November 12, 2019
TORONTO, CANADA - The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the three- and nine-month periods ended September 30, 2019. Passenger activity increased at 1.8 per cent during the first nine 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.
“While the global aviation industry continues to deal with the impact of the Boeing 737 MAX grounding, which has impacted passenger numbers at airports internationally, including here at home, Toronto Pearson continues to experience passenger growth, albeit at a lower rate,” said Howard Eng, President and CEO, Greater Toronto Airports Authority. “Toronto Pearson remains the ninth busiest airport for total passenger traffic and the second busiest hub in North America for international traffic.”
During the three-month period ended September 30, 2019, 14.2 million passengers travelled through Toronto Pearson, representing a decrease of 0.2 per cent, as compared to the same period in 2018. During the nine-month period ended September 30, 2019, a total of 38.6 million passengers travelled through the Airport, representing an increase of 600,000 passengers or 1.8 per cent, as compared to the same period in 2018. Passenger activity in the international sector increased by approximately 500,000 passengers reflecting 2.3 per cent growth and the domestic sector increased by approximately 100,000 passengers reflecting 1.0 per cent growth, over the same period in 2018.
The GTAA recorded net income of $67.7 million for the third quarter and $115.5 million for the first nine months of 2019, compared to $73.6 million and $93.9 million in the comparable 2018 periods, respectively. Excluding one-time interest and financing items incurred in 2018, adjusted net income for the first nine months of 2019 was $115.5 million compared to $120.0 million for the same period in 2018. Net income was negatively impacted in 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 September 30, 2019, the GTAA has reduced its gross debt per enplaned passenger and net debt per enplaned passenger by 1.9 per cent and 2.1 per cent to $255 and $238 when compared to the same period in 2018, respectively.
For the three- and nine-month periods ended September 30, 2019, the GTAA reported total revenues of $403.1 million and $1.1 billion, representing increases of $6.4 million and $32.1 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 nine-month periods ended September 30, 2019 for the GTAA were $262.4 million and $802.1 million, representing increases of $14.1 million and $47.1 million from the same periods in 2018, respectively. The increases were primarily related to increased costs related to additional investment properties acquired in the fall of 2018, higher snow removal costs as a result of harsher winter weather conditions in 2019, increased staffing to manage passenger flow, and a higher depreciable asset base. During the three- and nine-months ended September 30, 2019, operating costs (including amortization) of $8.3 million and $28.9 million were incurred by the GTAA in support of government agencies to improve passenger flow, an increase of 7.4 per cent and 12.2 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 nine-month periods ended September 30, 2019 were $213.9 million and $551.3 million, representing decreases of 1.2 per cent and 0.4 per cent from the same periods in 2018, respectively.
The GTAA’s September 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 nine-month periods ended September 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.
GTAA Media Office (416) 776-3709