Island Airport Growth Stalled

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The following is a CommunityAIR press release commenting on the results of the Toronto Port Authority’s 2013 financial results which were released on Wednesday.


Island Airport Growth Stalled

Port Authority 2013 Financial Statements Released

For Immediate Release Wednesday, July 30, 2014

Contact: Brian Iler, Chair
416-835-4384 (cell)
416‑598‑0544 (work direct)

 

Island Airport passenger growth has come to a virtual halt, a document issued by Toronto Port Authority today revealed.

The Port Authority’s Management Discussion and Analysis states 1,911,632 passengers arrived and departed in 2013, versus 1,909,360 in 2012 – an increase of only 1,772 passengers, or 0.001%.

“We’re not surprised” said Brian Iler, chair of CommunityAIR. “We knew something was up when Porter stopped reporting its monthly passenger loads in April 2013, after selling fewer seats in five of the last seven months it reported, compared to the year before.”

These charts, prepared with data released by Porter, explain:

RPM is Revenue Passenger Miles, or the miles Porter planes fly, times the number of seats occupied in those flights.

Following remarkable growth up to August 2012, RPM declined in September, and even more so in October and November, 2012, in comparison with the months in the prior year.  RPM was more or less equal to the prior year’s in December and January, but declined in February and March 2013.

Chart 1 Press Release July 30

Porter ceased reporting thereafter.

Porter’s load factor (% of its seats that are filled with paying passengers) have, in six of the last seven months reported, declined year over year, indicating Porter continues to have a problem filling seats:

Chart 2 Press Release July 30

 Porter clearly struggles to fill 60% of its seats. For comparison, WestJet announced its load factor in April 2013 was 82.7%. Air Canada said it reported a system load factor of 82.1% for April 2013.

“The figures speak for themselves. Even with all those Porter ads, passenger growth has ceased, and there are far more empty seats than its competitors. Will it get worse once the Union-Pearson Express train starts running next year?” asked Iler.

 

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