2013 Financial Review
The Airport Authority earns revenue from three main sources:
The Airport Authority collects landing and terminal fees to recover the operating and capital costs related to airline operations. This revenue amounted to $121.5 million in 2013, an increase of $1.2 million from $120.3 million in 2012.
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 $189.5 million in 2013, an increase of $13.3 million from $176.2 million in 2012, due mainly to increased concessions, sale of Automated Passport Control (APC) kiosks to other airports, contribution and land lease 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 AIF. Total revenue earned from the fee in 2013 was $122.3 million, an increase of $15.2 million from $107.1 million in 2012, due mainly to the full year impact of the $5 AIF rate increase for travel outside of B.C. and the Yukon that was implemented on May 1, 2012.
Total excess of revenue over expenses, which includes amortization, was $97.1 million in 2013, an increase of $12.2 million from $84.9 million in 2012.
During 2013, the Airport Authority invested $186.0 million in capital projects. The capital projects included redevelopment of the Domestic Terminal’s A and B Piers, baggage system upgrades, infrastructure upgrades, Airside Operations Building, Integrated Airport Operations Centre and the corporate systems project.
In order to pay for these capital projects, the following amounts were used:
- Net cash flow (excluding AIF) of $88.7 million.
- Net AIF in the amount of $117.4 million.
These amounts in total were more than sufficient to pay for the 2013 capital project costs, leaving $162.3 million in cash available to pay for capital projects in 2014 and future years.