The FINANCIAL — The Greater Toronto Airports Authority (the “GTAA”) on May 5 reported its financial and operating results for the three-month period ended March 31, 2015.
The results show a continuation of the improvement in aviation activity experienced in 2014. Passenger volumes grew by 7.0 per cent during the first quarter of 2015 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, according to the Greater Toronto Airports Authority.
“This marks the 21st consecutive quarter of year-over-year growth in passenger volumes at Toronto Pearson,” said Howard Eng, President and CEO of the GTAA. “Our focus on passenger experience and continuous improvement to airport processes has never been more essential if we are going to support Toronto Pearson’s continued growth as a major global hub airport and an economic catalyst for the country. We remain committed to offering airlines an attractive hub through which to grow their businesses, and to offering passengers the amenities and services that they demand.”
A total of 9.4 million passengers travelled through Toronto Pearson International Airport in the first three months of 2015, a 7.0 per cent increase compared to the same period in 2014. During the three-month period ended March 31, 2015, passenger activity in the international sector increased by 9.3 per cent, transborder sector by 7.3 per cent, and domestic sector by 4.6 per cent, over the same period in 2014. During the first three months of 2015, when compared to the same period in 2014, air carriers serving Toronto Pearson increased service (on a net basis) on a total of 87 routes, representing either completely new service or an increased capacity on existing routes. The international sector saw increased capacity on existing routes to Cuba, Shanghai and Portugal and the opening of new routes to Dublin, Milan, Rio de Janeiro and other international markets.
For the three months ended March 31, 2015, the GTAA reported total revenues of $285.3 million, a $6.6 million improvement from the same period in 2014. The continued growth in non-aeronautical revenue in the retail and food and beverage sectors reflects the success of the GTAA’s commercial redevelopment program. In addition to the 19 retail and food and beverage locations opened in 2014, 6 new retail and food and beverage locations have opened at Toronto Pearson in the first quarter of 2015.
Total operating expenses during the first quarter of 2015 were $195.9 million, a $7.5 million increase when compared to the first quarter of 2014. Earnings before interest and financing costs were $89.4 million for the three-month period ended March 31, 2015. After accounting for interest and financing costs, the GTAA recorded net loss of $1.2 million for the first quarter ended March 31, 2015, compared to net loss of $6.4 million in the comparable 2014 period.