The Greater Toronto Airports Authority (the “GTAA”) today reported its financial and operating results for the fiscal year ended December 31, 2015. Passenger volumes grew by 6.4 per cent during 2015 as compared to 2014, reflecting both the economic strength of the Greater Toronto Region, and the role of Toronto Pearson as Canada’s largest airport andNorth America’s second busiest airport in terms of international passengers.
“Toronto Pearson served 41 million passengers in 2015, showing that there is continued demand for air travel in southern Ontario. We have also seen continued growth in our role as a hub – more people are connecting through Toronto Pearson as part of their global travels,” said Howard Eng, President and CEO of the GTAA. “These higher passenger volumes show the need for increased support from government agency resourcing and technology to ensure a seamless airport experience.”
As a global hub airport, Toronto Pearson has a robust network offering direct flights to 144 international and 30 Canadian cities. During 2015, passenger activity in the international sector (which includes US transborder) increased by 7.7 per cent, and domestic sector activity increased by 4.4 per cent, over prior year.
For the twelve months ended December 31, 2015, the GTAA reported total revenues of $1.2 billion, compared to $1.15 billion in 2014. The continued growth in revenues was a reflection of large passenger growth over the last two years and the strong performance from the non-aeronautical commercial business. During 2015, there were 21 new retail stores, restaurants and service openings, including twelve in Terminal 1 and nine in Terminal 3, which includes seven new openings in the newly renovated and reopened Pier A.
Total operating expenses in 2015 were $776.9 million, a $45.1 million increase when compared to 2014. During 2015, the GTAA continued to invest in preventative maintenance, additional airport security and improving the customer experience. Additional initial set-up costs were incurred when the GTAA took over the Deicing Operations in July 2015 from a third party service provider.
Earnings before interest and financing costs were $423.7 million and $421.8 million in 2015 and 2014, respectively. After accounting for interest and financing costs, the GTAA recorded net income of $65.9 million in 2015 versus a net loss of $59.6 million in 2014. By excluding a one-time charge of $102.3 million recorded in 2014 related to the GTAA’s purchase and cancellation of $399.3 millionface value of its outstanding debt, the GTAA generated net income of $42.7 million in 2014. Net income is reinvested in the Airport for new initiatives to improve Airport operations and customer service, to fund capital projects or to repay existing debt.
The GTAA’s 2015 financial results are discussed in more detail in the GTAA’s Financial Statements for the years ended December 31, 2015 and 2014 and Management’s Discussion and Analysis for the year ended December 31, 2015, which are available atwww.torontopearson.com and on the Canadian Securities Administrators’ website at www.sedar.com.