Nav Canada Reports Another Year-end Net Loss

 - October 27, 2020, 12:27 PM

Nav Canada, the private company that operates the country’s ATC system, reported a net loss of $584 million in Fiscal Year 2020 versus a $100 million net loss in FY2019. “This is reflective of the material decrease in revenue due to significantly lower air traffic,” according to the company’s financial results for the year ending August 31.

“The Covid-19 pandemic and the resulting economic contraction has had, and is expected to continue to have, a significant negative impact on global air traffic and on the aviation industry,” Nav Canada said. Until air travel fully returns to pre-Covid-19 levels, reduced air traffic activity will continue to have a “negative impact on the company’s operations and revenues.”

Nav Canada has thus taken several actions to adjust to the pandemic, including the elimination of 720 jobs—14 percent of the company’s workforce—and increasing customer service charges. The new service charges have been in effect since September 1, but WestJet, the second-largest Canadian air carrier, has filed a rate appeal. Nav Canada and the airline are in the process of considering mediation.

Meanwhile, Neil Wilson, who has served four years as Nav Canada’s president and CEO, plans to leave the company on January 30. A specific reason for his departure was not disclosed.