TORONTO, CANADA - The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the first quarter of 2024. Passenger activity increased by 0.9 million, or 8.7 per cent, from 10.0 million to 10.9 million in the first quarter of 2024, when compared to the same period of 2023, due to strong travel demand. During the first quarter of 2024, passenger activity recovered to 92.3 per cent compared to the first quarter of 2019 passenger activity.
"Toronto Pearson International Airport's first quarter was one of strong passenger growth, enabled by improving sector resiliency. Our financial performance continues to strengthen, along with improved customer experience and operational performance, as evidenced by a 6 per cent increase in on-time performance (departures) compared to the same period of 2023," said Deborah Flint, President and CEO of GTAA.
"To complement increased passenger growth, we will undertake improvements to airport assets, such as the addition of high-speed taxi lanes to improve airfield performance, modernized airfield electric lighting and control systems, and power generation and energy efficiencies to move us toward our net-zero targets," she added. "These targeted improvements are affordable and will provide us with greater redundancy and resiliency, positioning us to meet the operational requirements of short-term growth."
Key Passenger and Financial Information
|
|
Three months ended March 31 |
||||
|
|
|
|
|
|
|
|
(millions) |
2024 |
2023 |
|
Change1 |
|
|
Passenger Activity |
|
|
|
|
% |
|
Domestic |
3.5 |
3.4 |
|
0.1 |
2.6 |
|
International |
7.4 |
6.6 |
|
0.8 |
11.8 |
|
Total |
10.9 |
10.0 |
|
0.9 |
8.7 |
|
($ millions) |
|
|
|
|
|
|
Total Revenues |
468.5 |
425.7 |
|
42.8 |
10.1 |
|
Total operating expenses 2 |
249.3 |
222.8 |
|
26.5 |
11.9 |
|
EBITDA 3 |
219.2 |
202.9 |
|
16.3 |
8.0 |
|
EBITDA Margin |
46.8 % |
47.7 % |
|
|
(0.9) pp |
|
|
|
|
|
|
|
|
Net Income |
73.6 |
48.8 |
|
24.8 |
50.8 |
|
|
|
|
|
|
|
|
Free Cash Flow 3 |
117.1 |
162.3 |
|
(45.2) |
(27.8) |
|
1 % Change" and "%" are based on detailed actual numbers (not rounded as presented). |
|
|
|
||
|
2 Total operating expenses excluding amortization. |
|
||||
|
3 Please refer to Non-GAAP Financial Measures at the end of this document for further details. |
|
||||
Revenues increased during the first quarter of 2024 by $42.8 million to $468.5 million, when compared to the same period of 2023, primarily due to the growth in passenger and flight activity through Toronto Pearson.
Earnings before interest and financing costs, and amortization (“EBITDA”) increased during the first quarter of 2024 by $16.3 million to $219.2 million, when compared to the same period of 2023, due to the increase in revenues associated with higher operating activity, partially offset by the increase in operating costs (before amortization).
Net income increased during the first quarter of 2024 by $24.8 million to $73.6 million, when compared to the same period of 2023 due to higher revenues associated with the increase in operating activity, a decrease in interest expense, partially offset by an increase in operating costs during the first quarter of 2024.
Free cash flow decreased during the first quarter of 2024 by $45.2 million to $117.1 million, when compared to the same period of 2023, primarily driven by the decrease in funds received under ACIP and an increase in capital expenditures, partially offset by an increase in cash flows from operations and interest income. Cash flows from operations are being used to fund increasing capital expenditures to improve facilities, enable growth with quality customer experience and moderate debt.
The GTAA’s March 31, 2024 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-months ended March 31, 2024, which are available at www.torontopearson.com and on SEDAR at www.sedarplus.ca.
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.sedarplus.ca.
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, 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, impairment of investment property, write-down of property and equipment, 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, investment property, and other) 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 Toronto Pearson
The Greater Toronto Airports Authority is the operator of Toronto Pearson International Airport, Canada’s largest airport and a vital connector of people, businesses and goods.
Toronto Pearson has been named “Best Large Airport in North America serving more than 40 million passengers” for five years in a row by Airports Council International (ACI), the global trade representative of the world’s airports. In recognition of its Healthy Airport program, ACI has also awarded Toronto Pearson the “Best hygiene measures in North America” award for three years running, and Toronto Pearson was the first Canadian airport to receive ACI’s global health accreditation for its response to COVID-19.
For our corporate X channel, please visit @PearsonComms. For operational updates and passenger information, please visit @TorontoPearson/@AeroportPearson on X. You can also follow us on Facebook or Instagram.
Contact: GTAA Media Office | media.relations@gtaa.com | (416) 776-3709