Adjustments to aeronautical rates and airport improvement fee reflect significant financial impacts of COVID-19 and continued related investments
TORONTO, ONTARIO – The downturn in air travel at Toronto Pearson as a result of the COVID-19 pandemic has significantly reduced the Greater Toronto Airports Authority’s (GTAA) revenues, comprising aeronautical and commercial revenues, as well as its airport improvement fee (AIF). The GTAA has already taken significant steps to reduce and prioritize operating and capital expenditures, as well as reducing its workforce by 27 percent. At the same time, the GTAA has invested to meet changing demands for a healthy, touchless airport journey for passengers, and will continue to invest in order to position itself at the forefront of airport hygiene, creating a travel experience that is designed to restore passenger confidence.
In order to continue delivering on passenger requirements for a healthy airport environment, and to support continued strong financial liquidity, the GTAA is announcing the following changes to aeronautical rates and the AIF, effective January 1, 2021:
- Aeronautical rates for commercial aviation will increase by 3%.
- The AIF for departing passengers will increase by $5 to $30.1
- The AIF for connecting passengers will increase by $2 to $6.
- Aeronautical rates for all business and general aviation aircraft 19,000kg or less will increase to $575 per arrival.2
Commercial aeronautical rates and the AIF have not increased at Toronto Pearson for 13 and 11 years, respectively during a period of strong growth at the airport.
“The impact of the pandemic on Toronto Pearson’s business and Canada’s aviation sector has been nothing short of devastating,” said Deborah Flint, President and CEO, GTAA. “These changes to aeronautical rates and the AIF follow more than a decade during which there were no increases to commercial aeronautical rates or the AIF at Toronto Pearson. Today’s announcement will position the GTAA fiscally for continued investments in healthy travel and industry recovery.”
This news release contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires the GTAA to make assumptions and is subject to inherent risks and uncertainties. These statements reflect GTAA management’s current beliefs and are based on information currently available to GTAA management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that the GTAA’s assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in the GTAA’s securities regulatory filings, including its most recent Annual Information Form and Management’s Discussion and Analysis, which can be found on SEDAR at www.sedar.com.
1 Airlines who have not signed AIF agreements with the GTAA must pay the AIF at the departing passenger rate on a per-seat basis.
2 All business and general aviation aircraft in excess of 19,000kg will be charged in accordance with the aeronautical rates for commercial aviation.
About the Greater Toronto Airports Authority
The Greater Toronto Airports Authority (GTAA) is the operator of Toronto Pearson International Airport. Toronto Pearson served more than 50 million passengers in 2019, making it Canada's busiest airport.
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