Financial Review

Financial Statements

2014 Financial Review

The Airport Authority earns revenue from three main sources:

  • Aeronautical revenue: The Airport Authority collects landing and terminal fees to recover the operating and capital costs related to airline operations. This revenue amounted to $125.6 million in 2014, an increase of $4.1 million from $121.5 million in 2013. In 2011, the Airport Authority introduced the Gateway Incentive Program (GIP), a five-year program that freezes total aeronautical charges at 2010 levels for individual airlines, regardless of actual landed weight and aircraft capacity. This reduces the marginal cost of an additional flight to zero for an airline participating in the GIP and provides an incentive to expand capacity at YVR. The annual increase resulted from a rate increase and net capacity growth for those carriers not participating in the GIP.

  • Non-aeronautical revenue: This includes revenue from concessions, such as duty free and car rentals, as well as car parking and terminal and land rents. Revenue from these sources amounted to $210.0 million in 2014, an increase of $20.5 million from $189.5 million in 2013, due mainly to increased delivery and implementation of our BorderXpress Automated Passport Control (APC) kiosks to other airports, concessions and car parking revenue.

  • Airport Improvement Fee (AIF): The revenue earned from aeronautical and non-aeronautical sources is not sufficient to cover both the costs of operating the airport and the required capital projects. To fund capital projects, the Airport Authority collects an Airport Improvement Fee (AIF). Total revenue earned in 2014 was $129.3 million, an increase of $7.1 million from $122.2 million in 2013, due mainly to the 7.7% growth in passenger traffic over 2013. YVR’s AIF remains one of the lowest of the major airports in Canada and continues to provide one of the lowest fees for travel within BC and the Yukon.

Total excess of revenue over expenses, which includes amortization, was $101.7 million in 2014, an increase of $3.4 million from 2013. When amortization, a non-cash item, is removed, the Airport Authority generated $215.4 million of net cash flow, prior to its investment in capital projects.

During 2014, the Airport Authority invested $277.6 million in capital projects. The capital projects included redevelopment of the Domestic Terminal’s A-B Connector, the Expedited Transfer Facilities, baggage system upgrades, the Airside Operations Building and the installation of the offsite services in support of the Designer Outlet Centre.

In order to pay for these capital projects, the following amounts were used:

  • Net cash flow (excluding AIF) of $91.2 million.
  • Net AIF in the amount of $124.2 million.

These amounts in total were more than sufficient to pay for the 2014 capital project costs, leaving $100.1 million in cash available to pay for capital projects in 2015 and future years.

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