2023 Annual Report

CAA achieved significant milestones and made remarkable progress in various areas during the reporting period. I am delighted to highlight some key accomplishments:

Financial Performance: Despite the uncertainties in the global economy, CAA has maintained a strong financial position. Driven by strong passenger demand, our revenue streams have remained resilient, allowing us to continue investing in infrastructure upgrades and service enhancements.
Operational Excellence: Through the diligent efforts of our management team and staff, we have upheld the highest standards of operational efficiency and safety. Our commitment to excellence is unwavering and will remain a top priority going forward.
Passenger Experience: We have prioritized enhancing the passenger experience at YYG Charlottetown Airport, focusing on customer service, convenience, and amenities. Initiatives such as The Dock, our new outdoor departure lounge, have elevated the passenger experience at our airport.
Sustainability Initiatives: Recognizing our responsibility towards environmental stewardship, we have intensified our efforts to minimize the environmental impact of our operations. Our sustainability initiatives, which have resulted in achieving Level 3 Airport Carbon Accreditation, have yielded positive results in reducing our carbon footprint and promoting eco-friendly practices.
Community Engagement: YYG remains deeply committed to serving the needs of our local community. We have actively engaged with stakeholders, collaborated with community partners, and supported initiatives that contribute to the economic and social well-being of our region.

This annual report provides a comprehensive overview of our achievements, results, and strategic priorities over the past year as well as a look at our future. It reflects our unwavering commitment to transparency, accountability, and continuous improvement.

I would be remiss if I did not acknowledge and thank the talented and dedicated employees that make up the YYG team. Your unwavering commitment to deliver on our strategic priorities is driving the results we are sharing today.

As we look ahead, I am confident that with the continued support and guidance of the entire YYG team and board of directors, YYG will remain a leading aviation hub, delivering exceptional value to our passengers, stakeholders, and the communities we serve.

I would like to express my sincere appreciation to the entire board for your dedication, expertise, and commitment to the success of YYG. Together, we will navigate the opportunities and challenges on the horizon and ensure a prosperous future for our airport.

Steve Loggie
Chair

I take this opportunity to send a message outlining the exceptional assistance we received from an airport employee at YYG. My wife and I were travelling from YYG to Brisbane, Australia. There was a problem was the spelling of my wife’s middle name as it did not match her passport. The employee stepped up and did what we could not have done in such tight circumstances. Left to our own resolve we would have missed our flights, I do not have the words to express how grateful we were as (the employee) demonstrated her true character as a caring, kind and dedicated person. Thank you!

- Stan Ferguson

CEO's Message

2023 was the year we were all waiting for. After three challenging years for our airport and our industry, we were finally able to experience a full year of “normal” for air travel again.

Last year, we surpassed the 400,000 passenger mark for the first time in our airport’s history. Overall, 402,686 passenger movements represented an increase of 18% over 2022, and 5% over our previous record year in 2019. We are proud to lead the region in passenger recovery as the only airport to surpass pre-pandemic levels in 2023.

Numbers like this would not be possible without the support of our airline partners. For the first time ever, we had five airlines operating at YYG, to seven different destinations. Porter Airlines was our latest addition in 2023, starting non-stop service to Ottawa in May. We would also like to recognize and thank Air Canada, WestJet, Flair, and Swoop for their commitment to YYG, and to Prince Edward Island.

A major highlight of the year was the resumption of our air terminal building expansion plans, which had been put on pause since early 2020. In July we opened Phase 1a, The Dock, a new outdoor departure lounge post-security for our passengers to enjoy. This new outdoor seating area – the first of its kind in Canada! – provides a unique experience and much needed additional seating capacity during our peak season.

Another project that we are very proud of is the new Indigenous welcome piece that was installed in our arrivals area last year. In partnership with L’nuey, we unveiled new artwork commissioned by local Mi’kmaq artist Koady Sock and the Made in Mi’kma’ki team as well as a new land acknowledgement and a graphic highlighting P.E.I.’s two First Nations.

None of our achievements would have been possible without the hard work of our talented team members. I extend my deepest gratitude to each and every employee for their unwavering commitment, resilience, and dedication to our airport.

Looking ahead, we remain cautiously optimistic about the future, recognizing that challenges may persist but confident in our ability to overcome them through innovation, collaboration, and a steadfast commitment to excellence.

As we embark on the next chapter of our journey, I am confident that YYG will continue to serve as a vital hub of connectivity, driving economic growth, fostering global connections, and enriching the travel experience for all who pass through our gates.

Thank you to our extended airport colleagues, board of directors, customers, stakeholders and government partners for your continued support and trust in YYG. Together, we will soar to new heights.

Doug Newson
Chief Executive Officer

P
E
INNOVATION

Business Planning

Our Vision

To provide an exceptional Island experience.

Our Mission

To provide a convenient, modern, and sustainable airport that connects people and drives economic growth in Prince Edward Island.

Our Strategic Goals

Maximize Business Development.
Improve Passenger Experience.
Safe, Secure, and Sustainable Operations.
Organizational Excellence.
Strong Stakeholder and Community Support.

