GTAA reports 2013 second quarter results

06-Aug-2013

The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the three- and six-month periods ended June 30, 2013. The second quarter of 2013 saw a continuation of the improving total aviation activity results experienced in 2012.

For the six-month period ended June 30, 2013, the GTAA reported total revenues of $540.9 million, a $16.7 million reduction from the same period in 2012. The decrease in revenues in 2013, as compared to 2012, was primarily attributable to the reduction in overall aeronautical fees implemented on January 1, 2013. In 2013 the GTAA reduced overall aeronautical fees by approximately ten percent from 2012 levels when measured as the average air carrier cost per enplaned passenger. The decrease is part of a three-year rate strategy of reducing aeronautical rates in 2013 and holding them at that level in 2014 and 2015. This will make aeronautical rates at Toronto Pearson more competitive and provide air carriers with rate certainty to facilitate their longer-term planning of air services offered at Toronto Pearson. The rate strategy is part of the GTAA's overall strategic objective to position Toronto Pearson as North America's premier gateway airport. . Total operating expenses were $355.6 million, a $15.5 million increase when compared to the first half of 2012. Earnings before interest and financing costs were $185.3 million for the six-month period. After accounting for interest and financing costs, the GTAA recorded net loss of $9.2 million for the six months ended June 30, 2013, compared to net income of $10.5 million in the comparable 2012 period.

For the three months ended June 30, 2013, the GTAA reported total revenues of $273.4 million, a $4.7 million decrease from the same period in 2012 due to the implementation of lower aeronautical fees on January 1, 2013. Total operating expenses were $178 million, a $12.1 million increase when compared to the second quarter of 2012. Earnings before interest and financing costs were $95.3 million for the three-month period compared to $112 million in the second quarter of 2012. After accounting for interest and financing costs, the GTAA recorded net loss of $1.3 million for the quarter ended June 30, 2013, compared to net income of $10.4 million in the comparable 2012 period.

A total of 17.4 million passengers travelled through Toronto Pearson International Airport in the first six months of 2013, a 2.6 per cent increase compared to the same period in 2012. During the six-month period ended June 30, 2013, passenger activity in the domestic and transborder sectors increased by 5.1 per cent and 5.4 per cent, respectively, over the same period in 2012. Passenger activity in the international sector decreased by 2.2 per cent during the first half of 2013, when compared to same period in 2012. For the past several years international passenger growth rates have been higher than both domestic and transborder passenger growth rates. Beginning in late 2012 there has been a reduction in the international growth rate from the high historical levels.