TORONTO, Nov. 12, 2014 /CNW/ - The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the three- and nine-month periods ended September 30, 2014. The results show a continuation of the improvement in aviation activity experienced in 2013 with passenger volumes growing during the third quarter of 2014 reflecting both the economic strength of the Greater Toronto Region, and the role of Toronto Pearson as Canada's largest airport and North America's second busiest airport in terms of international passengers.
"Toronto Pearson is recognized as one of the world's premier global hub airports with a growing number of international flights connecting through Toronto in 2014," said Howard Eng, CEO, GTAA. "We continue to focus on operational efficiency, improved customer service, and strong financial management with the goal of growing Canada's largest airport responsibly, while delivering considerable economic benefits to the region and the country."
A total of 29.4 million passengers travelled through Toronto Pearson International Airport in the first nine months of 2014, a 6.7 per cent increase compared to the same period in 2013. During the nine-month period ended September 30, 2014, passenger activity in the international sector increased by 7.2 per cent, domestic sector activity increased by 6.6 per cent, and transborder sector activity increased by 6.1 per cent, over the same period in 2013. During the first nine months of 2014, air carriers serving Toronto Pearson increased service (on a net basis) on a total of 66 routes, as compared to the same period in 2013, representing either completely new service or an increased capacity on existing routes.
For the three- and nine-month periods ended September 30, 2014, the GTAA reported total revenues of $308.9 million and $875.5 million, representing improvements of $8.1 million and $33.8 million for the same periods in 2013, respectively. The continued growth in non-aeronautical revenue in the retail, and food and beverage sectors is consistent with the GTAA's commercial redevelopment program. In addition to the over 30 retail and food and beverage locations opened in 2013, 15 new retail locations have opened at Toronto Pearson in the nine-month period ended September 30, 2014. Among the retail openings and partnerships secured in 2014 are an expanded duty-free store spanning 20,000 square feet in Terminal 1, a first full-service CIBC location, Caplansky's Delicatessen and Paramount Fine Foods.
Total operating expenses during the three-month period ended September 30, 2014 were $177.7 million, a $4.8 million increase when compared to the same 2013 period. During the nine-month period ended September 30, 2014, total operating expenses were $544.8 million, a $16.2 million increase when compared to the same 2013 period. This increase during the first nine months of 2014 included higher operating expenses caused by the prolonged winter weather that increased the cost of snow removal and utilities during the first three months of 2014.
Earnings before interest and financing costs were $131.2 million and $330.7 million for the three- and nine-month periods ended September 30, 2014, respectively. After accounting for interest and financing costs, which during the second quarter of 2014 included a one-time charge of $80.7 million related to the GTAA's purchase and cancellation of $318.4 million face value of its outstanding debt, the GTAA recorded net income of $36.8 million for the three months ended September 30, 2014 and net loss of $36.2 million for the nine months ended September 30, 2014. Excluding the one-time charge, the GTAA recorded net income of $36.8 million and $44.5 million for the three- and nine-month periods ended September 30, 2014, respectively, compared to net income of $30.2 million and $21 million in the comparable 2013 periods, respectively.
During the third quarter of 2014, GTAA released an economic impact study by leading research firm Frontier Economics. The study considered direct, indirect and induced economic impacts. The study focused on traditional factors, such as Gross Domestic Product (GDP), jobs, employment income and taxes, as well as the added value to the economy in terms of trade, foreign direct investment and GDP provided by the global connectivity made possible by a hub airport. Based on the model used by Frontier Economics, it was determined that, in 2012, Toronto Pearson facilitates $35.5 billion of Ontario's GDP and 227,000 jobs. A copy of the study can be found on the GTAA's website.The GTAA's September 30, 2014 financial results are discussed in more detail in the GTAA's Condensed Interim Financial Statements and Management's Discussion and Analysis, each for the quarter ended September 30, 2014, and 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.
SOURCE: Greater Toronto Airports Authority
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Contact: GTAA Media Office (416) 776-3709