Press release

TORONTO, August 9, 2023 - The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the three- and six-months ended June 30, 2023.  Passenger activity significantly increased by 2.0 million or 22.1 per cent to 11.3 million and 6.6 million or 46.1 per cent to 21.2 million during the second quarter and first half of 2023, when compared to the same periods of 2022.  Passenger activity increased due to the high travel demand, which continues to remain strong, and the removal of pandemic-related government travel restrictions that existed during the first half of 2022. During the second quarter and first half of 2023, passenger activity recovered to 88.3 per cent and 86.5 per cent relative to the same periods of 2019 passenger activity, respectively.

“Second quarter of 2023 performance was strong with 22 per cent passenger growth reflecting the strength of the market at Toronto Pearson Airport,” said Deborah Flint, President and CEO, GTAA.  “The efforts of our team and valued partners are yielding positive results for our collective customers”.

Ms. Flint shared, “While we strive for further predictability, reliability and enjoyment of travel at Toronto Pearson Airport, we see more resiliency across the ecosystem. I am pleased that Toronto Pearson secured the top position for overall satisfaction ranking by passengers in the Airports Council International (ACI) Large Airport Category in North America for the second quarter of 2023”.

Key Financial and Passenger Information

Revenues increased during the three- and six-months ended June 30, 2023 by $80.1 million to $463.8 million and $223.0 million to $889.4 million, respectively, when compared to the same periods of 2022, primarily due to the significant growth in passenger and flight activity through Toronto Pearson and, to a lesser extent, the rate and fee increases on January 1, 2023.

Earnings before interest and financing costs, and amortization (“EBITDA”) increased significantly during the three- and six-months ended June 30, 2023, when compared to the same periods of 2022, due to the significant increase in revenues associated with higher operating activity, partially offset by the increase in operating costs (before amortization).  Net income during the three- and six-months ended June 30, 2023 increased by $29.6 million to $81.1 million and $123.0 million to $129.9 million, respectively, when compared to the same periods of 2022, due to significantly higher revenues associated with the increase in operating activity, a decrease in interest expense, and a moderate increase in amortization relative to revenue growth, offset by a large increase in operating costs (before amortization).

Free cash flow increased during the three- and six-months ended June 30, 2023 by $23.6 million to $100.7 million and  $158.3 million to $268.9 million, respectively, when compared to the same periods of 2022, primarily driven by the significant increase in cash flows from operations and the receipt of government grants from the Airport Critical Infrastructure Program, partially offset by the increase in capital expenditures.

The GTAA’s June 30, 2023 financial results are discussed in more detail in the GTAA’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis, each for the three- and six-months ended June 30, 2023, 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 from operations before interest and financing costs, 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, and ACIP grants received 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