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GTAA reports 2011 results

March 29, 2011, Toronto - The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the fiscal year endingDecember 31, 2011.


March 29, 2012
By Carey Fredericks

Despite the somewhat uneven economic recovery, passenger volume at Toronto Pearson International Airport (the "Airport") increased by 4.7 per cent during 2011 when compared to 2010.  Continued strong performance in generating non-aeronautical revenues and cost control resulted in an increase in revenues, reduction in operating expenses and an improvement in net results when compared to 2010.

For the twelve months ended December 31, 2011, the GTAA reported total revenues of $1.1 billion.  Total operating expenses were $695.8 million, including $131.0 millionin ground rent paid to the federal government.  Earnings before interest and financing costs were $441.8 million.  After accounting for interest and financing costs, the GTAA recorded a net loss of $17.1 million, compared to a net loss of $27.0 million in 2010. The 2011 results include a one-time charge of $27.6 million due to the early retirement of certain GTAA debt.

During the 3-month period ended December 31, 2011, the GTAA recorded a net loss of $16.2 million, compared to a net loss of $25.4 million in 2010.  Due to seasonal patterns in air traffic and operating expenses, expenses typically exceed revenues in the fourth quarter of each year.

A total of 33.4 million passengers traveled through the Airport in 2011, a 4.7 per cent increase compared to 2010.   Passenger activity in the domestic traffic segment increased 2.7 per cent when compared to 2010.  Transborder passenger activity increased 4.1 per cent in 2011 when compared to 2010. As has been the case for several years, international passenger activity showed the strongest growth, up 7.6 per cent in 2011 when compared to 2010.  During 2011, when compared to prior year, air carriers serving Toronto Pearson increased service (on a net basis) on a total of 44 routes, representing either completely new service or an increase in capacity on existing routes.

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To fund capital expenditures and to repay maturing debt, the GTAA issued $1.0 billion in medium term notes during 2011.  Debt repayments totaled $575.0 million during the year.  A portion of the proceeds of the debt issued in 2011 was used for the repayment of $500.0 million in debt which matured on January 30, 2012.

On September 28, 2011, the GTAA announced its aeronautical fees for 2012.  The combined impact of the new aeronautical fee changes was an overall average reduction of approximately 2.5 per cent in 2012 compared to the overall 2011 aeronautical fees.  Since 2012 is the third year of the three-year phase-in of the turnaround fee, the turnaround fee per movement was increased by 50 per cent on January 1, 2012.  In order to offset the increase in the turnaround fee, and achieve the 2.5 per cent reduction in overall aeronautical fees, the landing fee, general terminal charge and check-in fee were decreased by 6.7 per cent, 9.3 per cent, and 5.9 per cent respectively.  Effective January 1, 2012, the landing fees for cargo aircraft were reduced by 6.9%.

Competitiveness remains one of GTAA's focus areas and 2012 represents the fifth consecutive year that the GTAA has reduced or maintained its aeronautical fees.

The 2011 financial results of the GTAA are discussed in more detail in the Financial Statements of the GTAA for the years ended December 31, 2011 and 2010 and Management's Discussion and Analysis for the year ended December 31, 2011, which are available at www.torontopearson.com and on the Canadian Securities Administrators' website at www.sedar.com.

The GTAA vision statement – "Toronto Pearson will be North America's premier portal to a world of possibilities" and mission statement – "Together, we will attract, serve, and delight our customers by consistently delivering value through innovative products and services" guide corporate activities and ensure a focus on providing quality aviation facilities and services for air carriers, passengers and other users of Toronto Pearson.


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