OTTAWA AIRPORT AUTHORITY ANNOUNCES Q3 RESULTS - 2004 PASSENGER VOLUMES ON TRACK FOR RECORD YEAR
Ottawa International Airport Authority today released its financial results for the third quarter of 2004.
For the nine months ended September 30, 2004, on an operating basis, revenues exceeded expenses before amortization by $7.1 million as compared to $16.4 million for the comparable nine 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 $2.5 million in the first nine months of 2003 to $9.8 million in the first nine months of 2004 to reflect depreciation of the new terminal facility over its estimated economic life. Accounting rules required the Authority to commence depreciating the cost of the new facility, and cease capitalizing interest costs when it opened the new facility in October 2003, and accordingly, the statement of operations reflects significant increases in amortization over the comparable period in 2003.
The Ottawa International Airport saw a 10.5% increase in passenger volumes to the end of the third quarter of 2004 compared to the same period in 2003. Travel increased to all sectors as follows: domestic increased 9.2%, transborder 10.0%, and international 29.6%. There were a total of 2,684,590 enplaned and deplaned passengers in the first nine months of 2004.
The Authority generated $51.6 million in total revenues in the nine months ended September 30, 2004, compared to $46.0 million in the first nine months of 2003. The increased revenues are related to the higher passenger volumes experienced year to date. Aeronautical revenues including terminal fees, loading bridge charges, and landing fees charged to air carriers, increased by 16.5% over 2003 figures. The increase was due in part to increased charter activity to southern destinations and increased activity by low cost carriers.
Total expenses before amortization increased from $29.6 million in the first nine months of 2003 to $44.5 million in the first nine months of 2004. Interest expense accounted for $10.0 million of the increase. In addition, amortization increased from $2.5 million in 2003 to $9.8 million in 2004 due to depreciation of the new terminal building and support facilities which started on October 12, 2003.
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