Aéroports de Montréal (ADM) has issued $ 500 million worth of bonds to bail out while the pandemic to the melting of its revenues like never before.
The long-term debt long-term WMD will rise to 2 billion to $ 2.5 billion, an increase of 25 %. In spite of everything, the rating agencies, Moody’s and DBRS, have kept the credit rating of the organization.
“The issuance of these funds was necessary as our teams are working tirelessly to ensure the sustainability of the organization “, said yesterday Anne-Sophie Hamel WMD.
The money will maintain a portion of the activities of the airports of Dorval and Mirabel, as well as to continue the planning of some projects of renovation and expansion, she said.
ADM expects passenger traffic dégringolera of 35% to the Montréal-Trudeau airport by 2020, and this will cause a hole of $ 250 million in revenue. The fall in traffic has reached 47% in march and to exceed 90 % in April, according to DBRS.
To reduce expenses, ADM has ceased to use a runway at Montréal-Trudeau, closed the gates, cut of 45% of its capital budget and reduced the salaries of its employees non-unionized.
Help from Ottawa
ADM has also been beaten with an inch of Ottawa : $ 38 million in the form of an exemption from rent 10 months, and approximately $ 8.3 million through the wage subsidy emergency.
The pandemic has hit Montréal-Trudeau was in full growth. The traffic increased 4.5 % in 2019 and 5.6 % during the first two months of 2020. In the year 2019, not less than 20.3 million passengers passed through the airport, a new record.
The income of ADM, jumped 9.6% last year, which has contributed to the growth of the net profits of 32 % to almost $ 98 million.
According to DBRS, it is only by 2022 that ADM could review the recorded traffic in 2019.