Press release

TORONTO, CANADA - The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the three- and nine-months ended September 30, 2022. Passenger activity significantly increased by 6.5 million or 135.1 per cent to 11.2 million and by 18.9 million or 273.7 per cent to 25.7 million during the third quarter of 2022 and the first nine months of 2022, respectively, when compared to the same periods of 2021. Passenger activity increased given the easing of pandemic-related travel restrictions and pent-up travel demand compared to the same periods of 2021.

“Over the course of the summer, Toronto Pearson went from one of the world’s most shut down major airports to one of its busiest,” said Deborah Flint, President and CEO, GTAA. "The delays and wait times experienced by passengers this summer have decreased dramatically, and we have seen better flow through the airport thanks to increased staffing by carriers and our partners in government, and a host of innovations aimed at smoothing processes."

"I want passengers to know how much we value and appreciate their patience and loyalty. I commend our government and airline partners for the actions that have strengthened their operations and started to add more resiliency. Airport employees and partners have been working relentlessly on passengers' behalf to improve their experience at Toronto Pearson. Airline delays and cancellations have improved and we've made significant progress by giving passengers more tools like launching our live dashboard, which allows passengers to check wait times for check-in counters, security screening, and customs and baggage," continued Ms. Flint. "Our sights are now set squarely on working with partners and governments on both sides of the border to return resources at Pearson to meet demand today and in the future, particularly December holiday peak travel and Summer 2023.”

Key Financial and Passenger Information

 

For the periods ended September 30

 

Three months

Nine months

(millions)

2022

2021

Change1

2022

2021

Change1

Passenger Activity

 

 

 

%

 

 

 

%

Domestic

4.7

2.9

1.8

61.0

10.6

4.1

6.5

156.8

International

6.5

1.8

4.7

250.6

15.1

2.7

12.4

448.1

Total

11.2

4.7

6.5

135.1

25.7

6.8

18.9

273.7

($ millions)

 

 

 

 

 

 

 

 

Total Revenues

421.9

245.7

176.2

71.7

1,088.4

552.0

536.4

97.2

Total operating expenses (excluding amortization)

194.1

125.0

69.1

46.9

522.8

351.4

171.4

48.7

EBITDA2

227.8

120.7

107.1

88.7

565.6

200.6

365.0

182.0

Net Income (Loss)

73.7

(57.7)

131.4

227.8

80.6

(302.8)

383.4

126.6

Free Cash Flow 2

177.4

49.1

128.3

261.3

288.0

(99.9)

387.9

388.3

1 % Change" and "%" are based on detailed actual numbers (not rounded as presented). 
2 Please refer to Non-GAAP Financial Measures at the end of this document for further details.

Passenger activity through Toronto Pearson and resultant revenues increased during the third quarter of 2022 and the first nine months of 2022, when compared to the same periods of 2021, due to the easing of the pandemic and travel restrictions, and pent-up travel demand, although the number of passenger and flight activity remains lower, when compared to the same periods in 2019.

Toronto Pearson generated net income for the second consecutive quarter since the second quarter of 2020 (the first full quarter of COVID-19).

Earnings before interest and financing costs and amortization (“EBITDA”) increased significantly during the third quarter of 2022 and the first nine months of 2022, when compared to the same periods of 2021, due to a large increase in operating activity and revenues and the prudent management of operating costs. Net income during the third quarter of 2022 and the first nine months of 2022 increased by $131.4 million to $73.7 million and $383.4 million to $80.6 million, respectively, when compared to the net losses of the same periods of 2021, due to the same reasons above.

Free cash flow increased during the third quarter of 2022 and the first nine months of 2022 by $128.3 million to $177.4 million and by $387.9 million to $288.0 million, respectively, when compared to the same periods of 2021, primarily driven by the significant increase in revenues over the increase in costs.

As a result of COVID-19, potential new variants and changing travel restrictions in place in Canada and around the world, together with the staffing and other challenges faced by the global aviation industry, there remains limited accurate long-term visibility on the future of travel demand. The GTAA cannot accurately predict the timing of a full recovery, or predict further growth. Management continues to analyze the extent and recovery plans of the financial impact of the COVID-19 pandemic, which has diminished. While the full duration and scope of the COVID-19 pandemic cannot be known at this time, in the long-term the GTAA believes that full recovery will be achieved, and the pandemic will not have a material impact on the long-term financial sustainability of the Airport.

The GTAA’s September 30, 2022 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-months ended September 30, 2022, which are available at www.torontopearson.com and on SEDAR at www.sedar.com.

Caution Regarding Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities laws. This forward-looking information is based on a variety of assumptions and is subject to 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.

NON-GAAP FINANCIAL MEASURES

Throughout this news release, there are references to the following performance measure which in Management’s view is valuable in assessing the economic performance of the GTAA. While this financial measure is not defined by the International Accounting Standards Board (“IFRS”), and is referred to as non-GAAP measure which may not have any standardized meaning, it is a common benchmark in the industry, and is used by the GTAA in assessing its operating results, including operating profitability, cash flow and investment program.

EBITDA

EBITDA is earnings before interest and financing costs and amortization. EBITDA is a commonly used measure of a company's operating performance. This is used to evaluate the GTAA’s performance without having to factor in financing and accounting decisions.

Free Cash Flow

Free Cash Flow (“FCF”) is cash flow from operating activities per the consolidated statements of cash flows less capital expenditures (property and equipment, and investment property) and interest and financing costs paid, net of interest income (excluding non-cash items). FCF is used to assess funds available for debt reduction or future investments within Toronto Pearson.

About the Greater Toronto Airports Authority

The GTAA is the operator of Toronto Pearson International Airport.

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

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