TORONTO, March 28,
2024 /CNW/ - The Greater Toronto Airports Authority
("GTAA") today reported its financial and operating results for
2023. Passenger activity significantly increased by 9.2
million, or 25.8 per cent, from 35.6 million to 44.8 million in
2023, when compared to 2022, due to strong travel demand and the
travel industry partners' ability to deliver more consistent levels
of service following recovery challenges in 2022. During 2023,
passenger activity recovered to 88.9 per cent compared to 2019
passenger activity. During the month of December 2023, passenger activity recovered to
93.7 per cent of December 2019
passenger activity.
"In 2023, travel activity was robust with nearly 45 million
passengers at Toronto Pearson International Airport. Successful
fourth quarter operations showcased the value of Toronto Pearson's
operating and capital investments in people, processes, technology,
and equipment," said Deborah Flint,
President and CEO of GTAA. "Our 10-year strategic plan underpins
necessary infrastructure reinvestment and revitalization that will
make Toronto Pearson a global leader in airport performance,
customer care, and sustainability."
"As the industry steadily improves and grows, we and our
partners are focused on delivering greater operational performance,
efficiency and customer experience. We are working with community
and government leaders on our development plans, which will further
stimulate job creation and strengthen the surrounding major
employment hub. We are also proud to regain our ranking in the
Forbes List of Best Employers in 2024 and to be ranked first in the
Airport Service Quality Award for Best Airport over 40 Million
Passengers in North America.
Finally, through our environmental and people strategy, our
employees and passengers alike are seeing new experiences and
results to be proud of," added Ms. Flint.
Key Passenger and Financial
Information
(millions)
|
2023
|
2022
|
|
Change1
|
2021
|
Passenger
Activity
|
|
|
|
|
%
|
|
Domestic
|
16.5
|
14.3
|
|
2.2
|
15.3
|
6.8
|
International
|
28.3
|
21.3
|
|
7.0
|
32.9
|
5.9
|
Total
|
44.8
|
35.6
|
|
9.2
|
25.8
|
12.7
|
($ millions)
|
|
|
|
|
|
|
Total
Revenues
|
1,887.1
|
1,491.9
|
|
395.2
|
26.5
|
826.8
|
EBITDA 2
|
960.3
|
758.8
|
|
201.5
|
26.6
|
318.4
|
Net
Income
|
265.0
|
72.3
|
|
192.7
|
266.8
|
(350.4)
|
Free Cash Flow
2
|
468.7
|
235.4
|
|
233.3
|
99.1
|
(46.3)
|
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.
|
Revenues increased during 2023 by $395.2
million to $1,887.1 million,
when compared to 2022, primarily due to the significant growth in
passenger and flight activity through Toronto Pearson and the rate
and fee increases on January 1,
2023.
Earnings before interest and financing costs, and amortization
("EBITDA") increased significantly during 2023 by $201.5 million to $960.3
million, when compared to 2022, due to the significant
increase in revenues associated with higher operating activity,
partially offset by the increase in operating costs (before
impairment of investment property, write-down of property and
equipment, and amortization).
Net income during 2023 increased by $192.7 million to $265.0
million, when compared to 2022 due to significantly higher
revenues associated with the increase in operating activity, a
decrease in interest expense, partially offset by a large increase
in operating costs during 2023.
Free cash flow increased during 2023 by $233.3 million to $468.7
million, when compared to 2022, primarily driven by the
increase in cash flows from operations and interest income, and due
to the funds received under ACIP, partially offset by the increase
in capital expenditures. Cash flows from operations are being
used to fund increasing capital expenditures to improve facilities,
enable growth with quality customer experience and moderate
debt.
During 2023, some notable results from the GTAA's capital
investments included:
- repair and replacement of approximately 340,000 square metres
of airside surfaces, including taxiways, apron slabs, and service
roads;
- increased gate resiliency and passenger capacity to support
operations and increased traffic demand through the installation of
five new passenger boarding bridges at the Infield Concourse
bringing total available bridges to eleven at that facility;
- launch of the new Arrivals & Transfer Facility in Terminal
3 which delivers an enhanced experience for those passengers making
international to domestic and international to international
connections by reducing connection times up to 30 minutes;
- installation of 99 new common-use self-serve kiosks fully
compliant with Canadian Transportation Agency accessibility
regulations, which are quicker and easier to use, and reported an
approximate 50 per cent reduction in incidents;
- installation of 631 new common-use passenger processing agent
workstations resulting in a reduction in incidents by approximately
65 per cent; and
- upgraded border modernization by replacing 177 old generation
kiosks with new kiosks resulting in an improvement in processing
times by approximately 25 per cent and in biometric matching and
passport read rates by approximately 20 per cent, and installed 80
new digital screens in the customs halls which display content such
as wait times and real-time availability of devices so passengers
know where to go.
In December, 2023, the GTAA entered into Airline Partnership
Agreements with several airlines for a new rebate program aimed at
driving better performance and passenger experience at Toronto
Pearson. These airlines, representing approximately 90 per
cent of seats at Toronto Pearson, are eligible to earn rebates
commencing January 2024 on
aeronautical fees for measures that contribute to departing on
time, delivering bags within thirty minutes, towing aircraft off
gates when going out of service, and efficient use of check-in
counters to incent airlines financially to meet consistently high
customer experience expectations.
The GTAA's December 31, 2023
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, 2023, 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 the Greater Toronto Airports
Authority
The GTAA is the operator of Toronto Pearson International
Airport.
Twitter: @TorontoPearson
SOURCE Greater Toronto Airports Authority