OTTAWA INTERNATIONAL AIRPORT AUTHORITY MAINTAINS ITS FOCUS
November 6th, 2003 (Ottawa) – Ottawa International Airport Authority today released its financial results for the third quarter of 2003.
For the nine months ended September 30, 2003, revenues exceeded expenses by $13.9 million as compared to $9.7 million for the comparable nine months in 2002. The Airport Improvement Fee (AIF) had the most significant impact on the operating results of the Authority.
Ottawa Airport saw an increase in passenger volumes in Q1, however passenger volumes were 2.1% lower in the second quarter and 0.9% lower in the third quarter than in the comparable quarters last year. The overall result to the end of September showed an increase of 0.3% over last year’s result.
The Authority generated $46.0 million in total revenues in the nine months ended September 30th, 2003 compared to $41.3 million in the comparable period in 2002. Aeronautical revenues including terminal fees, loading bridge charges, and landing fees charged to air carriers increased by 0.6% over the same period in 2002. Airport Improvement Fees increased by 43% from $10.2 million in the first nine months of 2002 to $14.6 million in the same period of 2003.
Total expenses increased by $0.5 million from $31.6 million in the first nine months of 2002 to $32.1 million in the first nine months of 2003. Expenses related to the filing of Air Canada for bankruptcy protection, higher costs for insurance and energy consumption, higher costs of employee benefit plans, and security costs not covered by CATSA contributed to the increase in expenses and were partially offset by a decrease in the amount of interest expensed.
In accordance with the Authority’s mandate, all earnings are retained and reinvested in airport operations and development, including investment in capital expenditures to meet ongoing operating requirements. During the first nine months of 2003, excluding capitalized interest, the Authority made cash payments of $82 million for capital expenditures related to the AEP and reduced its expenditure levels on maintenance capital items to approximately $0.3 million.
The AIF was increased from $10.00 to $15.00 per enplaned passenger on January 1st of this year. The increase was implemented earlier than planned due to the declining passenger rates that have been experienced since 2001. Airport improvement fees are being used exclusively to pay for the expansion of Ottawa Airport, including servicing the Authority’s related May 2002 bond offering.
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