PASSENGER VOLUMES AT OTTAWA AIRPORT CONTINUE STRONG PACE
The Ottawa International Airport Authority today released its results for Q2 2007.
Perhaps the biggest story is about passenger volumes which are in continued growth mode. The most significant growth was seen in the international sector at 12.2% in the quarter while domestic traffic grew by 8.1% and transborder by 4.4%, for a total of 2,066,255 passenger movements through the airport in the first six months, compared to 1,931,725 for the corresponding period in 2006. The net result was an overall increase of 7.0%.
For the first half of 2007, earnings before depreciation of $8.8 million were ahead of plan and higher than earnings before depreciation of $5.2 million for the same period in 2006. After deducting depreciation, revenues for the first half of 2007 exceeded expenses by $1.5 million.
“Passenger volumes to date in 2007 continue to grow at a strong pace” said Paul Benoit, Authority President and CEO. “The numbers confirm that Ottawa-Gatineau is a strong market with a healthy economic outlook, and they support the Authority’s decision to expand the terminal earlier than anticipated.”
The Authority generated $41.5 million in revenues in the first six months of 2007 as compared to $38.1 million during the first half of 2006. Increased passenger traffic resulted in a 7.5% increase in airport improvement fees (AIFs) for the period for a total of $13.5 million. Aeronautical revenues including terminal fees, loading bridge charges and landing fees charged to carriers were 7.4% higher at $14.3 million, as compared to $13.3 million for the same period in 2006.
Total expenses before depreciation decreased to $32.7 million in the first six months of 2007 from $32.9 million in 2006. During the period, the Authority paid a total of $5.8 million in ground rent to the federal government, which was 7.6% lower than rent paid for the same period in 2006. This decrease is in keeping with the new rent formula announced in 2005.
During the period, the Authority made cash payments of $20.5 million for major capital expenditures, related to the Airport Expansion Program Phase II. An additional $1.4 million was spent on maintenance capital expenditures.
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 state-of-the-art passenger terminal building opened for business on October 12, 2003, and is being expanded to accommodate growth in passenger volumes.