Some of Canada’s airports are increasing fees to passengers, here’s why
Airports that misplaced hundreds of thousands of {dollars} through the pandemic at the moment are making an attempt to recoup a number of the losses as journey picks up once more.
To do that, many are rising the “user-pay” system that generates income from passengers, gas and plane charges.
After the decline in site visitors through the pandemic, some airports at the moment are rising charges they cost passengers.
“They have to get it from somewhere,” Barry Prentice, professor of provide chain administration on the University of Manitoba, advised CTV’s Your Morning on Friday. “So certainly, the only place they can get it from is passengers. They can obviously charge the airlines too, but that’ll just work its way into airfare. So one way or another, we’re going to pay more.”
Fees for “airport improvements” and “passenger facility fees” are methods airports can fund upgrades, upkeep and worker salaries.
“Some of these fees are actually going to pay debt, but they’re also there to pay for airport rent because the airports actually have to pay a fair amount of rent to the federal government every year,” Prentice stated.
Canada’s largest airport, Toronto Pearson International Airport, elevated enchancment charges charged to departing passengers on Jan. 1, from $30 to $35.
Travellers connecting by way of Pearson noticed a rise from $6 to $7. The airport additionally elevated aeronautical charges, which cowl de-icing, by 4 per cent.
Regina International Airport is rising its charges on April 1, when anybody flying out of the airport can anticipate a passenger facility charge of $30, up from $20.
Fort McMurray International Airport, in Alberta, is reviewing its airport enchancment charge, which is one of many highest within the nation at $40, in keeping with an evaluation by WestJet.
“There’s no other way for the airport to get money,” Prentice stated. “So they have to do that if they’re going to continue to function. Obviously, it’s because of this unusual circumstance of a pandemic.”
Pearson is managed by the Greater Toronto Airport Authority which reported a $734 million loss in 2020 and 2021. Its debt rose $800 million to $7.2 billion.
The Vancouver Airport Authority, which misplaced $576 million, raised its debt by greater than $500 million to $1.8 billion.
Montreal Airport Authority’s debt rose by $800 million to $3 billion.
“We’ve got no other choice, either you’re going to fly out to your local airport, or you’re going to drive a long way to get to the next one,” Prentice stated. “They are the same fees, so there’s not much Canadians can do, but just pay it out.”
