Press release

May 8, 2019

Toronto, Canada – The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the three-month period ended March 31, 2019. Passenger activity increased at 2.8 per cent, during the first quarter 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.

“Toronto Pearson continues to see strong demand in the first quarter of this year with 4.0 per cent growth in international travellers. This growth is reflective of Toronto Pearson’s robust and reliable air travel system.” said Howard Eng, President and CEO, Greater Toronto Airports Authority.

In the first three months of 2019, a total of 11.7 million passengers travelled through Toronto Pearson, an increase of approximately 315,000 passengers over the same period in 2018. During the three-month period ended March 31, 2019, passenger activity in the international sector increased by 4.0 per cent growth and the domestic sector increased by 0.3 per cent growth over the same period in 2018.

During the first quarter of 2019, the GTAA recorded net income of $10.9 million, compared to a net loss of $16.9 million in 2018 (excluding one-time interest and financing items, adjusted net income was $10.9 million in 2019 compared to $9.2 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. The GTAA has reduced its gross debt per enplaned passenger by 3.0 per cent to $259 and net debt per enplaned passenger by 1.8 per cent to $242, when compared to 2018.

During the three months ended March 31, 2019, the GTAA reported total revenues of $362.4 million, representing an increase of $13.8 million from the same period in 2018. The continued growth in revenues was a reflection of increases in commercial revenues and passenger growth. During the first quarter of 2019, the GTAA’s commercial revenues increased $9.9 million compared to 2018 to $126.3 million. The increase was due to increased passenger growth, commercial advertising and sponsorship, parking and ground transportation and to rental revenues generated by Airway Centre Inc.

Total operating expenses reported during the first quarter of 2019 for the GTAA were $279.0 million, representing an increase of $19.1 million over the same period in 2018. The increase was primarily related to snow removal costs as a result of harsher winter weather conditions in 2019, increased guard services costs, and a higher depreciable asset base. Operating costs of $8.4 million (including amortization) were incurred by the GTAA in support of government agencies to improve passenger flow, a decrease of $0.7 million or 11.4 per cent over 2018. These included direct and indirect operating costs to enhance services provided by the Canadian Air Transport Security Authority (“CATSA”), U.S. Customs and Border Protection (“USCBP”) and Canada Border Services Agency (“CBSA”).

Earnings before interest and financing costs and amortization (“EBITDA”) during the three-month period ended March 31, 2019 were $154.7 million, representing a decrease of 1.6 per cent over the same period of 2018 related to higher snow removal activity from the harsh 2019 winter and the continued customer service, connection and flow initiatives. The GTAA’s March 31, 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 quarter ended March 31, 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.

Contact: GTAA Media Office (416) 776-3709 Twitter: @TorontoPearson

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