337.4 million, representing increases of 1.4 per cent and 0.1 per cent from the same periods in 2018, respectively.
The GTAA’s June 30, 2019 financial results are discussed in more detail in the GTAA’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis, each for the three- and six-months ended June 30, 2019, which are available at www.torontopearson.com and on SEDAR at www.sedar.com.
The GTAA is the operator of Toronto Pearson International Airport.