TORONTO, March 23, 2023 - The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for 2022. Passenger activity significantly increased by 22.9 million or 180.8 per cent to 35.6 million during 2022, when compared to 2021. Passenger activity increased given the easing of pandemic-related travel restrictions and pent-up travel demand compared to 2021.
With passenger traffic growing strongly over the fourth quarter of 2022, industry must continue to focus on post-pandemic recovery with the aim of providing the stellar passenger experience that Canadians want and deserve,” said Deborah Flint, President and CEO, GTAA. “The recovery is well under way and we are working with everyone across the ecosystem to give passengers a predictable customer experience, streamlined border procedures and modernized airport infrastructure.”
“The GTAA is investing to create the airport of the future, but we call for the federal government to continue investing in modernized infrastructure. That includes allowing Canadian airports to reinvest the rent they pay in order to accelerate progress,” continued Ms. Flint. “Doing so would bring about an aviation system that is globally competitive and on the leading edge of passenger service, benefiting not only travellers but all Canadians by virtue of the strong economic contribution that airports make to their communities, provinces and country.”
Key Financial and Passenger Information
|
(millions) |
2022 |
2021 |
Change1 |
2020 |
|
|
Passenger Activity |
|
|
|
% |
|
|
Domestic |
14.3 |
6.8 |
7.5 |
111.5 |
5.5 |
|
International |
21.3 |
5.9 |
15.4 |
260.1 |
7.8 |
|
Total |
35.6 |
12.7 |
22.9 |
180.8 |
13.3 |
|
($ millions) |
|
|
|
|
|
|
Total Revenues |
1,491.9 |
826.8 |
665.1 |
80.4 |
823.5 |
|
Total operating expenses (excluding impairment of investment property and amortization) |
733.3 |
508.4 |
224.9 |
48.7 |
544.7 |
|
EBITDA2 |
758.6 |
318.4 |
440.2 |
138.3 |
278.8 |
|
Net Income (Loss) |
72.3 |
(350.4) |
422.7 |
120.6 |
(383.4) |
|
Free Cash Flow 2 |
235.4 |
(46.3) |
281.7 |
608.4 |
(513.1) |
|
1 % Change" and "%" are based on detailed actual numbers (not rounded as presented). |
|
|
|
||
|
2 Please refer to Non-GAAP Financial Measures at the end of this document for further details. |
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|
|
||
Passenger activity through Toronto Pearson and resultant revenues increased during 2022, when compared to 2021, although the number of passenger and flight activity remains lower, when compared to 2019. Passenger activity during 2022 was 70.5 per cent of activity in 2019. During the fourth quarter of 2022, passenger activity recovered to 78.9 per cent of 2019 passenger activity.
The GTAA generated net income for the first fiscal year since 2019 (pre-COVID-19). Earnings before interest and financing costs, impairment of investment property and amortization (“EBITDA”) increased significantly during 2022, when compared to 2021, due to a large increase in operating activity and revenues and the prudent management of operating costs. Net income during 2022 increased by $422.7 million to $72.3 million, when compared to the net loss of 2021, due to the same reasons above.
Free cash flow increased during 2022 by $281.7 million to $235.4 million, when compared to 2021, primarily driven by the significant increase in revenues over the increase in costs.
Management continues to analyze the extent of the financial impact of the COVID-19 pandemic, which has now diminished, and to implement recovery plans. In the long term, the GTAA believes that full recovery will be achieved, and the pandemic will not have a material impact on the long-term financial sustainability of the Airport.
The GTAA’s December 31, 2022 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, 2022, which are available at www.torontopearson.com and on SEDAR at www.sedar.com.
Caution Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. This forward-looking information is based on a variety of assumptions and is subject to risks and uncertainties. These statements reflect GTAA Management’s current beliefs and are based on information currently available to GTAA Management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that the GTAA’s assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in the GTAA’s securities regulatory filings, including its most recent Annual Information Form and Management’s Discussion and Analysis, which can be found on SEDAR at www.sedar.com.
NON-GAAP FINANCIAL MEASURES
Throughout this news release, there are references to the following performance measures which in Management’s view are valuable in assessing the economic performance of the GTAA. While these financial measures are not defined by the International Accounting Standards Board (“IFRS”), and are referred to as non-GAAP measures which may not have any standardized meaning, they are common benchmarks in the industry, and are used by the GTAA in assessing its operating results, including operating profitability, cash flow and investment program.
EBITDA
EBITDA is earnings before interest and financing costs, impairment of investment property and amortization. EBITDA is a commonly used measure of a company's operating performance. This is used to evaluate the GTAA’s performance without having to factor in financing and accounting decisions.
Free Cash Flow
Free Cash Flow (“FCF”) is cash flow from operating activities per the consolidated statements of cash flows less capital expenditures (property and equipment, and investment property) and interest and financing costs paid, net of interest income (excluding non-cash items). FCF is used to assess funds available for debt reduction or future investments within Toronto Pearson.
About the Greater Toronto Airports Authority
The GTAA is the operator of Toronto Pearson International Airport.
Contact: GTAA Media Office (416) 776-3709
Twitter: @TorontoPearson