The head of the Canadian Airports Council says airports expect to lose over a billion dollars due to COVID-19. Daniel-Robert Gooch says many major airlines will be operating at half capacity by next month amid border closures and slashed flight schedules, causing airport fees to dry up.
The Canadian Airports Council representing 53 airports, anticipates losses up to $1.3 billion. The council president is asking Transport Minister Marc Garneau for relief on the roughly $380 million in rent that Canadian airport authorities pay Ottawa each year.
Gooch says support could come as a rent deferral or reduction, which would help offset fixed costs such as runway maintenance. He says airports directly employ about 194,000 workers, some of whom will see their jobs in jeopardy as terminals and check-in counters clear out.
Earlier on Tuesday, the head economist at the International Air Transport Association said revenue losses are already surpassing the trade group’s worst-case projection of $160 billion (US$113 billion) and threatening to send multiple airlines into bankruptcy.
Garneau said he is also in contact with airlines and Via Rail about the unprecedented impact on their operations. Asked about compensation, Garneau says he is in discussions with the sector but does not have anything specific to share at this time.