Toronto Pearson Airport Reports Further Layoffs, Anticipates Pre-Pandemic Level Recovery to Take 3-5 Years
Much like the stagnant demand for air travel south of the border, Canadian airports have also been feeling the freeze. As coronavirus cases continue to increase amid the reopening of economies and lifting of restrictions, consumers still continue to be leery of airplanes, and the heightened risk they carry for coronavirus transmission.
As a result, airports have been struggling to remain afloat amid the reduction in customers. According to the Greater Toronto Airports Authority (GTAA), Pearson International Airport, the largest airport in Canada, has announced it plans to slash 300 positions via layoffs and voluntary departures, and will also opt out of filling an additional 200 open positions. These forthcoming layoffs and position cutbacks represent a 27% decrease in the airport’s pre-pandemic workforce.
At the height of the pandemic back in April, Pearson Airport handled 97% less passengers compared to the same time a year prior. As of current, the passenger traffic at Canada’s largest airport remains at the 1996 level.
The GTAA is also expecting the current level of activity to remain for some time, with a pre-pandemic rebound not expected for at least another 3 to 5 years. Many governments around the world have been restricting incoming flights and imposing self-quarantine regulations, which have resulted in a profound effect on the airline industry.
Information for this briefing was found via CBC News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.