GTAA Reports 2017 Second Quarter Results

GTAA Reports 2017 Second Quarter Results

GTAA Reports 2017 Second Quarter Results

The FINANCIAL -- The Greater Toronto Airports Authority on August 9 reported its financial and operating results for the three- and six-month periods ended June 30, 2017.

Passenger activity and net income increased substantially at 7.4 per cent and 58.4 per cent, respectively, during the first half of 2017 as compared to the same period of 2016. This growth reflects increased frequencies on existing routes and aircraft capacity, 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, according to the Greater Toronto Airports Authority.

"The strong passenger traffic growth at the airport over the first half of the year cements Toronto Pearson's emergence on the world stage as a premier global hub," said Howard Eng, President and CEO, GTAA. "Ensuring the efficient movement of people and goods to, from and around the airport is a prerequisite for long-term growth, and for this reason we continue to work with local, provincial and federal governments to make our vision for a regional transit centre a reality."

In 2017, Toronto Pearson experienced the strongest ever first half year-over-year increase in the number of international passengers. During the six-month period ended June 30, 2017, a total of 22.4 million passengers travelled through Toronto Pearson. Passenger activity in the international sector increased by 1.3 million passengers reflecting 9.6 per cent growth and the domestic sector increased by 274,000 passengers reflecting 3.6 per cent growth, over the same period in 2016. During the three-month period ended June 30, 2017, 11.7 million passengers travelled through the Airport, representing an increase of 793,000 passengers or 7.3 per cent, as compared to the same period in 2016. In addition, aircraft movements only increased by 0.7 per cent to 114,900 and 1.7 per cent to 224,200 for the three- and six-month periods ended June 30, 2017, respectively, when compared to the same periods in 2016, due to the airlines having upgraded their fleet to larger aircraft.

The GTAA recorded net income of $35.0 million for the second quarter and $42.7 million for the first half of 2017, compared to $23.0 million and $26.9 million in the comparable 2016 periods, respectively.

For the three- and six-month periods ended June 30, 2017, the GTAA reported total revenues of $340.4 million and $660.6 million, representing increases of $25.9 million and $42.4 million from the same periods in 2016, respectively. The continued growth in revenues was a reflection of continued passenger growth and increases in non-aeronautical revenues.

Total operating expenses reported during the three- and six-month periods ended June 30, 2017 for the GTAA were $222.9 million and $452.5 million, representing increases of $16.0 million and $32.2 million from the same periods in 2016, respectively. During the first six months of 2017, the GTAA continued to invest in initiatives to improve the passenger experience.

Earnings before interest and financing costs during the three- and six-month periods ended June 30, 2017 were $117.5 million and $208.1 million, representing increases of 9.3 per cent and 5.2 per cent from the same periods in 2016, respectively.