GTAA reports strong 2017 third quarter results

The Greater Toronto Airports Authority (GTAA) has reported its financial and operating results for the three- and nine-month periods ended Sept. 30, 2017.

Toronto Pearson International Airport is the second busiest airport in North America in terms of international passengers. Andy Cline Photo
Toronto Pearson International Airport is the second busiest airport in North America in terms of international passengers. Andy Cline Photo
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Passenger activity grew at 6.2 per cent or 2.1 million passengers during the first nine months of 2017, as compared to the same period in 2016. This growth reflects increased capacity of aircraft and new routes, the economic strength of the Greater Toronto Region, and the role of Toronto Pearson International Airport as Canada’s largest airport and North America’s second busiest airport in terms of international passengers.

“Toronto Pearson’s continued strong growth in the third quarter of 2017 is a reflection of Ontario’s economic vibrancy and the strong demand for air service across Canada,” said Howard Eng, president and chief executive officer, GTAA. “Toronto Pearson was recently ranked as the fifth most connected airport in the world by industry data specialists OAG. This access to international markets helps to drive our economy, and it is a major factor in businesses’ decisions to headquarter in Ontario.”

A total of 36 million passengers travelled through Toronto Pearson International Airport in the first nine months of 2017; the international sector increased by 1.7 million passengers or 8.0 per cent, and the domestic sector increased by 439,000 passengers or 3.4 per cent over the same period in 2016.

A total of 13.6 million passengers travelled through the airport during the three-month period ended Sept. 30, 2017; the international sector increased by 414,000 passengers or 5.3 per cent, and the domestic sector increased by 166,000 passengers or 3.2 per cent over the same period in 2016.  Both the third quarter and first nine months of 2017 recorded the highest number of domestic and international passengers.

The GTAA recorded net income of $56.3 million for the third quarter and $98.9 million for the first nine months of 2017, compared to $53.7 million and $80.7 million in the comparable 2016 periods, respectively, and it continues towards reducing its deficit.

For the three- and nine-month periods ended Sept. 30, 2017, the GTAA reported total revenues of $368.6 million and $1,029.1 million, representing increases of $17.5 million and $59.7 million from the same periods in 2016, respectively. The continued growth in revenues was a reflection of strong third quarter passenger activity, origin and destination passengers and increased non-aeronautical revenues.

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During the third quarter and first nine months of 2017, the GTAA’s non-aeronautical revenues increased $10.9 million and $23.4 million compared to the same period last year, respectively. The increases in both periods were due to the high number of passengers during 2017; the opening of 23 new retail, restaurant and beverage establishments in the last 12 months; and the inclusion of subsidiary rental revenues since May 2017.

Total expenses reported during the three- and nine-month periods ended Sept. 30, 2017, for the GTAA were $312.3 million and $930.2 million, representing increases of $14.9 million and $41.5 million from the same periods in 2016, respectively. During these periods, the GTAA incurred higher expenditures related to its investments in operational excellence and improving the passenger experience during the 2017 third quarter’s peak season.

Earnings before interest and financing costs and amortization (EBITDA) during the three- and nine-month periods ended Sept. 30, 2017, were $204.0 million and $541.4 million, representing increases of 1.3 per cent and 3.8 per cent, respectively, from the same periods in 2016.

The GTAA’s Sept. 30, 2017, financial results are discussed in more detail in the GTAA’s Financial Statements and Management’s Discussion and Analysis.

The GTAA is the operator of Toronto Pearson International Airport.

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