TORONTO, Nov. 12, 2024 /CNW/ – The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the third quarter and the first nine months of 2024.  Travel demand continued to show a  steady incline. As a result, passenger activity increased by 0.3 million or 3.1 per cent (from 12.5 million to 12.8 million) in the third quarter of 2024 and 1.7 million or 5.1 per cent (from 33.8 million to 35.5 million) during the first nine months of the 2024, when compared to the same periods of 2023.  Most of the growth in the first nine months of 2024 was attributable to international travel, which reflected a 9.0 per cent increase in international passengers over 2023.

Amid the increase in travel demand this year, Toronto Pearson has maintained both a solid financial performance and high levels of passenger satisfaction, consistent with its current ranking as North America’s best large airport by Airports Council International. With travel demand expected to rise to 65 million annual passengers by the early 2030s, Toronto Pearson is strategically positioning itself for the future with Pearson LIFT, the organization’s plan to transform Pearson into one of the most advanced, sustainable and passenger-friendly airports in the world through cost-effective, value-driven investments. Pearson LIFT is a part of Toronto Pearson’s capital plan spanning more than a decade. It includes three major programs that will address passenger growth demands and prepare the airport for the future of travel.

“The investments we’re making in Toronto Pearson are essential for us to maintain our status as a world-class, international airport that delivers on our vision of bringing joy back to travel,” said Deborah Flint, President and CEO. “As we proceed with LIFT, we are ensuring stakeholders are informed and engaged in the evolution of Toronto Pearson. In a formal planning process, the majority of our airline partners endorsed our LIFT program, signaling confidence in our strategy to grow the airport responsibly and affordably. We appreciate the input we have asked for and received from airlines, government agencies, community groups and other stakeholders. We will continue this approach with our stakeholders as we prepare to select partners to further plan, solution, design and ultimately construct the final project scope.”

Key Passenger and Financial Information

Revenues increased during the three- and nine-months ended September 30, 2024 by $26.7 million to $531.2 million and $91.1 million to $1,485.0 million, respectively, when compared to the same periods of 2023, primarily due to the rates and charges going up in January 2024.

Earnings before interest and financing costs, and amortization (“EBITDA”) decreased during the three-months ended September 30, 2024 by $42.4 million to $237.2 million due to an increase in operating costs (before amortization), partially offset by the increase in revenues.  EBITDA increased during the nine-months ended September 30, 2024 by $1.2 million to $731.2 million, when compared to the same periods of 2023, due to the increase in revenues associated with higher operating activity, and new rates and charges, largely offset by the increase in operating costs (before amortization).

Net income increased during three- and nine-months ended September 30, 2024 by $22.6 million to $122.3 million and $52.7 million to $282.4 million, respectively, when compared to the same period of 2023 due to higher revenues associated with the increase in operating activity and a decrease in interest expense, partially offset by an increase in operating costs during the third quarter and nine months of 2024.

Free cash flow decreased during three- and nine-months ended September 30, 2024 by $13.3 million to $194.2 million and $125.2 million to $351.2 million, respectively, when compared to the same periods of 2023, primarily driven by the decreases in cash flows from operations and less funds received under the Airport Critical Infrastructure Program  an increase in capital expenditures, while partially offset by an increase in interest income.  Free cash flow is a non-GAAP financial measure.  Cash flows from operations are being used to fund increasing capital expenditures to improve facilities and enable growth, while maintaining quality customer experience and moderate debt levels.

The GTAA’s September 30, 2024 financial results are analyzed in more detail in the GTAA’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis, each for the three- and nine-months ended September 30, 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, (reversal)/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 flows 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 was named “Best Airport over 40 million passengers in North America‘” in 2023 by Airports Council International (ACI), the global trade representative of the world’s airports, after winning the award five years running between 2017 and 2021. Toronto Pearson was also recognized in 2024 as one of “Canada’s Best Employers” by Forbes.

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SOURCE Toronto Pearson

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