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Last updated on April 20, 2014 at 8:28 EDT

GTAA reports 2013 second quarter results

August 6, 2013

TORONTO, Aug. 6, 2013 /CNW/ – 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.

The GTAA’s June 30, 2013 financial results are discussed in more detail
in the GTAA’s Financial Statements and Management’s Discussion and
Analysis, each for the period ended June 30, 2013, which are available
at www.torontopearson.com and on the Canadian Securities Administrators’ website at www.sedar.com.

This news release contains certain forward-looking information,
including statements regarding: a three-year rate strategy of reducing
aeronautical rates in 2013 and holding them at that level in 2014 and
2015 to make aeronautical rates at Toronto Pearson more competitive and
to provide air carriers with rate certainty to facilitate their
longer-term planning of air service at Toronto Pearson; and the GTAA’s
overall strategic objective to position Toronto Pearson as North
America’s premier gateway airport.  This forward-looking information is
based on a variety of assumptions and is subject to risks and
uncertainties.  Please refer to the section titled “Caution Regarding
Forward-Looking Information” contained in the GTAA’s Management’s
Discussion and Analysis for the period ended June 30, 2013 for a
discussion of such risks and uncertainties and the factors and
assumptions related to the forward-looking information.

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. 

SOURCE Greater Toronto Airports Authority


Source: PR Newswire