GTAA notes growth in passenger activity, income
The Greater Toronto Airports Authority (the GTAA) has reported its financial and operating results for the fiscal year ended December 31, 2016. Passenger activity and net income increased substantially at 8.0 per cent and 29.7 per cent, respectively, during 2016 as compared to 2015. This growth reflects increased capacity of aircraft and new routes, the economic strength of the Greater Toronto Region, and the role of Toronto Pearson International Airport as Canada's largest airport and North America's second busiest airport in terms of international passengers.
“Toronto Pearson’s total passenger traffic for 2016 increased well ahead of worldwide trends,” said Howard Eng, president and CEO of the GTAA. “This strong performance is indicative not only of the airport’s increasingly vital role as a connector of people and goods, but also of the vibrancy of the region in which we operate. The Greater Toronto Area is a world-class centre for travel, commerce and culture; our planning and investments, particularly around the airport and regional transit, must reflect this reality.”
In 2016, Toronto Pearson experienced the largest annual increase in passenger growth in terms of the total number of annual passengers, and also the percentage of passengers for both the domestic and international sectors in the last 10 years. A total of 44.3 million passengers travelled through Toronto Pearson International Airport during 2016, an increase of 3.3 million passengers over 2015. During 2016, passenger activity in the international sector increased by 2.2 million passengers reflecting 8.8 per cent growth and the domestic sector increased by 1.1 million passengers reflecting 6.9 per cent growth over 2015.
The GTAA recorded net income of $85.5 million during 2016 compared to $65.9 million in 2015.
During 2016, the GTAA reported total revenues of $1.3 billion, representing an increase of $85.0 million over 2015. The continued growth in revenues was a reflection of strong annual passenger growth and increases in non-aeronautical revenues. During 2016, the GTAA’s non-aeronautical revenues increased $26.0 million compared to 2015. The increase was due to the high passenger growth, the opening of 25 new retail stores, restaurant, and beverage establishments and increases in parking rates and enhanced marketing initiatives.
Total operating expenses reported during 2016 for the GTAA were $1.2 billion, representing an increase of $65.4 million over 2015. During 2016, the GTAA incurred higher expenditures as a result of its investments in operational excellence and an improved customer experience. Further, expenditures increased as a result of the inclusion of the full year’s costs related to the deicing operations, which were brought in-house by the GTAA in July 2015.
Earnings before interest and financing costs during 2016 were $426.4 million, representing an increase of 0.6 per cent over 2015. Excluding the 2015 one-time ground rent adjustment, adjusted earnings before interest and financing costs increased 2.9 per cent for 2016, when compared to 2015.