Toronto’s Pearson International airport — the busiest in Canada — has a PR problem, sparking concerns some people may avoid travelling to the city.
Disgruntled travellers passing through Pearson are posting about their bad experiences on social media, complaining about long line-ups, flight disruptions and missing baggage.
“Toronto’s Pearson Airport is a special circle of hell. The worst airport experience ever,” tweeted a traveller from Florida last week, along with a photo showing a departures board with more than two dozen delayed flights.
The airport’s troubles have also been featured in major international publications this month, including The New York Times, The Wall Street Journal, and the BBC.
“This is a national embarrassment,” said Walid Hejazi, an associate professor of of economic analysis and policy at the University of Toronto’s Rotman School of Management. “In the short term, this is clearly going to impact Canadian tourism.”
Toronto’s Pearson Airport is a special circle of hell. The worst airport experience ever. Good luck if you have to make a connection here. <a href=”https://twitter.com/hashtag/YYZ?src=hash&ref_src=twsrc%5Etfw”>#YYZ</a> <a href=”https://twitter.com/hashtag/pearsonairport?src=hash&ref_src=twsrc%5Etfw”>#pearsonairport</a> <a href=”https://t.co/kSFfaPTn8q”>pic.twitter.com/kSFfaPTn8q</a>
Due to a sudden surge in travel, airports across the globe have been plagued with congestion and flight disruptions.
But Pearson’s problems have garnered special attention, often because the airport has scored the top spot for the highest percentage of flight delays this summer: 57 per cent of all Pearson departures between June 1 and July 24 were delayed, according to flight tracking service FlightAware. That was the highest rate among the world’s 100 busiest airports.
“Toronto Airport Is World’s Worst For Delays,” announced a headline in the Wall Street Journal last week.
Montreal’s Trudeau International Airport scored the second spot with almost 53 per cent of flights delayed.
Toronto’s Pearson International has won top honors for airport service for years, but now it’s at the epicenter of a global air-travel meltdown <a href=”https://t.co/uDv3FlDlIl”>https://t.co/uDv3FlDlIl</a>
As with many airports across the globe, Pearson’s problems began when demand surged in May and many previously laid-off workers, including federal government employees, didn’t return — causing staffing shortages.
“Aviation roles are highly skilled, so it’s not as simple as hiring someone new and getting them on the floor of the terminal or out on the airfield,” said Tori Gass, spokesperson for The Greater Toronto Airports Authority (GTAA) in an email. The GTAA, a non-profit corporation, operates Pearson.
But the explanation is no solace for inconvenienced passengers.
Business traveller Eric Griffin of Philadelphia says he has sworn off Pearson for the time being, following his recent travel experience.
Griffin flew from Philadelphia to Toronto on June 27 for an important meeting with a prospective client for his phone accessories company.
Things didn’t go as planned.
Eric Griffin of Philadelphia, left, flew to Toronto with his work colleague, Tim Kleczka. Griffin said his departing flight was delayed, his luggage went missing and his flight home was cancelled. (Submitted by Eric Griffin)
After Griffin’s Air Canada flight landed in Toronto, he said it sat on the tarmac for at least two hours, and then he spent the following three hours dealing with his missing checked bag. The bag, which contained important sales-related materials, didn’t surface until three days after his meeting.
Next, Griffin’s return flight was cancelled, so he drove the 800 kilometres home to Philadelphia.
“At this point, I was just done betting on Pearson airport. I just had no faith they were going to get me out of there,” Griffin said in a Zoom interview.
“My experience at Pearson airport was a zero out of 10 stars. I don’t think it could have gotten worse.”
He too took to social media, writing, “Don’t ever fly to Toronto Pearson airport this year,” in a Facebook post.
Travel’s comeback?
Although travel has surged recently, it has yet to reach pre-pandemic levels. According to Statistics Canada, the number of foreign arrivals to Canada by air in June was down by about one-third compared to June 2019, when adjusted to account for recent changes in tracking air travel.
The Tourism Industry Association of Ontario (TIAO) says the problems at Pearson, along with remaining travel restrictions such as the ArriveCan entry app, are hampering travel’s comeback.
Jessica Ng with the Tourism Industry Association of Ontario says the problems at Pearson airport, along with remaining travel restrictions such as the ArriveCan entry app, are hindering travel’s revival. (CBC)
“Folks are deciding that, ‘You know what? Based on what we’re seeing, we’re just not going to travel to Canada, to Ontario, to Toronto, because it’s seen as being too cumbersome,’ ” said Jessica Ng, TIAO’s director of policy and government affairs.
“It impacts … what people think of Canada as a premier travel destination, and it impacts tourism businesses just as they’re getting out of two years of restrictions and uncertainty.”
The Toronto Region Board of Trade said if Pearson’s problems aren’t resolved soon, it could negatively affect business travel, which picks up in the fall.
“From a reputational perspective, we don’t want to get to that point and we need to get in front of it,” said Jennifer van der Valk, a spokesperson for the trade board.
What went wrong?
Pearson is North America’s second busiest airport in terms of international traffic, following John F. Kennedy International Airport in New York City, according to the GTAA.
On top of dealing with staffing shortages, GTAA’s Gass said Canada’s stringent travel restrictions during the height of the pandemic virtually ground the industry to a halt, making the ramp-up “a lot steeper than other countries.”
Rotman’s Hejazi argues there should have been better pre-planning, and that Canada’s major airlines bit off more than they could chew.
“The airlines sold way too many tickets, more tickets than the airport capacity could handle,” he said.
WATCH | Baggage delays add to travel woes:
Luggage delays add to Canadian travel woes
1 month ago
Duration 1:54
Luggage delays are adding to the problems Canadian air travellers face, with some airports seeing mounds of bags piled up and some travellers not getting their luggage during an entire trip.
Canada’s two biggest airlines, WestJet and Air Canada, said they both proactively cut back their flights this summer by 20 and 25 per cent respectively. Air Canada cut thousands more flights in late June as travel chaos spread across the globe.
Meanwhile, both the GTAA and the federal government said they’ve been working hard to increase staff and speed up the movement of passengers through the airport. Efforts to streamline the passenger process include moving random arrival testing outside the airport, and adding more self-serve kiosks at customs.
“We’re seeing improvements, but we still have work to do to smooth the passenger journey,” said Gass.
Transport Canada also noted improvements, stating that for the week of July 11-17, 58 aircraft were held on the tarmac at Pearson, a decline of 84 per cent compared to the peak period during the week of May 23- 29.
“This decrease shows the significant progress that has been made to date to streamline passenger flows at Canada’s largest airport,” said Transport Canada spokesperson Laurel Lennox in an email.
Still, for peace of mind, business traveller Griffin plans to drive to Toronto for his next business meeting in September.
“I can predict when I’ll get there and when I’ll get home,” he said.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
