GTAA reports 2016 first quarter results: domestic traffic leads overall growth at Toronto Pearson

TORONTO, May 12, 2016 /CNW/ -  The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the three-month period ended March 31, 2016.  Passenger volumes grew by 5.7 per cent during the first quarter of 2016 as compared to the first quarter of 2015, reflecting both the economic strength of the Greater Toronto Region, and the role of Toronto Pearson International Airport as Canada's largest airport and North America's second busiest airport in terms of international passengers.

"Toronto Pearson's continued growth is reflective of the economic strength of the region and the GTAA's contribution as a global hub airport," said Howard Eng, President and CEO of the GTAA. "Our financial position is strong and we continue to pay down debt while enhancing the passenger experience such as additional self-serve options."  

A total of 9.9 million passengers travelled through Toronto Pearson in the first three months of 2016.  During the three-month period ended March 31, 2016, passenger activity in the domestic sector increased by 6.1 per cent and the international sector by 5.4 per cent, over the same period in 2015.  The domestic sector has risen sharply due to a shift in flight activity to Toronto Pearson from other parts of the country.

For the three months ended March 31, 2016, the GTAA reported total revenues of $303.7 million, an $18.4 million improvement from the same period in 2015.  The continued growth in revenues was a reflection of continued passenger growth; $5.7 million generated from the Deicing Operation, which was in-sourced by the GTAA in July 2015; and the increases in concession and rental revenues.  During the first three months of 2016, the GTAA's non-aeronautical revenues, excluding deicing revenues, increased 7.1 per cent compared to the same period last year.  This was due to the opening of over 20 new retail stores, restaurants and beverage establishments.    

Total operating expenses during the first quarter of 2016 were $152.3 million, a $14.1 million increase when compared to the first quarter of 2015.  During the first three months of 2016, the GTAA continued to invest in initiatives to improve the customer experience.  Additional costs were incurred in the first quarter of 2016, when compared to the first quarter of 2015, due to the in-sourcing of the Deicing Operations.

Earnings before interest and financing costs were $90.4 million for the three-month period ended March 31, 2016.  After accounting for interest and financing costs, the GTAA recorded net income of $4.0 million for the first quarter ended March 31, 2016, compared to net loss of $1.2 million in the comparable 2015 period.   

On February 16, 2016, the GTAA issued five-year $300 million Series 2016-1 Medium Term Notes ("MTNs") to partially refinance the $350 million Series 2005-3 MTNs, which matured and were repaid on February 16, 2016.  The balance of $50 million was funded through the GTAA's revolving operating credit facility and operating cash flows.

The GTAA's March 31, 2016 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, 2016, which are available at www.torontopearson.com and on the Canadian Securities Administrators' website at www.sedar.com.

The GTAA is the operator of Toronto Pearson International Airport.

SOURCE Greater Toronto Airports Authority