Travel restrictions and self‐isolation protocols continued to negatively impact the region’s connectivity and hinder Winnipeg Airports Authority’s (WAA) recovery efforts in the third quarter of 2020.
Passenger traffic remained low during the quarter, averaging 2,051 passengers a day moving through Winnipeg Richardson International Airport (YWG). This is an 85% drop in traffic when compared to the third quarter of 2019, when 13,273 passengers a day travelled through the airport. Third quarter traffic did increase by 132,952 travelers over the second quarter of 2020, due in part to the lifting of provincial self‐isolation protocols on June 21 for travelers arriving from Western Canada or Northwestern Ontario.
WAA continues to prioritize the safety of travelers and employees at the airport, implementing measures to exceed public health standards and boost traveler confidence. The YWG Clean Program continued to evolve, including introducing ultra‐violet light handrail sterilizers to disinfect the Arrivals Hall escalator. As well, in July, the airport made face coverings mandatory in the terminal, offering another layer of protection. These initiatives led to YWG being recognized by Airports Council International’s global Airport Health Accreditation (AHA) program, reaffirming WAA’s commitment to being an industry leader in safety.
Travel restrictions continued to have a negative impact on WAA’s financial position, as 90% of revenues are linked to passenger traffic while 85% of operating costs are fixed. WAA continues to find efficiencies to reduce costs, including shutting down areas of the terminal, reducing staffing, and delaying capital projects, however, the airport needs to remain open and the airfield and runways maintained to provide essential services and move critical goods, while meeting all regulatory obligations. Consolidated revenue for the third quarter of 2020 was $14.3 million, versus $36.1 million in 2019. Earnings before interest, depreciation and taxes were $2.6 million for the third quarter of 2020, compared to $18.5 million during the same period in 2019.
“Winnipeg Richardson International Airport, like the rest of Canada’s airports, continues to struggle as governments restrict travel and impose self‐isolation protocols, crippling airport revenues,” said Barry Rempel, president and CEO of WAA. “Winnipeg Richardson International Airport will be essential to this region’s economic recovery, but we can’t do it alone. Government support is required to ensure the airport can continue to provide essential services for our community in the future.”
Cargo operations remained strong as WAA and partners helped move vital goods in and out of our community. The number of cargo plane landings increased by 1.85% in the third quarter of 2020 compared to the same period in 2019. The airport also welcomed a steady flow of large cargo aircrafts from around the world, keeping Winnipeg connected to international markets.
WAA continued to diversify revenues through its subsidiary Winnipeg Airport Services Corp. (WASCO), which provides aviation services at other airports across Canada. In the third quarter, WASCO was contracted to deliver airport management services at Stephenville Airport in Newfoundland and Labrador. This expands WAA’s reach to Eastern Canada and allows the company to have a presence from coast‐to‐coast‐to‐coast.
Despite the current challenges, WAA remains committed to leading transportation innovation and growth for the benefit of the community it serves. In September, WAA held its Annual Public Meeting, giving community and business leaders in attendance, and those participating virtually, an opportunity to hear directly from senior leadership on steps taken during the pandemic. WAA’s dedicated staff also continued the tradition of growing a garden at the airport in support of Winnipeg Harvest. This year, the team’s efforts resulted in 1,566 pounds of vegetables being donated to help support local Manitobans during this critical time.
