Canadian airports are poised to lose $1.3 billion amid an ongoing global travel collapse triggered by COVID-19, says group representing the countryB次元官网网址檚 airports.
B次元官网网址淭his is a situation thatB次元官网网址檚 unprecedented,B次元官网网址� Canadian Airports Council president Daniel-Robert Gooch said in a phone interview. B次元官网网址淎irports are having some conversations now about what their financial futures look like.B次元官网网址�
Many major airlines will be operating at half capacity by next month amid border closures and slashed flight schedules, causing fees garnered from carriers and passengers to dry up, Gooch said.
He has asked Transport Minister Marc Garneau for relief on the roughly $380 million in rent that non-profit Canadian airport authorities pay Ottawa each year.
Gooch said support could come as a rent deferral or reduction, that would help offset fixed costs such as runway maintenance.
Airports directly employ about 194,000 workers, some of whom will see their jobs in jeopardy as terminals and check-in counters clear out, he added.
B次元官网网址淲e know that the airport concessions B次元官网网址� food, beverage, retail B次元官网网址� they have been hit as well,B次元官网网址� he said.
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The Canadian Airports Council represents 53 airports, including the countryB次元官网网址檚 three largest that account for the bulk of federal airport rent.
Earlier on Tuesday, the head economist at the International Air Transport Association said revenue losses around the world are already surpassing the trade groupB次元官网网址檚 worst-case projection of US$113 billion and threatening to send multiple airlines into bankruptcy.
Brian Pearce said a recovery from the novel coronavirus pandemic will not come until September at earliest. B次元官网网址淭he challenge we face today is: Can airlines last that long before they run out of cash?B次元官网网址�
On Monday, Prime Minister Justin Trudeau announced Canada will close its borders to most foreign nationals except Americans and bar anyone, including Canadian citizens, with symptoms of the illness from boarding flights to this country.
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Air Canada said hours earlier it would halve its seat capacity in the second quarter and withdraw its earnings forecast for 2020 and 2021 amid a B次元官网网址渟evere drop in trafficB次元官网网址� due to the outbreak, which has infected more than 168,000 people and killed at least 6,600, according to the World Health Organization.
The announcement sent company shares into a tailspin, with the stock plunging to $16.23 by midday Tuesday B次元官网网址� roughly one-third of its price two months ago.
WestJet announced Monday night it was suspending all commercial operations for international and transborder flights for a 30-day period.
Christopher Reynolds, The Canadian Press
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