djustments to aeronautical rates represent inflationary increases and reflect significant ongoing financial impacts of COVID-19.
TORONTO, Nov. 4, 2021 /CNW/ – The downturn in air travel at Toronto Pearson as a result of the COVID-19 pandemic has significantly reduced the Greater Toronto Airports Authority’s (GTAA) revenues and in turn caused the company to incur a large amount of incremental debt to finance its operations. Since the outset of the pandemic, the GTAA has taken many significant steps to responsibly reduce and prioritize operating and capital expenditures, including the reduction in planned 2020 capital spend by $265 million and reducing its workforce by 27 per cent in July, 2020.
To keep pace with inflation, to reflect the benefits of access to Canada’s busiest airport and its proximity to Canada’s largest economic region, and to sustain strong financial liquidity, the GTAA is announcing the following changes to aeronautical rates, effective January 1, 2022:
- Aeronautical rates for commercial aviation will increase by 3%.
- Aeronautical rates for all business and general aviation aircraft, regardless of weight, will increase to $850 per arrival.
Prior to the pandemic and required 2021 increases, commercial aeronautical rates had not increased at Toronto Pearson for 13 years during a period of strong growth at the airport.
“The impact of the pandemic on Toronto Pearson’s business and Canada’s aviation sector continues to be felt,” said Deborah Flint, President and CEO, GTAA. “These modest increases will allow us to keep pace with rising inflationary costs and help to position the GTAA fiscally for recovery, but are mindful of cost pressures still felt across the sector.”
“The GTAA has incurred a net loss of $628 million over the last 18 months,” said Ian Clarke, Chief Financial Officer, GTAA. “Despite the dramatic impacts that the COVID-19 pandemic has had on Toronto Pearson, the GTAA has continued to meet all its financial obligations, including those to its host municipalities, largely through debt financing. These changes align our aeronautical rates with the benefits of access to Canada’s largest airport, situated in the middle of the country’s second-largest employment area.”
This news release contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires the GTAA to make assumptions and is subject to inherent risks and uncertainties. These statements reflect GTAA management’s current beliefs and are based on information currently available to GTAA management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that the GTAA’s assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in the GTAA’s securities regulatory filings, including its most recent Annual Information Form and Management’s Discussion and Analysis, which can be found on SEDAR at www.sedar.com.
About the Greater Toronto Airports Authority
The Greater Toronto Airports Authority is the operator of Toronto – Lester B. Pearson International Airport, Canada’s largest airport and a vital connector of people, businesses and goods. Toronto Pearson has been named “Best Large Airport in North America serving more than 40 million passengers” for four years in a row by Airports Council International (ACI), the global trade representative of the world’s airports. In recognition of its Healthy Airport program, ACI also awarded Toronto Pearson the “Best hygiene measures in North America” award, and Toronto Pearson was the first Canadian airport to receive ACI’s global health accreditation for its response to COVID-19. For more information, please visit Toronto Pearson on Twitter (English and French), Facebook or Instagram.