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GTAA reports second quarter, 50% revenue drop year over year

Greater Toronto Airports Authority reported its financial and operating results for the three- and six-month periods ended June 30, 2020, outlining what it describes as material declines in revenue, passengers and flight activity at Toronto Pearson when compared to the same periods in 2019.

Passenger activity at Toronto Pearson decreased 58.6 per cent during the first six months of 2020 when compared to 2019. This included hosting a total of 10.1 million passengers over the first six months of 2020, whereas the first half of 2019 accounted for 24.5 million passengers.

Based on COVID-19 restrictions and demand, the most dramatic decline of passengers came over the past three months of the 2020 second quarter, which saw just 500,000 passengers, versus 12.8 million passengers in the corresponding period of 2019 – a decline of 96.1 per cent.

Greater Toronto Airports Authority (GTAA) reported total revenues of $185.6 million in its 2020 second quarter, a decline of $185.3 million or 50 percent, when compared to the year ago quarter, which generated $370.9 million in revenue. Since April 2020, the GTAA has been working with its airlines, commercial partners and tenants through case-by-case payment deferrals.

For its most current six-month period reported, GTAA’s first half of 2020 generated revenue of $524 million, a decline of $208.6 million or 28.5 per cent, from the first six months of 2019, which generated $733.3 million in revenue. As of June 30, 2020, the GTAA reported a total available liquidity of $1.1 billion.

Toronto Pearson’s operator introduced a range of financial initiatives to combat the economic impact of COVID-19 on aviation. This included, but is not limited to, a reduction in 2020 capital spend by $265 million and the temporary closure of more than 40 per cent of its terminal facilities. GTAA in July also announced the elimination of approximately 500 jobs, representing a reduction of 27 per cent of its workforce.

“In the face of the most challenging period in the history of aviation, we have delivered on a clear program for financial sustainability and a comprehensive approach to support the restart of our business through our Healthy Airport program,” said Deborah Flint, president and CEO, Greater Toronto Airports Authority. “This investment in leading health measures and innovative new hygiene practices positions Toronto Pearson to create a safe air corridor to other low risk countries.”

Launched in June 2020, Toronto Pearson’s Healthy Airport program outlines the steps that the airport and its partners are implementing to restore confidence in air travel. This includes safety measures like a disinfection corridor, real-time air quality monitoring, UV light disinfection and autonomous floor cleaners, enhanced cleaning and the installation of hundreds of plexiglass barriers throughout the airport.