November 6, 2018
TORONTO – The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the three- and nine-month periods ended September 30, 2018. Passenger activity increased 5.4 per cent during the first nine months of 2018 as compared to the same period of 2017. This growth reflects increased aircraft load factor and flights on existing routes, larger aircraft, the economic strength of the Greater Toronto Region, and the role of Toronto Pearson International Airport as Canada’s largest airport and North America’s second busiest airport in terms of international passengers.
During the three-month period ended September 30, 2018, 14.2 million passengers travelled through Toronto Pearson, representing an increase of approximately 587,000 passengers or 4.3 per cent, as compared to the same period in 2017. During the nine-month period ended September 30, 2018, a total of 38.0 million passengers travelled through the Airport, representing an increase of 2.0 million passengers or 5.4 per cent, over the same period in 2017. Passenger activity in the international sector increased by 1.6 million passengers reflecting 6.8 per cent growth and the domestic sector increased by 383,000 passengers reflecting 2.9 per cent growth.
“Toronto Pearson continues to strengthen connections between the Greater Toronto and Hamilton Area and the world, which we have seen reflected in sustained growth in passenger traffic and a significant 6.8 per cent increase in international traffic through the nine months of this year,” said Howard Eng, President and CEO, Greater Toronto Airports Authority. “As we continue on our journey to becoming a top tier international hub supporting the region and Canada, Toronto Pearson is focused on its role as a vital connector of people and businesses, both in the air and on the ground. We continue to work with surrounding municipalities and agencies in the region to plan an integrated transit and passenger centre at Toronto Pearson to help reduce road congestion fostering continued opportunity for economic growth in the critical commercial and residential areas surrounding the Airport.”
The GTAA recorded net income of $73.6 million for the third quarter and $93.9 million for the first nine months of 2018, compared to $56.3 million and $98.9 million in the comparable 2017 periods, respectively. 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 September 30, 2018, the GTAA has reduced its gross debt per enplaned passenger and net debt per enplaned passenger by 4.4 per cent and 1.8 per cent to $260 and $243 when compared to the same period in 2017, respectively.
For the three- and nine-month periods ended September 30, 2018, the GTAA reported total revenues of $396.7 million and $1.1 billion, representing increases of $23.1 million and $61.9 million from the same periods in 2017, respectively. The continued growth in revenues was a reflection of strong passenger growth and increases in commercial revenues from the opening of 32 new retail stores, restaurant, and beverage establishments over the prior 12 months as well as the rental revenues generated by the Airway Centre Inc. Commercial revenues have increased $13.3 million to $135.9 million and $38.3 million to $371.3 million during the three- and nine-month periods ended September 30, 2018, respectively, as compared to the same periods of 2017.
Total expenses reported during the three- and nine-month periods ended September 30, 2018 for the GTAA were $323.1 million and $1.0 billion, representing increases of $5.8 million and $66.9 million from the same periods in 2017, respectively. The Corporation has been increasing investments to support improved passenger and baggage flow in recent years. During the first nine months of 2018 as compared to the same period of 2017, the GTAA incurred higher expenditures related to increased snow removal costs, Airport maintenance and utilities, the inclusion of the Airway Centre Inc.’s costs, regional transit and passenger centre related costs and the continued investments in corporate-wide initiatives in support of the GTAA’s vision to be the best airport in the world. Ground rent and payments-in-lieu of real property taxes expenses have increased $7.1 million. The total increase of these mentioned items was $33.6 million in the first nine months of 2018 as compared to the same period in 2017.
During the first nine months of 2018, the GTAA incurred operating costs to enhance services and improve passenger flow through investments in government agencies of $27.1 million, an increase of $1.7 million or 6.8 per cent over the same period in 2017. These included direct and indirect investments to 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- and nine-month periods ended September 30, 2018 were $216.4 million and $553.6 million, representing increases of 6.1 per cent and 2.2 per cent from the same periods in 2017, respectively. Earnings before interest and financing costs during the three- and nine-month periods ended September 30, 2018 were $148.4 million and $349.3 million, representing increases of 8.5 per cent and 1.3 per cent from the same periods in 2017, respectively.
The GTAA’s September 30, 2018 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, 2018, which are available at www.torontopearson.com and on the Canadian Securities Administrators’ website at www.sedar.com.
The GTAA is the operator of Toronto Pearson International Airport.
Contact: GTAA Media Office (416) 776-3709