Unprecedented Revenue Shortfalls at Saint John Airport due to COVID-19 Pandemic necessitates Passenger Facility Fee Increase in 2021
SAINT JOHN, NB – Saint John Airport Inc. announces that it will increase its Passenger Facility Fee (PFF) by $10 effective January 1, 2021. The increase in fees will bring the PFF from $25 to $35.
“This is the first time YSJ has increased the Passenger Facility Fee in 5 years,” said YSJ President and CEO, Derrick Stanford. “Since the pandemic began, we’ve deferred more than $5 million in capital projects, cut expenses by $1.3 million, and laid-off staff. Unfortunately, these measures are not enough to offset the fact our revenues have been almost totally eliminated.”
The PFF increase is necessary due to the COVID-19 pandemic and the devastating impact it has had on the Saint John Airport’s airline partners, passenger traffic and the resulting loss of airport revenues.
YSJ estimates a total loss in passenger traffic of approximately 80 per cent for 2020. This decrease in traffic and reduction in air service has resulted in a projected 70 per cent loss in revenue for the year. A return to 2019 traffic levels is not expected until at least 2025.
Before COVID-19, the Saint John Airport’s future was bright with new flights, carriers and more passengers than ever before. With major investments in capital and service enhancements completed in 2019, YSJ was poised and ready for the next 20 years of growth.
“The increase in our Passenger Facility Fee is necessary in order to offset the 70 percent drop in revenues due to the pandemic, and to ensure we continue to provide a safe and secure airport environment,” Stanford said. “I thank the Greater Saint John community for their continued support as we navigate the challenges associated with the unprecedented impacts of COVID-19”.
About the Saint John Airport
The Saint John Airport Inc. is a community based, not-for-profit corporation serving the air travel needs of residents of southwestern New Brunswick. The airport (YSJ) is a key element in the economic and social development of the Greater Saint John region with an economic impact estimated at $68.7 million, with more than 480 jobs created directly and indirectly. The Saint John Airport reinvests all profits back into the airport and local communities.
For additional information or to coordinate an interview, please contact:
Derrick Stanford, President and CEO
Saint John Airport Office: 506-644-8607