Second Quarter Results Show Increase In Passenger Traffic
July 29, 2010
Further to yesterday's blog about our quarterly employee communication session here at WAA, the Winnipeg Free Press has written about our second quarter results and the rise in passenger traffic at the airport.
Below is Murray McNeil's article, which helps to break down the numbers and the importance of increasing passenger traffic at the airport.
Passenger traffic taking off at Winnipeg airport
Business travel to U.S. on the rise: official
By: Murray McNeill
PASSENGERS volumes are picking up at Winnipeg's Richardson International Airport and many of those extra customers are flying south, a senior official said Tuesday.
Barry Rempel, president and CEO of the Winnipeg Airports Authority said although passenger traffic was down slightly through the first four months of the year, it's been on an upward trajectory since May.
"This month, overall, we're about 2.4 per cent up," he said, with the bulk of the increase coming from increased travel between Canada and the United States.
"We're seeing about seven and a half per cent growth to the U.S.," Rempel said, and most of that increase is in business travellers.
Rempel said he assumes some of that has to do with the strengthening of the local economy.
He also noted WestJet, Delta and United Airlines have all added extra capacity on their flights between the two countries, so that's also likely contributing to the increase.
Asked if he expects that trend to continue through the second half of the year, Rempel said: "It's certainly looking that way from everything we're seeing."
Rempel was commenting after the airport authority released its second-quarter financial results Tuesday.
They showed a slight decline in passenger traffic for the quarter -- down 0.2 per cent to 823,300 passengers. But Rempel said that was due to the lower volumes in April.
"We finished the quarter quite strong."
Revenues for the quarter grew by 6.5 per cent to $19.6 million from $18.4 million in the same period in 2009.
Net earnings were down by 21.6 per cent to $6.9 million from $8.8 million. But Rempel attributed that to increased interest payments arising from the construction of the new air terminal building that's scheduled to open later this year.
He said a better indicator of the airport authority's operating performance is its earnings before interest, income taxes, depreciation and amortization (EBITDA).
That figure was up six per cent to $10.6 million.