Halifax International Airport Will Lose $500,000 A Week In 2022

HALIFAX–The Halifax International Airport will lose an average of $500,000 a week in 2022, according to the financial statement given at its AGM on May 5.

This will be the third financial year in a row where the airport will lose millions of dollars, thanks to reduced customer demand caused by the Covid-19 pandemic. The airport recorded a net loss of $34.9-million in 2021, which is an improvement over its $40-million loss in 2020.

“These losses are unprecedented for HIAA,” said Paul Brigley, VP of finance for HIAA.

“Airport operating expenses are expected to continue to outpace revenues again in 2022… It’ll be a few more years until we return to positive net earnings.”

The Halifax airport brought in $48-million worth of revenue in 2021, which is only 42 percent of what it took in in 2019, before the pandemic.

“If you exclude direct government support, it was only 37 percent,” said Brigley.

Given the bleak financials, Brigley explained that the airport authority had to keep costs down in 2021. Last year, it only spent $11.1-million On capital investments. In the years leading up to the pandemic, the airport averaged $35-million in capital spending.

In May of 2021, the airport had to take out a $150-million loan to keep up with operating costs and essential capital projects.

In terms of passenger volume, 1.1 million passengers travelled through the Halifax airport in 2021, up from 995,000 the year before.

“These passenger volumes are comparable to airport activity 50 years ago and represent just one-quarter of pre-pandemic traffic,” said Brigley. “The first several months of 2021 were some of the quietest in terms of passenger and flight activity.”

At the worst point in the pandemic, Halifax International Airport was serving four domestic locations served by two airlines, compared to 46 locations served by 17 airlines pre-pandemic. But Brigley said there are signs in 2022 that things are turning around for the better.

“Recently, we’ve been very pleased to see an increase in passenger activity, with our busiest day since the pandemic just a few days ago.”

In 2021, the airport also saw an increase in the volume and value of cargo shipments, compared to 2020. A lot of the extra value came from the increased price of lobster, the main export out of the airport.

Brigley said expanding cargo flights is a priority moving forward.

Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].