The Greater Toronto Airports Authority (GTAA) reported positive financial and operating results for the first quarter of 2024.
Passenger activity surged by 8.7%, reaching 10.9 million compared to 10 million in the same period of 2023. This growth reflects a continued rebound in travel demand.
“The first quarter at Toronto Pearson was marked by significant passenger growth, fueled by an increasingly resilient travel sector,” said Deborah Flint, President and CEO of the GTAA.
“We’re pleased to see our financial performance strengthening alongside improvements in customer experience and operational efficiency. On-time departures, for example, have increased by 6% compared to Q1 2023.”
To accommodate this passenger growth, the GTAA plans strategic improvements to airport infrastructure.
These include high-speed taxi lanes for enhanced airfield performance, modernized airfield lighting and control systems, and investments in power generation and energy efficiency initiatives to align with the organization’s net-zero targets.
“These targeted improvements are not only cost-effective but will also bolster our redundancy and overall resilience,” Flint added.
“This positions us to effectively manage the operational demands associated with near-term growth.”
Financial Performance Q1 2024
Financially, the GTAA saw a $42.8 million increase in revenue compared to Q1 2023, reaching $468.5 million.
This rise is primarily attributed to the growth in passenger and flight activity at Toronto Pearson. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also climbed by $16.3 million, reaching $219.2 million.
This increase is due to higher revenues associated with increased operating activity, partially offset by a rise in operating costs before amortization.
Net income rose by $24.8 million to $73.6 million compared to the same period in 2023. This growth stems from higher revenues due to increased operating activity and a decrease in interest expense. However, an increase in operating costs during Q1 2024 partially offset these gains.
Free cash flow decreased by $45.2 million compared to Q1 2023, reaching $117.1 million. This decline is primarily driven by a decrease in funds received under the Airport Capital Assistance Program (ACIP) and an increase in capital expenditures.
These factors were partially mitigated by a rise in cash flows from operations and interest income.
The GTAA is strategically utilizing its cash flow from operations to fund necessary capital expenditures that will enhance airport facilities, ensure continued growth with a focus on quality customer experience, and manage debt levels.
Toronto Pearson International Airport (YYZ)
Toronto Pearson International Airport (YYZ), also known as simply Pearson Airport, is the largest and busiest airport in Canada. Located in Mississauga, Ontario, it serves the Greater Toronto Area and surrounding regions.
As a major international hub, Pearson Airport welcomes passengers from around the world on flights operated by numerous airlines.
The airport boasts two passenger terminals, offering a variety of amenities and services for travelers.
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