Ottawa Airport Authority 2002 Second Quarter Results

Release date: 
15 August 2002 :00am
Ottawa –– Ottawa International Airport Authority (OIAA) today released its financial results for the second quarter of 2002.

Financial review
For the quarter ended June 30th, 2002, revenues exceeded expenses by $3,469,000 as compared to $5,721,000 in the second quarter of 2001. Year to date revenues of $26,269,000 exceed year to date expenses of $19,531,000 by $6,738,000.

“Our recent results may pale in comparison to the exceptional growth in both revenues and passenger traffic we experienced during the first half of 2001,” said Mr. Paul Benoit, President and CEO of the Ottawa Airport Authority, “but overall, the Airport Authority is tracking favourably against projections, our cost-control measures remain in effect, our revenues are improving, and we are in a solid financial position. We also anticipate that, by the end of the year, the decline in passenger traffic will largely have reversed the trends set in late 2001.”

Revenues
During the second quarter, the Authority generated total revenues of $13,474,000 compared to $14,055,000 in the second quarter of 2001.

Aeronautical revenues represent the largest source of revenues for the Authority. At
$5,179,000 for the second quarter, total aeronautical revenues, which include terminal fees, loading bridge charges, and landing fees charged to air carriers, were down from
$5,361,000 from the second quarter of 2001.

Airport improvement fees decreased from $3,930,000 (second quarter of 2001) to $3,450,000 in the past quarter due to decreased passenger volumes.

Expenses
For each quarter in 2002, rent to the Crown has increased by more than half a million dollars ($541,000) compared to the comparable quarters a year ago. As a result of the
$ 270 million Bond issue completed in May 2002, interest expense increased sharply in the second quarter of 2002 by $1,107,000 compared to the second quarter of 2001. Total expenses, however, only increased by $1,763,000 as Airport Authority cost-saving measures in other categories remained in effect. Total expenses were $10,097,000 for the past quarter as compared to $8,334,000 in the second quarter of 2001.

Passenger traffic
Passenger volumes have not yet returned to the high growth levels recorded prior to September 11, but are comparable to passenger levels last seen in 2000. The number of enplaned/deplaned passengers for the first 2 quarters of 2002 was 1,595,662, a decrease of 12 % from the first 2 quarters of 2001 (1,813,872).

As of December 31st, 2001, passenger traffic had grown by 19% since the Ottawa Airport Authority took over management and operations of the airport. For the first time in the Airport’s history, passengers enjoyed a choice of 28 direct destinations in 2001.

OMCIAA operates Ottawa International Airport without government subsidies under a
60-year lease transfer agreement with Transport Canada. The Authority’s mandate is to manage, operate and develop Airport facilities and lands in support of the economic growth of the National Capital Region. Its 40-year old terminal building was last expanded in 1987. Since that time, passenger traffic has increased over 35%.

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For additional information, please contact:
Paul Benoit, (613) 248-2001
President and CEO