TORONTO, May 9, 2023 /CNW/ – The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the first quarter of 2023. Passenger activity significantly increased by 4.8 million or 90.4 per cent to 10.0 million during the first quarter of 2023, when compared to the same period of 2022. Passenger activity increased due to the pent-up travel demand and the removal of pandemic-related government travel restrictions that existed during the first quarter of 2022. During the first quarter of 2023, passenger activity recovered to 86.0 per cent of the first quarter of 2019 passenger activity.
“Strong growth in passenger traffic continuing into first quarter of 2023 reflects the strength of demand for Toronto Pearson,” said Deborah Flint, President and CEO, GTAA. “As Canada’s largest airport, bringing stability to the operating environment has been our focus with a call-to-action to our team and service partners that can meet the needs of passengers. We have dedicated significant resources to ensure a prepared and resilient start to the summer travel season and ensuring that Toronto Pearson remains a top choice for travelers worldwide.”
“The aviation industry must continue to modernize and invest in the leading services and amenities travelers want,” continued Ms. Flint. “We are elevating the level of collaboration with our partners to increase sharing information, communicating effectively to the public during irregular operations, and meeting service-level commitments. We are seeing the results of reinvesting in our people, digital tools, and facilities.”
Key Financial and Passenger Information
| Three months ended March 31 | ||||
| (millions) | 2023 | 2022 | Change1 | |
| Passenger Activity | % | |||
| Domestic | 3.4 | 2.0 | 1.4 | 63.9 |
| International | 6.6 | 3.2 | 3.4 | 107.6 |
| Total | 10.0 | 5.2 | 4.8 | 90.4 |
| ($ millions) | ||||
| Total Revenues | 425.7 | 282.7 | 143.0 | 50.6 |
| Total operating expenses (excluding amortization) | 222.8 | 161.7 | 61.1 | 37.7 |
| EBITDA | 202.9 | 121.0 | 81.9 | 67.7 |
| Net Income (Loss) | 48.8 | (44.6) | 93.4 | 209.4 |
| Free Cash Flow | 162.3 | 33.5 | 128.8 | 384.5 |
Revenues increased during the first quarter of 2023 by $143.0 million to $425.7 million, when compared to the same period 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 first quarter of 2023, when compared to the same period of 2022, due to a significant increase in operating activity and revenues while managing operating costs. Net income during the first quarter of 2023 increased by $93.4 million to $48.8 million, when compared to the net loss in the same period of 2022, due to the same reasons above.
Free cash flow increased during the first quarter of 2023 by $128.8 million to $162.3 million, when compared to the same period 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 March 31, 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 first quarter ended March 31, 2023, which are available at www.torontopearson.com.
About the Greater Toronto Airports Authority
The GTAA is the operator of Toronto Pearson International Airport.