Air travellers face higher airport fees following pandemic disruptions
Posted March 6, 2023 8:02 am.
Last Updated March 6, 2023 11:59 am.
Canadian travellers are facing increased airport fees after the pandemic grounded revenues and led to more debt for airports across the country.
DBRS Morningstar, a global credit ratings agency, says COVID-19 disrupted the airport sector’s “relatively stable” and resilient business model.
Its analysis shows that while airlines received significant financial aid during the height of the pandemic, airport authorities only benefited from “modest” support.
That means Canadian airports have added around $3.2 billion in combined debt.
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It says operating costs and capital project expenditures are also rising due to inflation.
The Vancouver Airport Authority — the organization that operates Vancouver International Airport (YVR) — says the pandemic has resulted in “the highest debt burden in our history, at $1.5 billion.”
“We earn revenue from three main sources: aeronautical revenue, non-aeronautical revenue and the Airport Improvement Fee (AIF). In 2021, the distribution across these sources totalled 19%, 60% and 21%, respectively,” a spokesperson told CityNews.
Despite the impacts COVID-19 had on the sector, the Vancouver Airport Authority says its AIF “remains at the same level set January 1, 2020, of $25 for passengers travelling from YVR outside of B.C. and the Yukon, which is the lowest published rate across Tier 1 airports in Canada.
“The AIF for those travelling from YVR within B.C. and to the Yukon remains $5,” the authority added.
This, however, isn’t the case for all airports. DBRS points to Toronto Pearson International Airport increasing its improvement fee by $5 to $35 for departing passengers and $4 to $7 for connecting passengers during the pandemic as an example of higher costs to travellers.
-With files from Maria Vinca
