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The Greater Toronto Airports Authority (the “GTAA”) has reported its financial and operating results for the three-month period ended March 31, 2014. The results show a continuation of the improvement in aviation activity experienced in 2013. Passenger volumes continued to grow during the first quarter of 2014 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.
For the three months ended March 31, 2014, the GTAA reported total revenues of $283.1 million, a $15.5 million improvement from the same period in 2013. Total operating expenses were $192.8 million, a $15.2 million increase when compared to the first quarter of 2013. Much of this increase in operating expenses was caused by the prolonged winter weather that increased the cost of snow removal and utilities. Earnings before interest and financing costs were $90.3 million for the three-month period ended March 31, 2014. After accounting for interest and financing costs, the GTAA recorded net loss of $6.4 million for the first quarter ended March 31, 2014, compared to net loss of $7.8 million in the comparable 2013 period.
The GTAA is encouraged by the continued growth in non-aeronautical revenue in the retail, and food and beverage sectors as part of a longer term revitalization project. In 2013, 13 new food and beverage locations were opened at Toronto Pearson. Additionally, 14 new luxury boutique locations for Duty Free shopping were opened in 2013.
A total of 8.8 million passengers travelled through Toronto Pearson International Airport in the first three months of 2014, a 4 per cent increase compared to the same period in 2013. During the three-month period ended March 31, 2014, passenger activity in the domestic sector increased by 4.8 per cent, international sector by 4.4 per cent, and transborder sector by 2.6 per cent, over the same period in 2013. Increased growth in international traffic in the last six months included new or increased direct service to Athens, Edinburgh, Venice, Munich, Istanbul and Warsaw.
The GTAA’s March 31, 2014 financial results are discussed in more detail in the GTAA’s Financial Statements and Management’s Discussion and Analysis, each for the quarter ended March 31, 2014, which are available at www.torontopearson.com and on the Canadian Securities Administrators’ website at www.sedar.com.
