Moncton Airport Expects To Lose $12 Million In Revenue This Year, CEO Says
MONCTON — Covid-19 has hit the travel industry very hard, and the Greater Moncton Roméo LeBlanc International Airport is no exception.
The airport saw the number of passengers drop in March to nearly half the number the same month last year.
In a message from the CEO, president and chief executive Bernard LeBlanc said passenger traffic fell from 68,000 to 38,000 year-on-year in March, and it’s expecting decreases of nearly 100 percent for the months of April, May and June.
“The months of March and April are normally the time of year with the strongest passenger count demonstrated by a terminal filled with sun-seekers, snowbirds and business travelers, but in 2020, it is instead marked by vacant check-in counters and empty parking lots,” he said.
Airlines servicing Greater Moncton have cancelled most routes, with only one commercial flight to Toronto by WestJet still operating thrice a week.
The airport is expecting significant losses, with total revenue for the year estimated to fall by $12 million, and by more than $7.3 million next year. Passenger volumes for the year could fall by 70 percent, which could make the long-term financial sustainability of the airport “more complicated based on the anticipated recovery period,” LeBlanc said.
The forecast on revenue loss doesn’t just reflect airline activity, but also the effect of COVID-19 on all of its other revenue streams, including concessions, parking and others.
Despite drastically reduced revenue, the airport still has to maintain the same high standard of safe, secure operations. Cargo operators like Cargojet and Fedex are still transporting essential goods and supplies daily at the airport, and private chartered flights are also still active. Moncton Flight College, which uses the airport to train student pilots, has also started operating again at a reduced capacity.
Still, the airport has had to defer or cancel more than $11.5 million in capital projects for this year.
At its annual general meeting in May 2019, LeBlanc announced plans for $13 million worth of capital investments, which includes moving the bar in the waiting area to the airside, revamping three of its runways to comply with new safety regulations, and an expansion of the apron.
RELATED: It Was A Year Of Firsts For The Greater Moncton International Airport
This year, it also had to cut its operating budget by nearly $1.5 million.
“This situation is not sustainable and puts us in a precarious financial situation in view of the uncertainty related to the timing of return to normal operations and the crisis duration,” LeBlanc said. “Our management team continues to diligently review our financial position and business plan, and mitigate the impacts through a reduction of all controllable spending.”
“We are working actively to position ourselves for recovery, as are other industries,” he added. “The biggest challenge remains the uncertainty of the duration of the impacts on the aviation sector and the likely recovery period for airlines and airports as a function of air travel demand.”
The Atlantic Canadian Airports Association and the Canadian Airports Council are seeking more financial support to address immediate cash flow challenges and ensure air terminals can stay afloat and recover.
LeBlanc’s message said what’s needed is relief in the form of loan guarantees, eliminations of ground lease payments and access to interest-free loans.
“While we are hopeful business will return to ‘normal’ eventually, we do not know precisely when the crisis will be over, or when our airline partners will be able to resume operations in line with our 2019 activity level,” LeBlanc said.
“It certainly is heartening to see the compassion and resilience of New Brunswickers who have responded to this crisis with courage, grace and kindness and like all other businesses in our community YQM is determined to see our organization through this unparalleled trial, until our community is ready to travel and experience all that the world has to offer once again.”
The Moncton airport drives more than $665 million of economic activity in the province annually, representing 2,800 direct, indirect and induced jobs.