OTTAWA AIRPORT AUTHORITY ANNOUNCES Q2 RESULTS PASSENGER VOLUMES FLYING HIGH
The Ottawa International Airport Authority today released its financial results for the second quarter of 2004.
For the six months ended June 30, 2004, revenues exceeded expenses before amortization by $4.1 million as compared to $10.2 million for the comparable six months in 2003. An increase in the amount of interest expense reflected in the statement of operations was the largest factor impacting results. Amortization increased from $1.7 million in the first six months of 2003 to $6.5 million in the first six months of 2004 to reflect depreciation of the new terminal facility over its estimated economic life. Amortization brought the net earnings of the Authority to a loss of $2.4 million versus earnings of $8.6 million for the first six months of 2003.
The Ottawa Airport saw an 11.2% increase in passenger volumes to the end of the second quarter of 2004 compared to the same period in 2003. Travel increased to all sectors as follows: domestic increased 9.1%, transborder 12.4%, and international 31.4%. There were a total of 1,789,629 enplaned and deplaned passengers in the first half of 2004, which is on track with record volumes experienced pre-September 11, 2001.
The Authority generated $34.2 million in total in the six months, ended June 30, 2004, compared to $30.6 million in the first six months of 2003. All revenues reflect the positive impacts of higher passenger volumes. Aeronautical revenues including terminal fees, loading bridge charges, and landing fees charged to air carriers, increased by 20% over 2003 figures. The increase was due in part to increased charter activity to sunshine destinations during the winter season.
Total expenses before amortization increased from $20.4 million in the first six months of 2003 to $30.0 million in the first six months of 2004. Interest expense accounted for $6.0 million of the increase.
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 new state-of-the-art passenger terminal building opened for business on October 12, 2003.
Ottawa Airport Authority