OTTAWA INTERNATIONAL AIRPORT PERFORMS SOLIDLY FOR FIRST HALF OF 2005

Release date: 
12 August 2005 :00am
August 12, 2005 (Ottawa) – The Ottawa International Airport Authority released its unaudited Q2 results for 2005.

For the first six months of 2005, earnings before depreciation and amortization were $5.2 million as compared to $4.1 million for the same six months of 2004.

The airport saw a 2.6% increase in passenger volumes in the second quarter compared to the same quarter in 2004, bringing the overall year to date increase to 5.4% over 2004. All travel sectors experienced increased volumes as follows: domestic 4%; transborder 13.2%; and international 1.4%.

“We’re pleased that the upturn in the industry has been maintained through the spring and beginning of summer”, said Paul Benoit, Airport Authority President and CEO. He continued, “as such, the Airport Authority is solidly on track to meet the objectives that we set for 2005”.
Revenues

The Authority generated $36.3 million in revenues in the first six months of 2005 as compared to $34.2 million in the first six months of 2004.

Airport improvement fees were higher for the period, coming in at $12.2 million compared to $11.1 million for the same period of 2004, as did parking revenues which increased from $3.6 million in 2004 to $4.3 million to date in 2005.

Aeronautical revenues of $12.6 million, including terminal fees, loading bridge charges and landing fees charged to carriers were unchanged from those of 2004.
Expenses

Total expenses before depreciation and amortization increased from $30.1 million in Q2 2004 to $31.2 million in 2005. Ground rent payable to the Government of Canada increased by 11% to $6.5 million in the first six months of 2005.

Capital resources

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 half of 2005, the Authority made cash payments of $2.7 million for major capital expenditures, including the expansion of the parking garage, which is currently in progress, and preliminary work related to Phase II of the Airport Expansion Program (AEP).

Cash and short-term investments of $11.9 million as at June 30, 2005 include short-term investments permitted by the Master Trust Indenture.

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.
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