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Airports gear up for passenger surge as spring break tests their capacity

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Christopher Reynolds, The Canadian Press


Published Friday, March 10, 2023 6:43AM EST


Last Updated Friday, March 10, 2023 3:48PM EST

MONTREAL – Airports and airlines prepared for a surge in passengers this week ahead of spring break after a year where the industry has struggled to cope with peak travel times.

As March break kicked off in Ontario this weekend, travellers hoped to avoid a repeat of the snaking lines, lost luggage and hundreds of thousands of flight cancellations that beset them last summer and during the winter holidays.

March is typically a busy time for the airline industry as provincial spring breaks fall throughout the month and families use the time to travel.

Severe staffing shortages and high worker attrition rates were among the factors conspiring to snarl air travel as the sector began recovering from COVID-19-related travel restrictions in 2022 – with fears they could foil vacation plans yet again.

Last month, the percentage of on-time departures in Vancouver, Toronto and Montreal was well below that of airports in Seattle, Chicago, New York City and Boston, according to statistics from travel data company OAG.

“It doesn’t bode well, given that February is traditionally a quiet time of year, that in the case of the three largest Canadian airports somewhere in the vicinity of four out of every 10 flights were delayed,” said former Air Canada chief operating officer Duncan Dee.

Jessica Ng, who was waiting at Pearson with her two children and husband Friday morning, said they realized after entering the terminal that their U.S.-bound Air Canada plane was delayed for about two hours because the incoming flight had also been held up.

“I have been delayed quite often by Air Canada before as well, so I am not surprised,” she said.

But fear of losing her luggage remained top of mind, so Ng resorted to an increasingly common tactic.

“I added an extra AirTag in my checked luggage, just in case if they are lost, then I know I can track my luggage,” she said, referring to Apple’s electronic tracking device.

Ng said her confidence in Canadian airlines and airports is not strong.

“But do we have a choice?”

Last week, Toronto’s Pearson airport announced it would cap the number of flights during high-traffic hours in order to “flatten out” daily peaks and smooth the flow of passengers.

Airlines and the two federal agencies responsible for airport security screeners and border officers say they are adequately staffed to handle the flood of spring travellers, though some hedged their confidence.

“While we are well staffed and prepared for the spring and summer travel seasons, it’s important to note that wait times at any airport can occur for various reasons, even when staffing levels are optimal, and can fluctuate throughout the day based on passenger volume/number of flights,” said Suzanne Perseo, a spokeswoman for the Canadian Air Transport Security Authority (CATSA), in an email.

She said the agency has about 172 more screening officers and recruits than in 2019, when it employed 8,284 screeners. At the country’s four largest airports – Toronto, Montreal, Vancouver and Calgary – staffing levels are at or above pre-pandemic levels, she said.

Air Canada boasted a head count of about 37,000 at the end of February compared with 35,680 in December and just over 31,000 a year ago.

“The Canadian job market is very competitive so attracting and retaining talent is a challenge for all companies,” said airline spokesman Peter Fitzpatrick in an email.

Flair Airlines CEO Stephen Jones said this week that staff turnover is one of the biggest hurdles in an industry that requires substantial training and skills across much of its workforce, from flight crews to air traffic controllers.

“Pilots are heavily in demand, and mobile … The other part really is the airport labour force, whether it’s the baggage handlers or check-in – not so much attracting people necessarily, but the level of attrition,” he said at a press conference.

“Mechanics are another that’s very much in demand – the maintenance engineers” – who typically need a four-year college diploma or apprenticeship program as well as several years of on-the-job training.

Customer service agents receive “abysmal” training and unsustainable schedules at some airlines, said Leslie Dias, director of airlines at Unifor, which represents nearly 9,000 agents.

“We have some airline workers whose entire training happens virtually. They never even step into an airport until essentially their first day of work. So I think you can imagine what that means in terms of assisting passengers,” she said.

“And you can have a shift that’s from 3 a.m. to 7 a.m. or some crazy time that’s late at night. And they’re not always stable hours” – resulting in further turnover – she said.

Security screeners’ attrition rate in the three months between July and September was about 10 per cent countrywide, though it’s “trending down,” CATSA said.

David Lipton, a spokesman for the United Steelworkers union that represents some 2,000 screeners across 44 Canadian airports, partly agreed, pointing to wage hikes in recent collective agreements: “The situation is still difficult in terms of retention and recruiting, but it is improving.”

The number of scheduled flights by Air Canada and WestJet jumped 31 per cent to 47,362 this month from 36,062 in the same period a year earlier, according to flight data firm Cirium.

The most sought-after destinations included Paris, New York City, London, Fort Lauderdale and Orlando, Fla., and Las Vegas, according to travel search engine Kayak.

– With files from Sharif Hassan in Toronto.

This report by The Canadian Press was first published March 10, 2023.

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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