GTAA reports second quarter results
Aug. 14, 2008 Toronto - The Greater Toronto Airports Authority (the "GTAA") yesterday reported its financial and operating results for the 6-month period ending June 30, 2008.
August 14, 2008 By Drew McCarthy
Aug. 14, 2008 Toronto – The Greater Toronto Airports Authority (the
"GTAA") yesterday reported its financial and operating results for the 6-month
period ending June 30, 2008. A total of 16.1 million passengers were processed
at Toronto Pearson International Airport in the first half of 2008, a 5.7 per
cent increase compared to the same 2007 period. Effective January 1, 2008 the
GTAA reduced landing fees and terminal charges, 3.0 per cent and 4.7 per cent
respectively. In July 2008, the GTAA announced a further 25 per cent reduction
of landing fees for cargo operations that will be effective January 1, 2009.
For the three-month period ended June 30, 2008, revenue over expenses was
$7.2 million, an improvement of $10.4 million compared to revenues under
expenses of $3.2 million for the same period in 2007. Total revenues for the
period were $297.5 million, an $8.9 million increase over the second quarter
of 2007. Total operating expenses, including ground rent, were $130.2 million
in the second quarter of 2008, compared to $126.8 million in the same 2007
period. Included in the 2008 second quarter results is a $2.5 million fair
value charge for asset backed commercial paper held by the GTAA.
For the six months ended June 30, 2008 the GTAA reported total revenues
of $589.7 million compared to $562.6 million in the same 2007 period. Total
operating expenses were $282.1 million, including $71.0 million in ground rent
paid to the federal government. In the first six months of 2007 operating
expenses were $272.7 million. After accounting for debt service and
amortization, the GTAA recorded revenues under expenses of $19.6 million for
the period, an improvement of $13.2 million compared to revenues under
expenses of $32.8 million in the same period in 2007. These 2008 results
include a $15.3 million fair value charge for asset backed commercial paper
held by the GTAA.
The GTAA sets its aeronautical rates annually on a modified cash basis.
Accordingly, certain non-cash items such as amortization are not included when
calculating aeronautical rates. On this modified cash basis the GTAA continues
to generate revenues and maintain adequate liquidity to fund its operating and
The financial and operating results recorded in the first half of 2008
are reflective of the implementation of the GTAA's current five-year strategic
plan, which is intended to further develop revenue, efficiency and customer
service initiatives. The GTAA continues to work aggressively to drive down
expenses, increase non-aeronautical revenues and increase aeronautical
During the second quarter of 2008 the GTAA issued $500 million of Series
2008-1 Medium Term Notes due April 17, 2018. Proceeds of the issue were used
to fund reserve funds and capital expenditures and to repay the $375 million
Series 2003-1 Medium Term Notes, which matured on June 2, 2008.
The financial results of the GTAA for the first six months of 2008 are
discussed in more detail in the Financial Statements of the GTAA for the six
months ended June 30, 2008 and Management's Discussion and Analysis which are
available at www.gtaa.com and on the Canadian Securities Administrators'
website at www.sedar.com.
The GTAA is the operator of Toronto Pearson International Airport, the
largest airport in Canada and one of the largest airports in North America in
terms of passenger and air cargo traffic.