AIRPORT AUTHORITY REPORTS A STRONG FIRST QUARTER FOR 2006

Release date: 
12 June 2006 :00am
June 12, 2006 (Ottawa) – The Ottawa International Airport Authority today released its results for Q1 2006.

Due in large part to an excellent charter season, first quarter passenger volumes of 973,462 were 1.8% higher than the same quarter in 2005: To break it down, domestic traffic decreased by 2.0%; transborder increased by 4.5%; and international increased by 21.4%.

“We are very pleased with the results for first quarter” said Paul Benoit, Airport Authority President and CEO. He went on to say that, “In fact, passenger volumes for March were the best in the history of the Ottawa Airport for a single month, with more than 350,000 enplaned and deplaned passengers travelling through the airport”.

Financial results for the quarter were equally positive with earnings before depreciation of $2.7 million compared to $2.2 million for the same period in 2005.

Revenues

The Authority generated $19.5 million in revenues in Q1 as compared to $18.1 million in Q1 2005. Increased passenger traffic resulted in a 6.7% increase in airport improvement fees (AIFs) for the quarter for a total of 6.3 million. Aeronautical revenues represented the largest source of revenues for the Authority in 2005. At $7.0 million in the quarter, total aeronautical revenues, which include terminal fees, loading bridge charges and landing fees charged to carriers were 9% higher than for the same period in 2005.

Expenses

Total expenses before depreciation increased from $15.9 million in the first three months of 2005 to $16.8 million in 2006. The Authority experienced its first reduction in rent payable to the Government of Canada resulting from the reduction formula announced by Transport Canada in May 2005; rent decreased by 3.6% to $3.1 million for the quarter. Further reductions will be phased in gradually over a transition period between 2006 and 2010.

Capital Expenditures

During the quarter, the Authority made cash payments of $2.3 million for major capital expenditures, related to the Airport Expansion Program Phase II. An additional $0.4 million was spent on maintenance capital expenditures.

OMCIAA operates Ottawa International Airport without government subsidies under a 60-year lease transfer agreement with Transport Canada. The OMCIAA’s mandate is to manage, operate and develop airport facilities and lands in support of the economic growth of the National Capital Region. Its state-of-the-art passenger terminal building opened for business on October 12, 2003, and is being expanded to accommodate growth in passenger volumes.

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