TORONTO - Soaring traffic levels at Toronto's island airport led to a sharp rise in 2010 profits at the city's port authority, the organization said Friday.
The Billy Bishop airport, home to both the regional arm of Air Canada (TSX:AC) as well as fast-growing Porter Airlines, experienced a surge in passenger traffic that drove net income up to $7.1 million last year, the Toronto Port Authority said Friday.
The statistics, released Friday, don't include Air Canada, which began operating at the airport only a few months ago.
The profit represented a five-fold increase from year-earlier levels and marked the third straight year the port authority was in the black.
Airport revenue soared 74 per cent on a 40 per cent spike in year-over-year passenger traffic.
Porter had exclusive rights to land at Billy Bishop airport in 2010, and the airline's steadily increasing load factor attests to the rise in passenger activity at the facility near the city centre.
Earlier this year, regional carrier Air Canada Express began operating flights to the airport. The airline recently won the right to 30 of the airport's 90 slots. Porter retains 44 of those spots, while 16 went to U.S.-based Continental (NYSE:CAL).
"This level of profitability bodes well for the year to come," Port Authority chairman mark McQueen said in a statement.
"After we pay royalties to Ottawa and taxes to City Hall, every profit dollar is reinvested in the business. This robust financial picture allows us to make the investments that our passengers and business partners want, invest in significant improvements for neighbouring communities, and continue our commitment to environmental sustainability."
Besides the island airport, the Toronto Port Authority operates two marine terminals as well as the Outer Harbour Marina. the federal body provides transportation, distribution, storage and container services to businesses.
