Image: JC Gellidon on Unsplash
Air travel in Atlantic Canada fell 92 percent year-over-year from April to the end of August, compared to the previous year, resulting in massive revenue losses, the Atlantic Canada Airports Association (ACAA) said.
That’s equal to a decline of 3.7 million passengers at a time that would normally be the ending of the peak tourism season.
“Summer results are in. What is normally a period in which airports depend to boost revenues for the entire year saw passenger traffic down 89 percent and 87 percent respectively in July and August in comparison to 2019,” said ACAA executive director Monette Pasher in a release.
“Throughout the pandemic our region’s airports have stayed open, providing an essential service to our communities, as they always have done, as airports are needed for medevac flights, air cargo and the movement of essential workers.”
The ACAA represents 11 airports across the region, which typically move more than 8 million passengers and around 60,000 metric tons of cargo each year. The Atlantic airports normally represent over 46,000 jobs and generate $4.4 billion annually for the region’s economy.
But this year, the ACAA says airports are facing “severe and enduring losses.” It projects that the 11 airports it represents will lose 5.5 million passengers this year, leading to a net loss of $76 million.
The impact of this on airports’ bottom line will severely hinder growth and recovery, as they’re forced to use capital reserves to survive or borrow to make up for operating losses and debt obligations. The ACAA has “grave concerns” about how this would impact the region’s connectivity and the cost of travel.
“It’s been a difficult situation since the start of the pandemic, frankly we’ve already hit rock bottom in terms of revenue losses and now it’s like the bottom is falling out: as the pandemic continues and Atlantic Canada remains cut off from the rest of the country, we do not see any recovery in sight, which means our airport losses will continue to mount,” added Pasher.
ACAA president and Saint John Airport CEO Derrick Stanford says despite being hit hard, airports are essential infrastructure and cannot close. So the only option to curb operating costs as much as possible to survive.
While the Canadian Emergency Wage Subsidy has offered some relief, Stanford says the federal government would need to provide sector-specific support because it will take years to recover from the financial damage airports in Atlantic Canada have already seen.
This story first appeared on Huddle, an Acadia Broadcasting content partner.
