Pearson traffic climbs 5.3% as domestic, overseas travel offset U.S. dip

Toronto Pearson welcomed 13.8 million passengers in the third quarter of 2026, up 5.3 per cent from the same period last year, as strong domestic demand and growth in international travel outside North America offset a marginal decline in U.S. travel.

The Greater Toronto Airports Authority (GTAA), which operates Pearson, reported passenger traffic of 37.3 million for the first nine months of the year, an increase of 4.2 per cent from 2025.

Domestic traffic rose 5.8 per cent to 5.5 million passengers during the quarter, while international traffic, which includes U.S. travel, increased 5.1 per cent to 8.3 million.

“Toronto Pearson is connecting Canadians to more destinations around the world as our airline partners add new routes. We are connecting Canadian businesses to global markets, stimulating trade, tourism and jobs across Canada. We are translating those connections into long-term value for passengers, partners, employees and communities,” Deborah Flint, president and CEO of the GTAA, said.

Revenue and earnings rise

Third-quarter revenue reached $626.5 million, up 11.4 per cent year over year, driven primarily by higher rates and fees, aviation activity and passenger traffic.

Net income increased 28.3 per cent to $177.7 million, while earnings before interest and financing costs, and amortization (EBITDA) rose 12.3 per cent to $327.5 million. EBITDA is a non-GAAP financial measure used by the GTAA to assess operating performance.

For the first nine months of 2026, revenue reached approximately $1.72 billion, up 9.3 per cent, while net income increased 9.3 per cent to $347.2 million.

Free cash flow declined four per cent in the quarter to $168.6 million as higher capital spending outweighed gains in operating cash flow and lower net interest expense.

Advancing airport investment

The GTAA said passenger growth and its financial performance are supporting the advancement of LIFT, its long-term investment program to increase Pearson’s capacity and improve the passenger experience.

The authority said it continues to monitor global economic and political conditions and adapt its plans to evolving risks and uncertainty.

Full financial statements and management’s discussion and analysis are available at torontopearson.com and SEDAR+.

Don't miss a single travel story:  subscribe to PAX  today!   Click here to follow PAX on Facebook.