Ottawa –– The Ottawa International Airport Authority today released its financial results for the third quarter of 2002.

Financial review
For the quarter ended September 30th, 2002, revenues exceeded expenses by $2,966,000 as compared to $3,877,000 in the third quarter of 2001. Year to date revenues of $41,319,000 exceed year to date expenses of $31,615,000 by $9,704,000. All Authority earnings are retained and reinvested in airport operations and development.

“Our results may pale in comparison to the exceptional growth in both revenues and passenger traffic we experienced up until September 11, 2001,” said Mr. Paul Benoit, President and CEO of the Ottawa International Airport Authority. “But overall, the Airport Authority is tracking favourably against projections, we have maintained control over costs, our revenues are improving, and we are in a solid financial position. Based on recent trends, we also anticipate that, by the end of the year, the decline in passenger traffic will largely have reversed the trends set in late 2001.”

Revenues
During the third quarter, the Airport Authority generated total revenues of $14,958,000 compared to $12,692,000 in the third quarter of 2001.

Aeronautical revenues represent the largest source of revenues for the Airport Authority. At $5,449,000 for the third quarter, total aeronautical revenues, which include terminal fees, loading bridge charges, and landing fees charged to air carriers, were up from
$5,176,000 from the third quarter of 2001.

Airport improvement fee revenues increased to $3,525,000 in the third quarter of 2002 from $2,991,000 in the third quarter of 2001 when passenger volumes were affected by the events of September 11. In addition, the Airport Authority has generated interest income of $1,601,000 on funds not yet disbursed, but held for the Authority’s Airport Expansion Program.

Total revenues for the nine months ended September 30, 2002 of $41,319,000 compare to $40,216,000 for the first nine months of 2001.

Expenses
Total expenses including rent and interest were $11,992,000 for the past quarter as compared to $8,815,000 in the third quarter of 2001. For each of the quarters in 2002, rent payable to Transport Canada has increased by $541,000 compared to the comparable quarters a year ago. As a result of the $ 270 million Bond issue completed in May 2002 to secure funds for the Airport Expansion Program, interest expense increased sharply in the third quarter of 2002 to $2,808,000 compared to $98,000 in the third quarter of 2001. Other operating expenses, however, have decreased as Airport Authority cost-saving measures remained in effect to offset increased rent and lowered operating volumes since September 11. Total expenses for the nine months ended September 30, 2002 of $31,615,000 compare to $26,307,000 for the first nine months of 2001.

Passenger traffic
Passenger volumes have not yet returned to the high growth levels recorded prior to September 11, 2001. The number of enplaned/deplaned passengers for the first 3 quarters of 2002 was 2,422,789, a decrease of 8 % from the first 3 quarters of 2001 (2,637,267).

As of December 31st, 2001, passenger traffic had grown by 19% since the Ottawa International Airport Authority took over management and operations of the airport in 1997. For the first time in the Airport’s history, passengers enjoyed a choice of 28 direct destinations in 2001.

The Ottawa Macdonald-Cartier International Airport Authority operates Ottawa International Airport without government subsidies under a 60-year lease transfer agreement with Transport Canada. The Authority’s mandate is to manage, operate and develop Airport facilities and lands in support of the economic growth of the National Capital Region. Its 40-year old terminal building was last expanded in 1987. Since that time, passenger traffic has increased over 35%.

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For additional information, please contact:
Paul Benoit, (613) 248-2050
President and CEO
Ottawa International Airport Authority