Airport anticipates five million fewer passengers, forecasting $100 million in lost revenue
Calgary, Alberta (March 16, 2020) - The Calgary Airport Authority (The Authority) is accelerating its response to the unprecedented, sudden and significant impacts of the COVID-19 pandemic on the aviation industry by focusing on connecting and reuniting people as one of four Canadian airports open to international flights.
"Our immediate priority is sustaining essential services to facilitate the swift, safe return of Canadians abroad," said Bob Sartor, President & CEO, The Calgary Airport Authority." For over 25 years, the Authority has lived by a mandate focused on safety and security. These enduring values continue to guide us as we face the challenge of responding to the evolving threat of the virus," added Sartor.
YYC Calgary International Airport is one of four Canadian airports designated by the Government of Canada to accommodate international flights. The airport will assist airline, agency and public health partners in re-patriating Canadians eager to return home as a result of the global COVID-19 pandemic.
The Public Health Agency of Canada (PHAC) and Canada Border Services Agency (CBSA) are the lead government agencies responding at Canada's airports when it comes to screening arriving International and U.S. passengers. They have increased their procedures to screen passengers at YYC. We are supporting these agencies in every possible way.
Signage is in place informing guests that Alberta Health recommends all Albertans and visitors arriving from outside Canada should self-isolate for 14 days, even if feeling well. YYC has also taken additional precautions by doubling terminal cleaning to PHAC standards, adding hand sanitizing stations and reinforcing hygiene and handwashing in all washrooms and on airport signage.
With declining flight bookings, cancelled routes and travel restrictions, the Authority estimates a minimum 30 per cent drop in 2020 passenger volumes at YYC compared to last year, or approximately five million less guests. The authority is forecasting the decrease will equate to approximately $100 million in lost revenue, close to 25 per cent of the Authority’s annual $450 million budget.
We are working with retailers at YYC to review and reduce hours of operations because of decreased passenger volumes and to ensure appropriate service levels and staff well-being. The Authority has also made the decision to suspend the White Hat Volunteer program and allow non-operational and administrative staff to work remotely as a precaution.
"Even in challenging times, YYC has been an economic engine to Calgary supporting more than 50,000 jobs and generating $8 billion in GDP annually through commercial travel and air cargo," said Michael Casey, Chair, Board of Directors, The Calgary Airport Authority. "The Board of Directors fully supports the Authority’s prudent planning as it adjusts to sudden, new global circumstances airports are facing."
To respond to the financial impacts, the Authority plans to defer capital investments for 2020, reduce discretionary spending and refinance debt. As a non share capital, not-for-profit organization that receives no taxpayer support, the Authority will engage its government partners in discussions on financial relief and assistance to help sustain our vital infrastructure.
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This news release contains certain forward-looking statements about our current expectations, estimates and projections about the future, based on certain assumptions made by us in light of our experience and perception of historical trends. Although the Authority believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements as actual results may differ materially from those expressed or implied.
ABOUT THE CALGARY AIRPORT AUTHORITY
The Calgary Airport Authority is a not-for-profit organization incorporated under the Regional Airports Authorities Act of Alberta. The Calgary Airport Authority is responsible for the management, operation and development of YYC Calgary International Airport and Springbank Airport (YBW). YYC is an important economic engine for the city, region and province, which welcomed 18 million passengers in 2019, supporting more than 50,000 jobs and generating $8 billion of GDP annually in economic activity.
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