Q1 2023 financials and passenger traffic highlights |
At it’s Annual Public Meeting on May 3, the GTAA reported its financial and operating results for the first quarter of 2023. Passenger activity significantly increased when compared to the same periods in 2022, given the easing of pandemic-related travel restrictions and pent-up travel demand.
Highlights:
- Passenger activity increased by 4.8 million or 90.4 per cent to 10 million, when compared to the same periods of 2022. During the first quarter of 2023, passenger activity recovered 86 per cent of the first quarter of 2019 passenger activity.
- During Q1 2023, the GTAA recorded a net income of $48.8 million. It is good that we are now generating positive net income, however we continue to have significant debt which dramatically increased during the pandemic.
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Although debt decreased $411 million from $7.2 billion in 2021, it still remains $390 million greater than 2019, amounting to a total debt of $6.8 billion.
We look forward to passenger traffic returning to its pre-pandemic level and GTAA is working with its partners to ensure that we are ready for the summer months and for the rest of the year.
The financial results are available in more detail in the GTAA’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis, which are available at www.torontopearson.com and on SEDAR at www.sedar.com.
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Toronto Pearson welcomes federal measures to improve passengers’ journey and support recovery |
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In response to the federal government’s March 28 budget release, GTAA issued a statement that Toronto Pearson welcomes the budget, including new measures intended to reduce passenger wait times, support better data sharing and public reporting, change the Customs Act to streamline and leverage technology and support more comprehensive digital tools. These steps will improve the passenger journey and support our sector’s recovery. Toronto Pearson is ready to work with the federal government to support these changes and will deliver a better experience for Canadian travellers and visitors to the country. |
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Transport Canada: Airport Modernization Framework submission |
The Greater Toronto Airports Authority (GTAA) participated in the recently completed Airport Modernization Framework 30-day consultation process initiated by Transport Canada. It was an opportunity to contribute ideas and perspectives on Canada’s national air transportation system. Toronto Pearson is committed to restoring consumer confidence in air travel and earning the trust of passengers and the public. Together, we can achieve a new standard of responsibility, performance and quality in the aviation industry, making Canadians proud.
In the 1990s, airport governance and management for Toronto Pearson International Airport was transferred from the federal government to the GTAA as a local not-for-profit airport authority, under a 60-year lease agreement. As part of the lease agreement, airports pay rent to the federal government, which is a percentage of airport revenues annually. Toronto Pearson paid more than $170 million in rent in 2019, $15.6 million in 2020, $64.8 in 2021 and $163.7 million in 2022. The GTAA raises funds through the capital bond market, borrowing against its revenues. We continued to pay rent to the federal government during the pandemic and continued to take on additional debt at a time when we had no passengers. Despite adding additional debt during the pandemic, we maintained our credit rating.
Coming out of the pandemic, we appreciate the need for reflection and action to drive more accountability for all players in the Canadian transportation ecosystem, including airports. Canadians and visitors to Canada expect and deserve a leading experience, and Pearson is committed to driving improvements to make Toronto Pearson one of the best airports in the world. It is also important to recognize how unique last year’s environment was, with a once-in-an-era level of restart. Never has a major hub airport experienced a 180-per cent passenger growth rate in such a short period of time. This is an important consideration when we look at potential ways to modernize the system. Government must exercise caution not to make permanent policy changes for transitionary impacts.
There are many areas where the airport sector and the federal government agree, including the need for shared accountabilities and public performance reporting. However, there are two areas of concern that could have unintended consequences: - Economic regulation of airport fees;
- Federal appointment of the Chair of the airport’s Board of Directors.
Over the next several years, Pearson will require multi-billion-dollar capital investment to keep pace with demand, remain competitive with other international airports and support the transition to a green economy. Any perceived or real interference by government that calls into question airport authorities’ independence has the potential to create both unnecessary delays and increase the cost of borrowing by millions of dollars. The slowing of investment in critical airport infrastructure will in turn affect jobs, tourism, and GDP in Ontario.
Importance of fee-setting independence: Fee-setting independence has been critical to the 30-year success of Canada’s airport model, which has delivered some of the best aviation infrastructure in the world. The GTAA has prudently managed the setting of fees. After 2009, airline fees and charges were kept flat for 10 years, which aligned with years of significant passenger growth and record-breaking airline profitability. Fees were increased between three and four per cent in 2021-2023 because of the impacts of COVID-19, but we have been able to keep these increases below the rate of inflation. The financial sector places a strong premium on our independence in setting fees, and this allows us to access favourable market rates when borrowing.
