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The Greater Toronto Airports Authority (the “GTAA”) has reported its financial and operating results for the three- and nine-month periods ended Sept. 30, 2013. The third quarter of 2013 saw a continuation of the improvement of aviation activity results experienced in 2012. Passenger volumes continued to grow during the third quarter of 2013 reflecting both the economic strength of the Greater Toronto Region, and the role of Toronto Pearson as Canada’s largest gateway airport.
For the nine-month period ended Sept. 30, 2013, the GTAA reported total revenues of $841.7 million, a $26.3 million reduction from the same period in 2012. The decrease in revenues in 2013, as compared to 2012, was primarily attributable to the reduction in overall aeronautical fees implemented on Jan. 1, 2013. In 2013, the GTAA reduced overall aeronautical fees by approximately ten percent from 2012 levels when measured as the average air carrier cost per enplaned passenger. Consistent with an overall strategy that began in 2008 to lower air carrier rates, this 2013 fee reduction was announced as a three-year rate freeze, holding aeronautical rates constant from 2013 through 2015. This will make aeronautical rates at Toronto Pearson more competitive and provides air carriers with rate certainty to facilitate their longer-term planning of air services offered at Toronto Pearson. The rate strategy is part of the GTAA’s overall strategic objective to position Toronto Pearson as North America’s premier gateway airport. To further support this strategic objective, the GTAA announced on Oct. 18, 2013, that it has entered a long term commercial agreement with Air Canada, which features fixed aeronautical fees for Air Canada. The agreement also provides certain commitments by the GTAA and Air Canada to deliver continued improvements to customer service, and provides Air Canada incentives to offer Canadians greater flight frequencies to existing markets and open up access to more global destinations.
Total operating expenses were $528.6 million, a $14.4 million increase when compared to the first nine months of 2012. Earnings before interest and financing costs were $313.2 million for the nine-month period. After accounting for interest and financing costs, the GTAA recorded net income of $21 million for the nine months ended September 30, 2013, compared to net income of $44.4 million in the comparable 2012 period.
For the three months ended Sept. 30, 2013, the GTAA reported total revenues of $300.8 million, a $9.6 million decrease from the same period in 2012 due to the implementation of lower aeronautical fees on Jan. 1, 2013. Total operating expenses were $173 million, a $1.1 million decrease when compared to the third quarter of 2012. Earnings before interest and financing costs were $127.9 million for the three-month period compared to $136.4 million in the third quarter of 2012. After accounting for interest and financing costs, the GTAA recorded net income of $30.2 million for the quarter-ended Sept. 30, 2013, compared to net income of $33.9 million in the comparable 2012 period.
A total of 27.5 million passengers travelled through Toronto Pearson International Airport in the first nine months of 2013, a 2.7 per cent increase compared to the same period in 2012. During the three-month period ended Sept. 30, 2013, passenger traffic increased by 3.1 per cent from 9.8 million passengers to 10.1 million passengers, when compared to the same period in 2012.
