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The Greater Toronto Airports Authority (GTAA) today reported its financial and operating results for 2023.
Passenger activity significantly increased by 9.2 million, or 25.8 per cent, from 35.6 million to 44.8 million in 2023, when compared to 2022, due to strong travel demand and the travel industry partners’ ability to deliver more consistent levels of service following recovery challenges in 2022.
During 2023, passenger activity recovered to 88.9 per cent compared to 2019 passenger activity. During the month of December 2023, passenger activity recovered to 93.7 per cent of December 2019 passenger activity.
“In 2023, travel activity was robust with nearly 45 million passengers at Toronto Pearson International Airport. Successful fourth quarter operations showcased the value of Toronto Pearson’s operating and capital investments in people, processes, technology, and equipment,” said Deborah Flint, president and CEO of GTAA.
“Our 10-year strategic plan underpins necessary infrastructure reinvestment and revitalization that will make Toronto Pearson a global leader in airport performance, customer care, and sustainability.”
“As the industry steadily improves and grows, we and our partners are focused on delivering greater operational performance, efficiency and customer experience. We are working with community and government leaders on our development plans, which will further stimulate job creation and strengthen the surrounding major employment hub. We are also proud to regain our ranking in the Forbes List of Best Employers in 2024 and to be ranked first in the Airport Service Quality Award for Best Airport over 40 Million Passengers in North America. Finally, through our environmental and people strategy, our employees and passengers alike are seeing new experiences and results to be proud of,” added Flint.
Revenues increased during 2023 by $395.2 million to $1,887.1 million, when compared to 2022, primarily due to the significant growth in passenger and flight activity through Toronto Pearson and the rate and fee increases on January 1, 2023.
Earnings before interest and financing costs, and amortization (“EBITDA”) increased significantly during 2023 by $201.5 million to $960.3 million, when compared to 2022, due to the significant increase in revenues associated with higher operating activity, partially offset by the increase in operating costs (before impairment of investment property, write-down of property and equipment, and amortization).
Net income during 2023 increased by $192.7 million to $265 million, when compared to 2022 due to significantly higher revenues associated with the increase in operating activity, a decrease in interest expense, partially offset by a large increase in operating costs during 2023.
Free cash flow increased during 2023 by $233.3 million to $468.7 million, when compared to 2022, primarily driven by the increase in cash flows from operations and interest income, and due to the funds received under ACIP, partially offset by the increase in capital expenditures.
Cash flows from operations are being used to fund increasing capital expenditures to improve facilities, enable growth with quality customer experience and moderate debt.
During 2023, some notable results from the GTAA’s capital investments included:
• repair and replacement of approximately 340,000 square metres of airside surfaces, including taxiways, apron slabs, and service roads;
• increased gate resiliency and passenger capacity to support operations and increased traffic demand through the installation of five new passenger boarding bridges at the Infield Concourse bringing total available bridges to eleven at that facility;
• launch of the new Arrivals & Transfer Facility in Terminal 3 which delivers an enhanced experience for those passengers making international to domestic and international to international connections by reducing connection times up to 30 minutes;
• installation of 99 new common-use self-serve kiosks fully compliant with Canadian Transportation Agency accessibility regulations, which are quicker and easier to use, and reported an approximate 50 per cent reduction in incidents;
• installation of 631 new common-use passenger processing agent workstations resulting in a reduction in incidents by approximately 65 per cent; and
• upgraded border modernization by replacing 177 old generation kiosks with new kiosks resulting in an improvement in processing times by approximately 25 per cent and in biometric matching and passport read rates by approximately 20 per cent, and installed 80 new digital screens in the customs halls which display content such as wait times and real-time availability of devices so passengers know where to go.
In December 2023, the GTAA entered into Airline Partnership Agreements with several airlines for a new rebate program aimed at driving better performance and passenger experience at Toronto Pearson.
These airlines, representing approximately 90 per cent of seats at Toronto Pearson, are eligible to earn rebates commencing January 2024 on aeronautical fees for measures that contribute to departing on time, delivering bags within thirty minutes, towing aircraft off gates when going out of service, and efficient use of check-in counters to incent airlines financially to meet consistently high customer experience expectations.
The GTAA’s December 31, 2023 financial results are discussed in more detail in the GTAA’s Consolidated Financial Statements and Management’s Discussion and Analysis, each for the year ended December 31, 2023, which are available at www.torontopearson.com and on SEDAR at www.sedarplus.ca.
This press release was prepared and distributed by the Greater Toronto Airports Authority.