There is a concern that the GTAA would immediately be put on credit watch and downgraded by as much as two notches. A downgraded view of the sector is costly financially. These are real and significant dollars that should be invested to benefit the economy in and around the airport. At a time when investment in airports is critical to support job growth, investment, trade and net-zero targets, the result of government oversight on fees risks increasing the cost of borrowing, delaying infrastructure investments, and raising the cost of travel for Canadians.
There are better and easier ways to drive greater accountability and bolster consultation with our airline partners on airport fees and charges. To avoid unintended consequences, the government could amend airport leases to codify consultation obligations on airport rates and charges. This solution avoids the unintended consequences of legislation and is based on existing and effective consultative practices and meets the government’s intent to drive greater accountability.
Impact of proposed governance changes: Local control and input have been critical to the success of Canada’s airport model. As a corporation without share capital, the GTAA has Board members who represent the diversity of the Greater Toronto Area and the major economic sectors in the region that we serve. Our leaders work to identify the needs of our communities and determine how they can best be addressed. The GTAA is governed by a Board consisting of 15 Directors elected by the GTAA’s members. Directors serve terms of up to three years and are eligible for re-election to a maximum of nine years. The Board is drawn from the five local municipal regions, boards of trade and professional organizations, as well as provincial and federal appointees.
More than 30 years ago, the federal government began divesting Canada’s airports so they would be flexible, connected to their communities and capable of growing to meet passenger demand. Those not-for-profit businesses have been guided by local community leaders, invested over $30 billion in infrastructure and paid billions in rent to Ottawa — delivering enormous value to taxpayers and benefits to the federal treasury. There’s value in today’s community-led model, and it should be upheld. The Federal Minister appointing the Chair creates uncertainty in the market, loss of local control and decision-making, and could result in higher costs for travellers.
Creating a better aviation sector in Canada: Coming out of the sector’s most challenged years on record, Pearson’s goal is to return to being a global leader in aviation by delivering a globally competitive, high-value and high-quality airport that provides a strong value proposition for consumers, airlines, government, employees, and community. The airport sector understands the importance of trust, accountability, and transparency and, is committed to working closely with industry partners, government and embracing a collaborative approach to improve the overall travel experience.
The Canadian Air Sector Model has yielded great results. Through strategic and effective execution, Toronto Pearson is a global gateway that gives Canadians access to more international destinations and competitive pricing than they would otherwise have access to. This is directly tied to Canada’s agile, commercially enabled and business-driven model. There is support for change, but it must be pursued with caution, as the United States and other G7 countries are actively investing in and strengthening their air sectors’ competitiveness. Pearson is the fourth-largest gateway to the United States and an unprecedented five-time award winner as best large airport in North America, an award given by Airports Council International’s (ACI) Airport Service Quality (ASQ) program. Pearson is expected to rebound again to deliver outsized economic, reputational and network benefits for Canada.
Please see attached copy of our full submission for your reference. |
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Advocacy in Washington D.C. |
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In anticipation of the upcoming summer travel season, Toronto Pearson officials led by Ms. Deborah Flint, President and CEO of GTAA, have been engaging in consistent dialogue with U.S. policymakers in Washington. As the fourth largest port of entry by air into the U.S behind JFK, MIA, and LAX, these meetings were designed to raise awareness and gather support for the vital preclearance program.
Toronto Pearson representatives have been engaged in discussions with officials from U.S. Customs and Border Patrol (USCBP), the U.S. House of Representatives, and the U.S. Senate about the importance of preclearance and the need to ensure the program is properly resourced. Notably, Ms. Flint met with Congressman Brian Higgins of New York, Co-chair of the Northern Border Caucus, to address the enduring bond between the U.S. and Canada and the need for seamless border transit. Both agreed on the essential role of reliable and predictable ports of entry and welcomed the resumption of NEXUS enrollments.
Ms. Flint also met with Congressman Rick Larsen, Ranking Member of the House Transportation and Infrastructure Committee. Larsen, who has previously visited the Toronto Pearson preclearance facility, to discuss the importance of adequate staffing and other resources at U.S. ports, especially in anticipation of high-profile international events such as the 2026 World Cup.
As part of our advocacy in Washington D.C. Toronto Pearson, the Canadian Embassy, and the Canadian Airports Council (CAC) hosted a multi-sector breakfast meeting on March 29th to discuss travel between Canada and the U.S. The forum saw the participation of industry leaders, government representatives, academia, and other Canadian airports.
