GTAA first quarter results

TORONTO, May 7 /CNW/ - The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the three-month period ending March 31, 2010. There has been some modest improvement in aviation activity. A total of 7.5 million passengers were processed at Toronto Pearson International Airport in the first three months of 2010, a 1.1 per cent increase compared to the same period in 2009.

For the three months ended March 31, 2010, the GTAA reported total revenues of $268.3 million, compared to $272.2 million in the same 2009 period. The decrease is primarily due to the 10% reduction in landing fees and general terminal charges implemented by the GTAA on January 1, 2010. This reduction was possible due to the effect of incentive programs intended to attract new aviation activity to the Airport and the GTAA's ongoing efforts to reduce operating expenses.

Total operating expenses during the first quarter of 2010 were $118.8 million, including $31.2 million in ground rent paid to the federal government. In the first quarter of 2009, total operating expenses were $133.4 million. While the benign winter resulted in 2010 savings compared to the 2009 period, the GTAA also continues to reduce operating expenses on a sustainable basis. Revenues over operating expenses in the first quarter of 2010 were $149.5 million, a $10.7 million improvement compared to the same 2009 period. After accounting for debt service and amortization, the GTAA recorded revenues under expenses of $7.7 million for the quarter, compared to revenues under expenses of $13.7 million in the same 2009 period. The excess of expenses over revenues was anticipated due to the amortization of airport facilities, a non-cash expense which is not recovered from the airlines operating at Toronto Pearson and the seasonality of Airport activity.

On March 19, 2010, the GTAA filed a shelf prospectus qualifying up to $1.5 billion of debt issuance for capital expenditures, reserve funds, debt refinancing and other approved uses through the 25-month period covered by the shelf prospectus.

The focus of the GTAA continues to be on competitiveness, growing the Airport's status as major North American hub, meeting the needs of our customers, both airlines and passengers and ensuring the long-term success of the organization, our airline customers and the regional economy.

The 2010 first quarter financial results of the GTAA are discussed in more detail in the Financial Statements of the GTAA for the period ended March 31, 2010 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.

For further information: GTAA Media Office, [phone]