From banner year to standstill: Charlottetown Airport CEO unveils grim forecast
Charlottetown Airport to consider increasing passenger fees, looks for long-term rent relief
The Charlottetown Airport revealed a stark financial forecast at its virtual annual public meeting. With passenger traffic expected to drop by 75 to 80 per cent in 2020, the airport has put plans to expand on hold and is considering increasing passenger fees.
During the meeting, broadcast via Facebook Live, the airport's Chief Executive Officer Doug Newson said he had been expecting a record year for passenger traffic in 2020, until mid-March, when air traffic slowed to a trickle due to COVID-19 travel restrictions and Prince Edward Island's 14-day isolation requirements for people entering the province.
"I think it's safe to say," said Newson, "air travel may never be the same again."
The airport began the year with an altogether different problem — growth outpacing the size of the terminal. Three new flight services were set to start in the summer of 2020: Flair, Swoop, and a direct flight to Calgary offered by WestJet. Those have all been either delayed or cancelled.
Most of the airport's revenue comes from passenger fees and aircraft landing fees.
"With passenger traffic down 97 per cent," said Newson, "most of this revenue has essentially disappeared overnight."
The airport charges a $20 fee per passenger, which Newson said is one of the lowest airport fees in the country.
In 2019, passenger fees accounted for $4 million in revenue for the airport. But with fewer passengers, Newson told the annual meeting that the airport is considering an increase to that fee, although the earliest that would happen until towards the end of the year.
The airport has already had to dip into its capital reserve funds and is hoping for extended rent relief from the federal government. The government already waived airport rent from March to December 2020. But because the airport pays rent based on a percentage of revenue above $5 million, it likely wouldn't have met the threshold to pay rent anyway, said Newson.
Newson said he "believes more could be done to help airports and the industry across this country" and would like to see longer-term rent relief.
Amid the grim forecast, the airport has launched a rebrand, complete with a new bilingual website www.flyyyg.com and logo, focused on the airport code, YYG.
Plans to expand the terminal have been put on hold. Two seasonal positions have also been cut and other employees are working on reduced hours.
Beginning July 1, Air Canada will be offering three flights daily to the Charlottetown Airport while West Jet flies to the Island twice weekly.
Due to COVID 19, only travellers are allowed inside the airport terminal building, physical distancing is required and airlines are asking passengers to wear a mask.