Source: GTAA
The Greater Toronto Airports Authority (“GTAA”) reported its financial and operating results for the three- and six-months ended June 30, 2023. Passenger activity significantly increased by 2.0 million or 22.1 per cent to 11.3 million and 6.6 million or 46.1 per cent to 21.2 million during the second quarter and first half of 2023, when compared to the same periods of 2022. Passenger activity increased due to the high travel demand, which continues to remain strong, and the removal of pandemic-related government travel restrictions that existed during the first half of 2022. During the second quarter and first half of 2023, passenger activity recovered to 88.3 per cent and 86.5 per cent relative to the same periods of 2019 passenger activity, respectively.
“Second quarter of 2023 performance was strong with 22 per cent passenger growth reflecting the strength of the market at Toronto Pearson Airport,” said Deborah Flint, President and CEO, GTAA. “The efforts of our team and valued partners are yielding positive results for our collective customers”.
Ms. Flint shared, “While we strive for further predictability, reliability and enjoyment of travel at Toronto Pearson Airport, we see more resiliency across the ecosystem. I am pleased that Toronto Pearson secured the top position for overall satisfaction ranking by passengers in the Airports Council International (ACI) Large Airport Category in North America for the second quarter of 2023”.
Key Financial and Passenger Information
| For the periods ended June 30 | ||||||||
| Three months | Six months | |||||||
| (millions) | 2023 | 2022 | Change1 | 2023 | 2022 | Change1 | ||
| Passenger Activity | % | % | ||||||
| Domestic | 4.2 | 3.8 | 0.4 | 9.1 | 7.5 | 5.9 | 1.6 | 27.3 |
| International | 7.1 | 5.5 | 1.6 | 31.3 | 13.7 | 8.7 | 5.0 | 59.0 |
| Total | 11.3 | 9.3 | 2.0 | 22.1 | 21.2 | 14.6 | 6.6 | 46.1 |
| ($ millions) | ||||||||
| Total Revenues | 463.8 | 383.7 | 80.1 | 20.8 | 889.4 | 666.4 | 223.0 | 33.5 |
| Total operating expenses (excluding amortization) | 216.3 | 166.9 | 49.4 | 29.6 | 438.9 | 328.6 | 110.3 | 33.6 |
| EBITDA2 | 247.5 | 216.8 | 30.7 | 14.2 | 450.5 | 337.8 | 112.7 | 33.4 |
| Net Income | 81.1 | 51.5 | 29.6 | 57.4 | 129.9 | 6.9 | 123.0 | 1,779.1 |
| Free Cash Flow 2 | 100.7 | 77.1 | 23.6 | 30.6 | 268.9 | 110.6 | 158.3 | 143.1 |
| 1 % Change” and ”%” are based on detailed actual numbers (not rounded as presented). | ||||||||
| 2 Please refer to Non-GAAP Financial Measures at the end of this document for further details. | ||||||||
Revenues increased during the three- and six-months ended June 30, 2023 by $80.1 million to $463.8 million and $223.0 million to $889.4 million, respectively, when compared to the same periods of 2022, primarily due to the significant growth in passenger and flight activity through Toronto Pearson and, to a lesser extent, the rate and fee increases on January 1, 2023.
Earnings before interest and financing costs, and amortization (“EBITDA”) increased significantly during the three- and six-months ended June 30, 2023, when compared to the same periods of 2022, due to the significant increase in revenues associated with higher operating activity, partially offset by the increase in operating costs (before amortization). Net income during the three- and six-months ended June 30, 2023 increased by $29.6 million to $81.1 million and $123.0 million to $129.9 million, respectively, when compared to the same periods of 2022, due to significantly higher revenues associated with the increase in operating activity, a decrease in interest expense, and a moderate increase in amortization relative to revenue growth, offset by a large increase in operating costs (before amortization).
Free cash flow increased during the three- and six-months ended June 30, 2023 by $23.6 million to $100.7 million and $158.3 million to $268.9 million, respectively, when compared to the same periods of 2022, primarily driven by the significant increase in cash flows from operations and the receipt of government grants from the Airport Critical Infrastructure Program, partially offset by the increase in capital expenditures.
The GTAA’s June 30, 2023 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- and six-months ended June 30, 2023, which are available at www.torontopearson.com and on SEDAR at www.sedar.com.