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With passenger volumes expected to decline by over 50 per cent between March and June 2020, and a projected 2020 revenue loss of $1.3 billion, Canada’s airports are looking to the federal government both for urgently needed short term relief in the form of rent reduction and a longer term stimulus package as part of the nation’s overall economic recovery.
Right now, airports are focused on the safety of travellers and airport workers, and getting people home. They are committed to working with the Public Health Agency of Canada, Canada Border Services Agency and air carrier partners to support the new screening and segregation measures announced by the Government of Canada. Airports have also implemented a series of enhanced cleaning and sanitation measures to keep the virus in check as people move through their facilities.
The care of passengers and workers is the priority. Yet, the operational and financial challenges Canada’s airports are facing from COVID-19 are unlike anything the industry has seen. The impact is being felt by airports of all sizes as the effects of travel restrictions and self-isolation slow travel across the country. Canadian Airports Council (CAC) think plans for recovery have to begin now.
Based on preliminary assessments by the Airports Council International – North America (ACI-NA), the COVID-19 outbreak will now significantly set back Canadian airports from previously forecasted stable growth prospects. A total potential loss of $853 million to $1.3 billion is expected in 2020 at CAC member airports. However, this number is subject to change as new events unfold.
Canada’s airports have identified actions the government can take to provide short-term financial relief to get through the immediate cash flow challenges, and longer-term recovery initiatives to stimulate travel and the local economy once the crisis is past.
These are the essential actions that CAC said the government must take to ensure that Canada’s airports can rebound from this crisis and continue to contribute to Canadians’ quality of life and economic well-being:
- Rent relief of at least one year, to allow airports to redeploy these funds to continue operations and support their recovery strategies
- Financial relief for reduced cash flow – to help airports that do not remit rent, and address the mounting costs incurred to stream international travellers through a smaller number of airports.
- Boost funding for infrastructure and tourism initiatives already in place such as the National Trade Corridor Fund, the Airports Capital Assistance Program and Destination Canada.
Canada’s airports are deeply grateful for the support of the Minister of Transport, his officials and his department as we collectively deal with this unprecedented threat. CAC looks forward to working with the government to begin the recovery process and return to a stable and growing economy.
A major link in our transportation network, the Canadian airport system is an economic catalyst in its own right, serving more than 140 million passengers annually and supporting 194,000 jobs. As not-for-profit community-led entities, airports are regional economic enablers, actively supporting our $90 billion travel and tourism sector while supporting local economies and providing critical access for small and remote communities.
