GTAA reports second quarter results

TORONTO, Aug. 11 /CNW/ - The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the six-month period ending June 30, 2010. Aviation activity continued to improve through the second quarter of 2010 with a total of 15.4 million passengers processed at Toronto Pearson International Airport in the first six months of 2010, a 3.8 per cent increase compared to the same period in 2009. For the three-month period ended June 30, 2010, passenger traffic increased by 6.6 per cent when compared to the second quarter of 2009. When compared to the first six months of 2009, during the first half of 2010 air carriers operating at Toronto Pearson have increased (on a net basis) service on a total of 25 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. As a result for the six months ended June 30, 2010, the GTAA reported total revenues of $539.3 million, compared to the $545.2 million in the same 2009 period. This reduction in revenue is partially related to the implementation on January 1, 2010 of the reduction in fees. Total revenues reported during the second quarter of 2010 were $271.2 million, compared to $273.2 in second quarter of 2009.

Total operating expenses incurred during the first six months of 2010 were $236.2 million, including $62.2 million in ground rent paid to the federal government. In the same 2009 period, total operating expenses were $251.8 million. Operating expense savings occurred in such areas as snow removal and professional and contractual services. Total operating expenses reported during the second quarter of 2010 were $117.6 million, a $1.0 million reduction compared to the second quarter of 2009.

Revenues over operating expenses in the first six months of 2010 were $303.1 million, a $9.6 million improvement compared to the same 2009 period. After accounting for debt service and amortization, the GTAA recorded revenues under expenses of $14.3 million for the first half of 2010, compared to revenues under expenses of $8.4 million in the same 2009 period. Debt service was higher in the 2010 period as the GTAA pre-funded 2010 debt maturities. The excess of expenses over revenues was anticipated due to the amortization of airport facilities, a non-cash expense that is not recovered from the airlines operating at Toronto Pearson. For the three-month period ended June 30, 2010, revenue under expenses was $6.6 million compared to revenues over expenses of $5.3 million for the same period in 2009.

On June 7, 2010, the GTAA issued $400 million of Series 2010-1 Medium Term Notes ("MTNs") with a term of thirty years and a coupon of 5.63 per cent. Proceeds of the offering were used to fund debt maturities, capital expenditures and required reserve funds.

Subsequent to the end of the second quarter, on July 19, 2010, the $600 million Series 2000-2 MTNs matured and were repaid using cash on hand, including proceeds from the Series 2010-1 MTNs issue and certain reserve funds.

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 second quarter financial results of the GTAA are discussed in more detail in the Financial Statements of the GTAA for the period ended June 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.

The GTAA is the non-share, not for profit authority that operates Toronto Pearson. All revenue generated by the GTAA is reinvested back into the airport. In 2009, 30.4 million passengers travelled through Toronto Pearson.

For further information: GTAA Media Office, [phone]