Toronto Pearson also met with officials from USCBP, including Deputy Executive Assistant Commissioner Diane Sabatino. It was clear that there's a shared goal to support the preclearance operations in Toronto, growth in the use of Mobile Passport Control (MPC), and work towards a return to pre-pandemic staffing and hours of operations, particularly in time for peak summer travel. Toronto Pearson continues to be below pre-pandemic staffing levels and hours of operations and has been working with CBP HQ and local to develop plans to ensure adequate resources are available for Summer 2023 and beyond.
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NEXUS enrolment centre at Pearson reopened |
On April 24, the NEXUS enrolment office located in Terminal 1 reopened. Travel is back in full swing and now getting to the United States is even easier. If your application has been conditionally approved, you can now book your interview using the TTP scheduler.
Canadian airport enrolment centres, including the one at Pearson, will be staffed with Canada Border Services Agency (CBSA) officers, who will complete the Canadian portion of the NEXUS interview. The U.S. interviews will be conducted by Customs and Border Protection (CBP) at Canadian airport preclearance locations for applicants departing to the U.S. This U.S. interview can be completed at any Canadian airport where the U.S. is currently conducting preclearance operations. More details and information on how to apply are available on CBSA’s website.
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Celebrating our first ACI accreditation for public health & safety readiness |
We’re celebrating our first-ever accreditation from Airports Council International (ACI) for Public Health & Safety Readiness, which evaluates our public health and safety measures against international recommendations.
Safety has always been our top priority, and the COVID-19 pandemic emphasized the need to be prepared for unforeseen health and safety crises. We’ve done a lot in the last two years, including innovations that make the airport environment even safer and more predictable. This award from ACI is also confirmation that our most valuable asset, our employees, are committed to upholding the highest standards of health and safety. Read more.
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Toronto Pearson gears up for the busy summer travel season |
On May 8th, the President and CEO of the GTAA, Deborah Flint, announced the comprehensive measures that Toronto Pearson is implementing to support a seamless, predictable, and enjoyable passenger experience during summer travel.
In response to the challenges encountered last summer and to enhance efficiency, and create a positive passenger experience, Toronto Pearson has initiated a series of enhancements through digital innovations, transparency, and staffing increases. The airport’s modernization plans were fast-tracked by investing in innovative technologies that are already assisting passengers navigate through the airport more easily. Learn more about the innovations and processes that will help smooth the travel experience at Pearson airport for this summer.
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The Restricted Area Identity Card (RAIC) is required for most airport employees, and it takes time for job candidates to pass the security requirements. To address this challenge, with the support of Transport Canada, Toronto Pearson piloted the RAIC-Ready Pilot Program to help build a talent pipeline allowing prospective employees to obtain clearance for a RAIC and enter a pool of pre-cleared candidates before applying for a job at the airport.
On April 27, the first cohort of the RAIC-Ready Pilot Program concluded with massive success. Out of 19 candidates who went through the first cohort in April 2023, 18 have already received multiple offers for jobs at Toronto Pearson with various employers. 15 of them received their security clearance in less than two weeks post-program completion. Two cohorts remain for this year. |
Verified Traveller Program at Toronto Pearson |
On May 23, Toronto Pearson welcomed Minister Alghabra to Pearson to announce that the Canadian Air Transport Security Authority (CATSA) will soon be launching a new Verified Traveller Program that will offer a faster and more efficient screening experience for eligible travellers. The new program provides eligible travellers with select benefits at security screening checkpoints, such as keeping laptops, large electronics and compliant liquids and gels in their carry-on, and keeping their shoes, belts and light jackets on. This new Verified Traveller Program will launch on June 21, 2023, and dedicated screening lines will be available at Toronto Pearson at domestic and international CATSA checkpoints. The program will also be available at Vancouver, Edmonton, Calgary, Winnipeg, and Montreal airports. Learn more.
Innovate. Travel. Canada (ITC), a coalition of business leaders whose operations rely on seamless travel, issued a support statement welcoming the Minister’s announcement, reaffirming their unwavering commitment to working with government and aviation sector partners to make this new program a success. Read more. |
Full-service dispensary at DrugSmart Pharmacy reopening in Terminal 1 |
On May 1, the dispensary within the DrugSmart Pharmacy located on Terminal 1's second level (before security) is reopened. A pharmacist will now be available from 10:00 a.m. to 6:00 p.m., Monday through Friday. DrugSmart Pharmacy's full-service dispensary services include automatic refills, free delivery, on-site injections, flu shots, medication reviews, pre-packaged medications, compounding, over-the-counter medications, and COVID-19 testing for travel purposes.
