Image: Saint John Airport
Passenger volumes at the Saint John Airport (YSJ) are not expected to return to pre-COVID levels until at least 2025.
The airport’s interim president and CEO made the prediction Wednesday during YSJ’s virtual annual general meeting.
“Passenger demand, widespread vaccinations and the removal of travel restrictions will ultimately determine how slow or swift YSJ’s recovery will be,” Greg Hierlihy said during the presentation.
More than 281,000 passengers came through the airport in 2019 and officials had been forecasting more than 500,000 passengers a year by 2025.
However, flight suspensions and COVID restrictions saw passenger volumes plummet to just over 59,000 in 2020, according to the airport’s annual report.
Passenger volumes are expected to make a “slow and steady” recovery over the next few years, said Hierlihy, and are forecast to reach 292,000 in 2025.
“We believe that people will choose to fly again when travel restrictions are lifted and when they feel that it’s safe to do so as a result of widespread vaccinations,” he said.
Commercial flights have been suspended at YSJ since mid-January but that is all about to change.
Porter Airlines is scheduled to return on June 21 followed by Air Canada on June 30. Seasonal service by Sunwing is expected to return next February.
Low-discount carrier Flair Airlines is expected to begin service to Toronto in July and PAL Airlines will be offering flights to Halifax starting in August.
“When travel resumes, YSJ is determined to emerge better than ever before,” said Hierlihy.
The drop in passenger volumes over the past year took a major bite out of the airport’s finances.
Figures show revenue was down by $4.9 million, or 71 per cent, in 2020 due mainly to lower passenger volumes.
But Hierlihy said they moved quickly to stem controllable spending and reduce costs where possible.
“We deferred more than $5 million in capital projects, we cut expenses by more than $1.3 million on an annualized basis and utilized available government support programs,” he said.
The airport ended 2020 with a negative operating cash flow of $1.9 million and is expecting similar results for 2021.
But Hierlihy said the airport has been “fiscally prudent” and is in a position to weather the economic downturn.
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