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Half a million passengers faced delays on international flights at Pearson in May – CP24 Toronto's Breaking News

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Christopher Reynolds, The Canadian Press


Published Friday, June 10, 2022 5:49AM EDT


Last Updated Friday, June 10, 2022 4:28PM EDT

Pearson airport is hell on earth.”

So declared Ryan Whitney, a former NHLer, in a social media post from Toronto’s main airport this week.

The one-time Edmonton Oilers defenceman laid bare his exasperation after undergoing a gauntlet of lines, delays, cancellations, and rebookings during an Air Canada stopover at Canada’s busiest travel hub. He said he landed at Pearson at 3 p.m. on Sunday and didn’t take off for Boston until 1 p.m. the next day.

“I am so in shock at this place. It is the biggest disgrace known to man,” he told his 414,300 Twitter followers in a selfie video from the gate.

“I’m gonna have a viral meltdown.”

Scenes of endless security and customs queues at large Canadian airports – and Pearson in particular – have played out all spring, with peak travel season weeks away. While the federal government has pledged to cancel random COVID-19 testing at customs and hire hundreds more customs and security screening officers, hurdles ranging from staffing shortages to tarmac delays threaten to cascade into a problem that overmatches efforts to drain clogged terminals.

“I think it’s just going to get worse,” former Air Canada chief operating officer Duncan Dee said in an interview.

“The only thing consistent that’s happened at Canadian airports for two months now is there have been delays.”

Nearly half a million passengers were held up after arriving on international flights at Pearson airport last month. Some 490,810 travellers, or about half of all arrivals from abroad, faced delays as they sat on the tarmac or faced staggered off-loading to ease pressure on overflowing customs areas, according to figures provided by the Greater Toronto Airports Authority.

In total, some 2,700 flights arriving from outside the country were delayed at Pearson last month, versus four planes – and a few hundred passengers – in May 2019.

And passenger volume is only likely to increase, with the summer holidays about to kick off and the United States announcing Friday it will drop COVID-19 testing requirements for inbound air travellers from abroad starting Sunday.

On Friday, the federal government announced it would suspend randomized COVID-19 tests of vaccinated passengers starting Saturday until at least June 30. The move walks back a previous vow to maintain testing at airport customs until that date and accedes to demands from the industry, which hoped to process travellers more swiftly.

The announcement came hours after chief public health officer Dr. Theresa Tam said randomized testing serves as “an early warning system” that detects new variants as they filter into the country and indicates global trends such as infection rates abroad.

Three in 100 tests remain positive, she said.

Passenger numbers still trail pre-pandemic levels, but Canadians’ travel spending – on airline, travel agency and car rental bookings – have topped 2019 levels since mid-March, RBC chief economist Craig Wright said in a research note Tuesday.

Airlines are not configured to deal with the ensuing hours-long security and customs delays, Dee said.

“That crew that was scheduled to operate your flight? They’re out of duty time because the flight they operated this morning was held off gate for two hours,” he wrote on Twitter, referring to regulatory limits on hours worked by flight crews within one-day and four-week periods.

“That aircraft that was scheduled to operate your morning flight? Sorry, it missed its scheduled maintenance last night because it couldn’t offload its passengers on time because the customs hall was full.”

Meanwhile a flight missed due to a long security queue or delayed connecting flight may take six hours to rebook – as in Whitney’s case – since agents slated to cover the customer service counter are still working to board passengers on a different delayed plane. Similar snags confront baggage handlers.

“It just cascades,” said Helane Becker, an analyst for banking firm Cowen, citing a lack of predictability.

“The watchword for the summer is patience.”

Between June 1 and June 9, Air Canada cancelled nine per cent of its scheduled flights at Pearson, according to flight data firm Cirium. The scrapped flights were evenly split between arrivals and departures.

“These days, airlines are facing the double whammy of a shortage of pilots, flight attendants and ground handlers and then lumpy demand on their network,” said Cirium spokesman Mike Arnot.

“Some planes are full, and some are not.” Partially booked flights may be nixed in order to funnel passengers onto other planes and boost efficiency.

Karen Littlewood, president of the Ontario Secondary School Teachers’ Federation, was bound for Sault Ste. Marie, Ont. for work on Thursday, but wound up waiting on the Pearson tarmac pre-takeoff for four hours after a delayed boarding due to a dearth of flight attendants.

“And then they said they had a flight attendant, but now they didn’t have a pilot, so they were flying in a pilot from Montreal,” she said.

After disembarking from the first Air Canada plane, she sat on a second one for two more hours.

“It was very frustrating.”

Ottawa has said the Canadian Air Transport Security Authority (CATSA) will have 400 more personnel deployed at airports by month’s end.

But the hiring process takes time, with clearance from one of CATSA’s three subcontractors and an RCMP criminal background check required, on top of clearance from the local airport authority and Transport Canada.

There are also different levels of security clearance, with a “relaxed” clearance allowing the agent to check boarding passes and a tougher-to-obtain full clearance permitting actual screening of luggage, said Teamsters Canada spokeswoman Catherine Cosgrove, who represents about 1,000 airport screeners.

An additional transborder security clearance makes it harder to staff checkpoints on international flights, adding to their typically longer wait times.

“It’s like rewiring a house while still living in it,” she said. “It’s going to take months to a year.”

This report by The Canadian Press was first published June 10, 2022.

– With files from Marie Woolf in Ottawa

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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