Employees receive a 10 per cent discount, excluding prescriptions and lottery tickets. Employees who become new rewards program members also get a 2,500-point sign-up bonus that can be used like cash for their purchases. Learn More. |
Our passengers + employees |
New travel tools for autism and other diverse needs |
In partnership with Autism Ontario and Magnusmode, we’ve introduced new travel tools for autism and other diverse needs at torontopearson.com to enable a smooth and enjoyable travel experience.
These tools include an interactive step-by-step guide with a checklist for each step while travelling through the airport and a children’s activity book to prepare for their upcoming trip, from arriving at the airport to boarding a plane. Learn more. |
Breaking down language barriers with LanguageLine |
LanguageLine is a live language translation support application used to help our staff communicate effectively with passengers who are deaf or hard of hearing, as well as those who have a limited knowledge of English.
Passengers can connect directly to an interpreter in the language they need. Video remote interpreting is available for American sign language, British sign language and the top 39 languages spoken in the United States. Audio interpreting is available in more than 240 languages 24 hours, seven days a week. Learn more. |
YYZ welcomes guide and assistance dogs in training |
On April 26, we proudly celebrated International Guide Dog Day in partnership with WestJet and Lions Foundation of Canada Dog Guides, providing a training facility for new guide and assistance dogs for the past two years. The dogs and their trainers in Terminal 3 familiarized themselves with all aspects of the airport experience, from security screening to boarding an aircraft. At Toronto Pearson, we are committed to providing a smooth and enjoyable airport experience for all, and this partnership is just one example of how we’re continuously working to identify, remove, and prevent barriers for people with disabilities. Learn more. |
Annual public meeting held on May 3 |
Each year, in early May, we hold an Annual Public Meeting to talk about Toronto Pearson International Airport’s management, operation and maintenance. This year’s meeting was held in a hybrid approach with the option to join in-person or virtually. The Chair of the Board, Doug Allingham and the President and Chief Executive Officer, Deborah Flint review the year, and the Chief Financial Officer, J’Maine Chubb, gave an overview of our financial performance. Find our Annual Report and recording of the meeting.
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Mark your calendars for the 2023 Noise Forum meetings |
The Noise Management Forums are a series of briefings, presentations and working groups that are helping Pearson work smarter with its communities and collaborate better with industry partners. You can view the schedule of upcoming meetings here.
A friendly reminder that our neighbours are welcome to attend Pearson Public meetings to learn more about airport operations, hear about noise management efforts, and provide feedback to industry partners. Visit our noise forum webpage to review materials or watch the recording from the April 20 Pearson Public meeting. Another way to learn more about airport operations is by visiting InsightFull, for customized information based on your address as well as reports on operations, complaints, and noise.
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New noise advisory calendar |
Our new noise advisory calendar provides an ‘at-a-glance’ view of regular airside maintenance that could affect airport traffic operations resulting in temporary changes in community noise impacts. The calendar is updated to reflect the latest scheduled work, replacing the noise advisory documents previously issued on a weekly basis. Learn more.
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Toronto Pearson invests in neighbourhood-wide urban agriculture strategy in Rexdale |
We believe that being a good neighbour means mitigating the impact of our operations on surrounding communities. That’s why we have partnered with Toronto and Region Conservation Authority’s (TRCA) Sustainable Neighbourhood Action Program (SNAP) and Partners in Project Green (PPG) towards the development and initial implementation of a Neighbourhood-wide Urban Agriculture Strategy in Rexdale, through Toronto and Region Conservation Authority’s (TRCA) Sustainable Neighbourhood Action Program (SNAP) and Partners in Project Green (PPG). Learn more.
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Our Summer Street Program is back! |
After a three-year pause, we’re thrilled to welcome back our Summer Student Street Team for 2023. Our Summer Street Team helps us to connect with our neighbours and to keep the conversation going with the community we call home. Look for us at a number of events across the region. Follow where we will be and even invite us to your own community event. Learn more.
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Ambition Takes Flight exhibit |
If you’re working in the Terminal 1 baggage hall, travellers waiting for their luggage in Terminal 1’s baggage claim area will discover something inspiring on which to rest their eyes: new art by seven local artists that capture the endless possibility of travel and ambition.
Ambition Takes Flight consists of paintings, sculptures and mixed media works by a diverse group of Canadian artists. These creations offer travelers waiting for their luggage a moment to dream about their own journeys and connections. A total of 157 artists originally applied to have their work shown atop baggage carousels six through 11, and carousel 13. In partnership with CIBC, the exhibit runs throughout this year. Learn more.
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Please refer to the GTAA’s Privacy Policy for more information regarding the manner in which we treat personal information. |
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