TORONTO, May 9, 2024 /CNW/ – The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the first quarter of 2024. Passenger activity increased by 0.9 million, or 8.7 per cent, from 10.0 million to 10.9 million in the first quarter of 2024, when compared to the same period of 2023, due to strong travel demand. During the first quarter of 2024, passenger activity recovered to 92.3 per cent compared to the first quarter of 2019 passenger activity.
“Toronto Pearson International Airport’s first quarter was one of strong passenger growth, enabled by improving sector resiliency. Our financial performance continues to strengthen, along with improved customer experience and operational performance, as evidenced by a 6 per cent increase in on-time performance (departures) compared to the same period of 2023,” said Deborah Flint, President and CEO of GTAA.
“To complement increased passenger growth, we will undertake improvements to airport assets, such as the addition of high-speed taxi lanes to improve airfield performance, modernized airfield electric lighting and control systems, and power generation and energy efficiencies to move us toward our net-zero targets,” she added. “These targeted improvements are affordable and will provide us with greater redundancy and resiliency, positioning us to meet the operational requirements of short-term growth.”
Key Passenger and Financial Information
| Three months ended March 31 | |||||
| (millions) | 2024 | 2023 | Change1 | ||
| Passenger Activity | % | ||||
| Domestic | 3.5 | 3.4 | 0.1 | 2.6 | |
| International | 7.4 | 6.6 | 0.8 | 11.8 | |
| Total | 10.9 | 10.0 | 0.9 | 8.7 | |
| ($ millions) | |||||
| Total Revenues | 468.5 | 425.7 | 42.8 | 10.1 | |
| Total operating expenses | 249.3 | 222.8 | 26.5 | 11.9 | |
| EBITDA | 219.2 | 202.9 | 16.3 | 8.0 | |
| EBITDA Margin | 46.8 % | 47.7 % | (0.9)pp | ||
| Net Income | 73.6 | 48.8 | 24.8 | 50.8 | |
| Free Cash Flow | 117.1 | 162.3 | (45.2) | (27.8) | |
Revenues increased during the first quarter of 2024 by $42.8 million to $468.5 million, when compared to the same period of 2023, primarily due to the growth in passenger and flight activity through Toronto Pearson.
Earnings before interest and financing costs, and amortization (“EBITDA”) increased during the first quarter of 2024 by $16.3 million to $219.2 million, when compared to the same period of 2023, due to the increase in revenues associated with higher operating activity, partially offset by the increase in operating costs (before amortization).
Net income increased during the first quarter of 2024 by $24.8 million to $73.6 million, when compared to the same period of 2023 due to higher revenues associated with the increase in operating activity, a decrease in interest expense, partially offset by an increase in operating costs during the first quarter of 2024.
Free cash flow decreased during the first quarter of 2024 by $45.2 million to $117.1 million, when compared to the same period of 2023, primarily driven by the decrease in funds received under ACIP and an increase in capital expenditures, partially offset by an increase in cash flows from operations and interest income. Cash flows from operations are being used to fund increasing capital expenditures to improve facilities, enable growth with quality customer experience and moderate debt.
The GTAA’s March 31, 2024 financial results are discussed in more detail in the GTAA’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis, each for the three-months ended March 31, 2024, which are available at www.torontopearson.com and on SEDAR at www.sedarplus.ca.
About Toronto Pearson
The Greater Toronto Airports Authority is the operator of Toronto Pearson International Airport, Canada’s largest airport and a vital connector of people, businesses, and goods.
Toronto Pearson was named “Best Airport over 40 million passengers in North America'” in 2023 by Airports Council International (ACI), the global trade representative of the world’s airports, after winning the award five years running between 2017 and 2021. Toronto Pearson was also recognized in 2024 as one of “Canada’s Best Employers” by Forbes.