GTAA Reports 2010 Results
Competitiveness remains one of GTAA's focus areas, demonstrated through the reduction in the connecting AIF, holding 2011 aeronautical fees at the 2010 level and enacting rate reductions in the three previous years.
The Greater Toronto Airports Authority (the "GTAA") reported its financial and operating results for the fiscal year ending December 31, 2010. The GTAA was able to exceed its financial and operating objectives for 2010.
For the twelve months ended December 31, 2010, the GTAA reported total revenues of $1.1 billion. Total operating expenses were $483.7 million, including $120.3 million in ground rent paid to the federal government. Revenues over operating expenses in 2010 were $628.5 million.
After accounting for debt service and amortization, the GTAA recorded revenues under expenses of $3.8 million for the year, compared to revenues under expenses of $19.2 million in 2009. The excess of expenses over revenues was anticipated due to the amortization of airport facilities, a nonâcash expense which is not recovered from the airlines operating at Toronto Pearson.
During the 3-month period ended December 31, 2010, the GTAA recorded revenues under expenses of $18.9 million, compared to $40.5 million in 2009. Due to seasonal patterns in air traffic and operating expenses, expenses typically exceed revenues in the fourth quarter of each year.
A total of 31.8 million passengers travelled through Toronto Pearson International Airport (the "Airport") in 2010, a 4.9 per cent increase compared to 2009. Although passenger activity in the domestic traffic segment was essentially unchanged in 2010 when compared to 2009, there was a marked improvement in passenger activity in the transborder and international segments with increases of 7 per cent and 9.5 per cent year-over-year, respectively. During 2010 air carriers operating at Toronto Pearson have increased (on a net basis) service on a total of 57 routes representing either entirely new destinations served or increases in capacity on existing routes, when compared to 2009.
To fund capital expenditures and to repay maturing debt, the GTAA issued $400 million in medium term notes during 2010. Debt repayments totaled $961.5 million during the year. A portion of the proceeds of the debt issued in 2010 will be used for repayment of debt maturing in 2011.
On September 30, 2010, the GTAA announced its aeronautical fees for 2011. During 2010 the GTAA restructured the rates it charges to air carriers to promote the more efficient use of airport facilities. The overall effect was that aggregate rates for 2011, on a unit cost basis, were essentially unchanged from 2010 levels.
The GTAA also reduced the Airport Improvement Fee ("AIF") for connecting passengers from $8 to $4 effective January 1, 2011. The Airport Improvement Fee for originating passengers remained unchanged at $25.
Competitiveness remains one of GTAA's focus areas, demonstrated through the reduction in the connecting AIF, holding 2011 aeronautical fees at the 2010 level and enacting rate reductions in the three previous years.
The 2010 financial results of the GTAA are discussed in more detail in the Financial Statements
and Notes of the GTAA for the years ended December 31, 2010 and 2009 and Management's Discussion and Analysis for the year ended December 31, 2010, which are available at www.gtaa.com and on the Canadian Securities Administrators' website at www.sedar.com.
The GTAA is the operator of Toronto Pearson International Airport, the largest airport in Canada and one of the largest airports in North America in terms of passenger and air cargo traffic.
Contact: GTAA Media Office (416) 776-3709