GTAA Reports 2012 Results
27-Mar-2013 The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the fiscal year ending December 31, 2012. These results show a continuation of the strong operating and financial outcomes experienced in 2011. Passenger volume at Toronto Pearson International Airport (the "Airport") increased by 4.4 per cent during 2012 when compared to 2011. Continued strong traffic growth, improvements in generating non-aeronautical revenues and cost control resulted in an improvement in financial performance when compared to 2011.
For the twelve months ended December 31, 2012, the GTAA reported total revenues of $1.1 billion. Total operating expenses were $709.4 million, including $130.5 million in ground rent paid to the federal government. Earnings before interest and financing costs were $428.2 million. After accounting for interest and financing costs, the GTAA recorded net income of $14.3 million, compared to net loss of $17.1 million in 2011.
During the 3-month period ended December 31, 2012, the GTAA recorded a net loss of $30.2 million, compared to a net loss of $16.2 million in 2011. Due to seasonal patterns in air traffic and operating expenses, expenses typically exceed revenues in the fourth quarter of each year.
A total of 34.9 million passengers traveled through the Airport in 2012, a 4.4 per cent increase compared to 2011. Passenger activity in the domestic traffic segment increased 4.3 per cent when compared to 2011. Transborder passenger activity increased 5.4 per cent in 2012 when compared to 2011. International passenger activity also increased over the prior year, growing by 3.7 per cent in 2012. During 2012, when compared to 2011, air carriers serving Toronto Pearson increased service (on a net basis) on a total of 45 routes, representing either completely new service or an increase in capacity on existing routes.
To fund capital expenditures and to repay maturing debt, the GTAA issued $400 million in medium term notes during 2012. Debt repayments totaled $975.0 million during the year, some of which were partially prefunded in 2011.
On November 26, 2012, the GTAA announced its aeronautical fees for 2013. The new fees became effective January 1, 2013, (February 1, 2013 in the case of the apron fee). The combined impact of the new aeronautical fees was a reduction of approximately 10 per cent in overall 2013 aeronautical fees compared to overall 2012 aeronautical fees, when measured as the average air carrier cost per enplaned passenger (the amount that air carriers pay to the GTAA expressed as a per passenger rate). Effective January 1, 2013, the landing fees for cargo aircraft were reduced by 8.3%.
The GTAA's continuing commitment to increase non-aeronautical revenues by providing amenities valued by the traveling public and managing operating expenses has contributed to the rate decreases that have been provided to air carriers in recent years and for 2013.
The 2012 financial results of the GTAA are discussed in more detail in the Financial Statements of the GTAA for the years ended December 31, 2012 and 2011 and Management's Discussion and Analysis for the year ended December 31, 2012, 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, the largest airport in Canada, the second largest airport in North America in terms of international traffic (international and transborder) and one of the largest airports in North America in terms of total passenger and air cargo traffic.