The Greater Toronto Airports Authority (GTAA) has announced its financial and operating results for the second quarter (Q2) and the first half (H1) of 2024, highlighting strong travel demand and significant passenger growth. Passenger activity at Toronto Pearson Airport increased by 0.3 million, or 3.5%, in Q2 2024, rising from 11.4 million to 11.7 million when compared to the same period in 2023. For H1 2024, passenger numbers grew by 1.3 million, or 6.2%, from 21.3 million to 22.6 million compared to H1 2023. This growth was primarily driven by a 10.2% increase in international travel.
Toronto Pearson is undertaking several key programs and initiatives to accommodate increased travel demand while maintaining and improving customer experience. These initiatives include airside pavement restoration, new baggage-handling infrastructure, border modernization projects, fleet equipment revitalization, and the installation of international customs arrival kiosks. These projects aim to revitalize aging assets and support the growing number of passengers.
GTAA reported that total revenues increased by $21.5 million to $485.3 million for Q2 2024 and by $64.4 million to $953.8 million for H1 2024, compared to the same periods in 2023. This increase was primarily due to the growth in passenger and flight activity at Toronto Pearson.
Earnings before interest and financing costs, and amortization (EBITDA), a non-GAAP financial measure, decreased by $10.3 million to $237.2 million for Q2 2024 due to increased operating costs (before amortization) that offset the revenue increase. However, EBITDA for H1 2024 increased by $5.9 million to $456.4 million compared to H1 2023, driven by higher operating activity and increased revenues, partially offset by rising operating costs.
Net income for Q2 2024 rose by $5.3 million to $86.4 million, while H1 2024 saw a net income increase of $30.2 million to $160.1 million compared to the same period in 2023. This growth was attributed to higher revenues from increased operating activity and reduced interest expenses, which were partially offset by increased operating costs.
Free cash flow decreased by $60.8 million to $39.9 million for Q2 2024 and by $111.9 million to $157.0 million for H1 2024 compared to the same periods in 2023. This decline was primarily driven by reduced cash flows from operations, decreased funds from the Airport Critical Infrastructure Program, and increased capital expenditures. These expenditures are being utilized to improve facilities and enable growth while maintaining quality customer experiences and moderate debt levels.
GTAA’s commitment to maintaining and improving infrastructure, coupled with strong travel demand, positions Toronto Pearson for continued growth and success. As the airport prepares for future increases in passenger numbers, these initiatives will help sustain its reputation as a leading global hub.
