The FINANCIAL — The Greater Toronto Airports Authority (“GTAA”) on March 21 reported its financial and operating results for the fiscal year ended December 31, 2017.
Passenger activity and net income increased substantially at 6.2 per cent and 31.2 per cent, respectively, during 2017 as compared to 2016. This growth reflects increased capacity of aircraft and new international 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 is quickly emerging on the world stage as a top-tier global hub airport,” said Howard Eng, President and CEO, GTAA. “Our investment in passenger and baggage flows, and customer service are delivering positive results. Nowhere is this more evident than in our strong 8.0 per cent growth of international passengers from 27.4 million in 2016 to 29.6 million in 2017, driving overall passenger growth of 6.2 per cent. For 2017, Toronto Pearson was recognized by Airports Council International as the number one airport in North America for passenger satisfaction for airports that service greater than 40 million passengers annually based on achieving an Airport Service Quality (“ASQ”) score of 4.31. As we look ahead to 2018 and beyond, buoyant air travel demand in the region will only increase our already significant contribution to Ontario’s and Canada’s GDP attracting global businesses and tourism. Going forward, the GTAA will continue to work with industry, government and the communities it serves to maximize the benefits that aviation brings to the region, the province and the country at large.”
A total of 47.1 million passengers travelled through Toronto Pearson International Airport during 2017, an increase of 2.8 million passengers over 2016. Additional frequencies on existing routes, upgauging of average aircraft size on existing frequencies, and the addition of new routes by existing air carriers have driven passenger growth in 2017. Toronto Pearson has 63 air carriers providing flights to 184 international cities, up from 176 in 2016. In addition, its cargo tonnage transported increased from 472,300 metric tonnes in 2016 to 538,900 metric tonnes in 2017, an increase of 14.1 per cent, according to GTAA.
The GTAA recorded net income of $112.1 million during 2017 compared to $85.5 million in 2016. The GTAA has reduced its gross debt per enplaned passenger and net debt per enplaned passenger by 4.6 per cent and 3.0 per cent to $268 and $248 over 2016, respectively.
During 2017, the GTAA reported total revenues of $1.4 billion, representing an increase of $84.6 million over 2016. The continued growth in revenues was a reflection of strong annual passenger growth and increases in non-aeronautical revenues (or commercial revenues). During 2017, the GTAA’s non-aeronautical revenues increased $38 million compared to 2016 to $450.5 million. The increase was due to the high passenger growth, the opening of 28 new retail stores, restaurant, and beverage establishments and to the revenues generated by the Airway Centre Inc.
Total expenses reported during 2017 for the GTAA were $1.3 billion, representing an increase of $58 million over 2016. Ground rent and payments-in-lieu of real property taxes (“PILT”) together comprised approximately 21 per cent of the GTAA’s operating expenses or 15 per cent of total expenses in 2017. During 2017, the GTAA incurred higher expenditures related to the inclusion of the Airway Centre Inc.’s costs and the continued investments in corporate-wide initiatives in support of the GTAA’s vision to be the best airport in the world. The Corporation has been rapidly increasing investments to support improved passenger and baggage flow in recent years, with an increase of approximately $16.8 million in 2017 as compared to 2016.
Earnings before interest and financing costs and amortization (“EBITDA”) during 2017 were $703.8 million, representing an increase of 4.2 per cent over 2016. Earnings before interest and financing costs during 2017 were $439.2 million, representing an increase of 3.0 per cent over 2016.
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