GTAA REPORTS 2010 THIRD QUARTER RESULTS

TORONTO, Nov. 10 /CNW/ - The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the nine month period ending September 30, 2010.  Aviation activity continued to improve through the third quarter of 2010 with a total of 24.4 million passengers processed at Toronto Pearson International Airport in the first nine months of 2010, a 4.7 per cent increase compared to the same period in 2009.  For the three-month period ended September 30, 2010, passenger traffic increased by 6.3 per cent when compared to the third quarter of 2009.  When compared to the first nine months of 2009, during the first nine months of 2010 air carriers operating at Toronto Pearson have increased (on a net basis) service on a total of 28 routes representing either entirely new destinations served or increases in capacity on existing routes.

In 2009 the GTAA announced that, as the result of the GTAA's on-going efforts to reduce operating expenses, general terminal charges and landing fees for 2010 would be reduced by 10 percent. In addition, the GTAA announced a revised incentive program designed to attract new and expanded air service to Toronto Pearson Airport. For the nine months ended September 30, 2010, the GTAA reported total revenues of $842.4 million, compared to the $842.1 million in the same 2009 period, as fee reductions were offset by the increase in Airport activity.  Total revenues reported during the third quarter of 2010 were $303.1 million, compared to $296.8 for the nine months ended September 30, 2009.

Total operating expenses incurred during the first nine months of 2010 were $355.0 million, including $93.3 million in ground rent paid to the federal government.  In the same 2009 period, total operating expenses were $367.6 million, including $105.5 million in ground rent.  Operating expense savings occurred in such areas as snow removal and professional and contractual services.  Total operating expenses reported during the third quarter of 2010 were $118.8 million, a $2.9 million increase, as compared to the third quarter of 2009.   The increase in operating expense between the two third quarter periods is primarily attributable to one-time costs associated with business transformation and outsourcing initiatives implemented in 2010.

Revenues over operating expenses in the first nine months of 2010 were $487.4 million, $12.9 million improvement compared to the same 2009 period.  After accounting for debt service and amortization, the GTAA recorded revenues over expenses of $15.0 million for the first nine months of 2010, compared to revenues over expenses of $21.3 million in the same 2009 period. Debt service was higher in the 2010 period as the GTAA pre-funded 2010 debt maturities.  For the three-month period ended September 30, 2010, revenue over expenses was $29.4 million compared to revenues over expenses of $29.7 million for the same period in 2009. 

On September 30, 2010, the GTAA announced its aeronautical fees for 2011.  Effective January 1, 2011 the landing fees for cargo aircraft will be reduced by 4.3%.  Also effective January 1, 2011, the general terminal charges and landing fees for passenger airlines will be reduced by 8.1% and 4.5% respectively.  At the same time, the turnaround fee charged for gating aircraft at the Airport will be increased to $66.66 plus $2.41 per seat for each gating operation.  This increase is part of a phasing in of this fee, as endorsed by the air carriers serving Toronto Pearson.  The increase in the turnaround fee largely offsets the decrease in the landing fee and general terminal charge.  The turnaround fee was designed and introduced to give the air carriers serving the Airport the opportunity to reduce costs and to potentially reduce or delay future capital and operating costs incurred by the GTAA through more efficient use of Airport facilities. 

On September 30, 2010 the GTAA also announced that the Airport Improvement Fee ("AIF") for passengers connecting through Toronto Pearson will decrease from $8 to $4, effective January 1, 2011.  The AIF for originating passengers will remain unchanged at $25.

Subsequent to the end of the third quarter, during the month of October, the GTAA disposed of all of its Master Asset Vehicle ("MAV") securities held as a result of the January 2009 restructuring of certain asset backed commercial paper ("ABCP") for net proceeds of $90.6 million.  The ABCP had a face value of $153.9 million and an estimated fair value of $91.7 million.

The focus of the GTAA continues to be on competitiveness, growing the Airport's status as a major North American hub, meeting the needs of our customers, both airlines and passengers and ensuring the long-term success of the organization.  As the GTAA meets these goals it will be enhancing passenger satisfaction and contributing to the success of its airline customers and the regional economy.

The 2010 third quarter financial results of the GTAA are discussed in more detail in the Financial Statements of the GTAA for the period ended September 30, 2010 and 2009 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. Earlier this year, Toronto Pearson was named Most Improved Airport by airlines around the globe.  The 2010 International Air Transport Association Eagle award is a global industry award that recognizes the significant strides made by Toronto Pearson in its commitment to working with the air carrier industry.

For further information:

GTAA Media Office    [phone]