TORONTO, Nov. 10 /CNW/ - The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the 9-month period ending September 30, 2009. A total of 23.3 million passengers were processed at Toronto Pearson International Airport in the first nine months of 2009, a 6.9 per cent decrease compared to the same 2008 period. This decline in passenger traffic, which began in the fourth quarter of 2008, is a result of the current economic downturn which has reduced demand for air travel worldwide.
For the nine months ended September 30, 2009 the GTAA reported total revenues of $842.6 million compared to $896.4 million in the same 2008 period. Total operating expenses were $368.1 million, including $105.5 million in ground rent paid to the federal government, in the same period. This represents a decrease of $42.9 million, or 10.4 per cent, from total operating expenses of $411.0 incurred in the first nine months of 2008. After accounting for debt service and amortization, the GTAA recorded revenues over expenses of $21.3 million for the 2009 period, an improvement of $15.8 million compared to revenues over expenses of $5.5 million in the same period in 2008.
For the three-month period ended September 30, 2009, revenue over expenses was $29.7 million compared to revenues over expenses of $25.1 million for the same period in 2008. Total revenues for the period were $297.0 million, an $18.4 million decrease over the third quarter of 2008. Total operating expenses, including ground rent, were $116.0 million in the third quarter of 2009, compared to $130.1 million in the third quarter of 2008, a $14.1 million decrease.
The financial and operating results recorded in the first nine months of 2009 are reflective of the implementation of the GTAA's current five-year strategic plan, which is intended to further develop revenue, efficiency and customer service initiatives, and the implementation of a four point plan in February 2009 to combat the effects of the current economic slowdown on the GTAA's business. The GTAA continues to work aggressively to drive down expenses, and, where possible, increase non-aeronautical revenues and aeronautical activity.
On October 1, 2009 the GTAA announced new aeronautical fees. Effective January 1, 2010 both landing fees and general terminal charges will be reduced by 10% from 2009 levels. This represents the third year in a row that the GTAA has reduced aeronautical rates.
The GTAA sets its aeronautical rates annually on a modified cash basis. Accordingly, certain non-cash items such as amortization are not included when calculating aeronautical rates. On this modified cash basis the GTAA continues to generate revenues and maintain adequate liquidity to fund its operating and capital activities.
The financial results of the GTAA for the first nine months of 2009 are discussed in more detail in the Financial Statements of the GTAA for the nine months ended September 30, 2009 and Management's Discussion and Analysis which are available at www.gtaa.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 and one of the largest airports in North America in terms of passenger and air cargo traffic.
SOURCE Greater Toronto Airports Authority
For further information: For further information: GTAA Media Office, (416) 776-3709