Halifax International Airport, Facing $50-Million Deficit, Raises Fees
HALIFAX – Passengers travelling through the Halifax Stanfield International Airport will be paying slightly higher fees when they fly. Facing a $50-million dollar deficit in 2020, the airport has increased its “airport improvement fees” to increase revenue.
Passengers using HIA to travel outside Nova Scotia will pay $35 (up from $28), while passengers flying between Halifax and Sydney will pay $22 (up from $15). The new fees will take effect on January 4, 2021.
“We have very few options to deal with a financial crisis of this magnitude – it’s unlike anything we have experienced in 20 years of managing the Halifax airport,” said airport CEO Joyce Carter in a press release.
“In addition to significant cost-cutting measures we’ve undertaken over the past several months, we must generate sufficient revenue to meet our financial obligations for debt and infrastructure management. Our only options to generate more revenue in this environment are through additional borrowing and fee increases, and we can’t continue to borrow our way through this crisis with no end in sight.”
Ever since Covid-19 brought worldwide travel to a near-halt, traffic at HIA has decreased by 90 percent. That number is no surprise to anyone who has traveled in and out of Halifax recently. The once-bustling terminals now sit near empty and at times it feels like you might be travelling alone. (This reporter travelled out of Halifax in September and had the weird experience of being the only person in line to go through security check).
In its press release, the HIAA said they have taken drastic measures to reduce spending. The workforce has been cut by 25 percent and, much like struggling households turn off every bulb possible to save on energy costs, the HIAA has “powered down equipment and lighting” to save money.
“These efforts have saved more than half of the airport’s planned operating budget for 2020 since April, but HIAA is still facing a significant deficit and rising debt loads,” reads the press release. “Increasing revenues, in the absence of other funding streams, is necessary to maintain HIAA’s long-term financial viability.”
The HIAA says it is continuing to ask the federal government for financial support during the pandemic.