OTTAWA AIRPORT AUTHORITY REPORTS HIGHER PASSENGER VOLUMES IN FIRST QUARTER
31 May 2004 :00am
For the three months ended March 31, 2004, revenues exceeded expenses before amortization by $1.8 million as compared to $5.4 million for the comparable three 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 $0.8 million in the first quarter of 2003 to $3.1 million in the first quarter of 2004 to reflect depreciation of the new terminal facility over its estimated economic life.
Ottawa Airport saw a 9.7% increase in passenger volumes in the first three months of 2004 compared to the first three months of 2003. Travel increased to all sectors during the quarter as follows: transborder increased 8.9%, international 17.2%, and domestic 8.8%. These passenger volumes are now tracking higher than pre-September 11 levels. The total of 882,610 enplaned and deplaned passengers in the first quarter of 2004 was 0.9% higher than the passenger volume in the first quarter of 2001.
The Authority generated $17.2 million in total revenues in the three months ended
March 31, 2004 compared to $15.9 million in the comparable period in 2003. All revenues, including airport improvements fees, reflect the positive impacts of higher passenger volumes. Aeronautical revenues including terminal fees, loading bridge charges, and landing fees charged to air carriers, increased in the quarter by 18% from the first quarter of 2003 due to a restructuring of fees for new technologies and services provided to these carriers in the new terminal building.
Total expenses before amortization increased from $10.6 million in the first three months of 2003 to $15.4 million in the first three months of 2004. Interest expense accounted for $3.0 million of the increase. In addition, amortization increased from $0.8 million in 2003 to $3.1 million in 2004 due to depreciation of the new terminal building and support facilities starting 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