Air Service

In February, PEI played host to the 2023 Canada Winter Games. This multi-sport national event brought thousands of athletes, coaches, support staff, and spectators from all over Canada to PEI, kickstarting a record year for air travel in PEI. We are grateful to have had Air Canada add extra seat capacity for this event, during what is typically a slower time of year for our airport. The winter travel period also benefited from having both Swoop and Flair provide twice weekly Toronto flights for our passengers.

Buoyed by this strong start to the year, things only get better in the spring as we welcomed our newest airline partner, Porter Airlines. On May 16^th Porter launched non-stop daily Ottawa service and just a few months later, announced that the service would remain at YYG on a year-round basis. WestJet also returned with seasonal Calgary and Edmonton flights in late June, which marked five airlines operating to seven destinations during the summer season, both records for YYG. Over 68,000 travellers went through the terminal in August, shattering our previous record month by over 5,000 passengers.

In addition to Porter staying with us through the winter months, Air Canada made the decision to operate larger Rouge aircraft for their Toronto flights in November and December. This was a first for Air Canada at YYG during this period, which allowed us to see record movements for both those months to finish the year.

Passenger stats:


2019	383,183
2020	71,480
2021	111,160
2022	341,649
2023	402,686

P
ENGAGEMENT
I

Marketing &
Community Relations

In an era of burgeoning travel demands and evolving consumer preferences, effective marketing strategies are imperative for airports to remain competitive and relevant. Our airport recognizes the significance of a robust marketing approach not only to attract passengers but also to foster strong brand loyalty and enhance the overall passenger experience.

In a dynamic and competitive aviation landscape, effective marketing is essential for airports to thrive and succeed. By aligning our strategies with passenger needs, leveraging innovative technologies, and fostering strategic partnerships, our airport remains committed to delivering exceptional experiences that resonate with our travelers. As we continue to evolve and innovate, we remain steadfast in our mission to elevate the passenger journey and uphold our airport's reputation as a premier travel destination.

Some initiatives undertook in 2023 include:

Marketing partnerships and collaborations with all airline partners
Several influencer trips to showcase our non-stop destinations
Expansion of the Just Go Wall in our departure lounge
L’neuy partnership resulting in the installation of new Indigenous artwork
Held another successful YYG Runway Run in support of 3 community fridges across PEI

Community engagement is important to everyone at YYG. In addition to supporting community fridges in Charlottetown, Summerside, and Souris, the following list are the organizations and events we were pleased to support in 2023:

Queen Elizabeth Hospital Foundation
Prince County Hospital Foundation
Greater Charlottetown Area Chamber of Commerce
Summerside Chamber of Commerce
Confederation Centre of the Arts
Gold Cup Parade
PEI International Shellfish Festival
2023 Canada Winter Games
Stars for Life Foundation/Mayors Cup Golf Tournament
My Journey to Just Live
CBC’s Feed a Family Campaign (Upper Room Food Bank)
Ocean 100 Stuff-A-Bus Food Drive (Upper Room Food Bank)
Holland College Tourism & Travel Management Program

YYG also plays an active role in working with, and supporting, the province’s tourism industry. This industry is vital to our success as the majority of our traffic arrives during the June to September period. In late November, we were grateful to have been recognized for our commitment and significant contribution to the tourism industry on Prince Edward Island when we received the Premier’s Award for Tourism for 2023. The award was presented by Premier Dennis King at the Tourism Industry Association of PEI Annual Tourism Conference.

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I arrived in Charlottetown without my baggage. The lost baggage handler James was just fantastic he's a true ambassador. Very professional, great listening skills and lots of empathy. He explained exactly what he would do and he did everything promised including calling me to keep me updated. Excellent service thank you.

- Robert Brain

Operations

In April 2023, we achieved a significant milestone with completing the rollout of Phase 2 of the common use platform across all gate and counter positions. As we move forward, the integration of counter and gate usage data into our summer planning processes will enable us to optimize operations, particularly during peak periods. Collaboration with Halifax International Airport Authority (HIAA) continues as we work towards enhancing redundancy and failover capabilities within the system.

In the summer of 2023, Charlottetown Airport underwent a significant operational change by introducing aircraft pushbacks on the main apron. This transition demanded meticulous planning and coordination with all airside operators. In April, a thorough safety case review was conducted involving all stakeholders to identify and mitigate potential risks associated with the adjustment in airside operations. This transition also required active involvement from airlines, including procurement of pushback tugs, toe bars for each aircraft, and extensive staff training. Throughout May, our efforts were dedicated to collaborating with airlines to complete FIT (Functionality, Integration, and Testing) tests of their equipment, establishing airside apron procedures for the storage of equipment within safety parameters, and conducting final FIT tests with actual aircraft prior to implementation in June.

Despite the complexities involved, we remained committed to ensuring a seamless transition to pushback operations, enhancing efficiency and safety standards at YYG. Our proactive approach and collaborative efforts in the implementation of push backs has paved the way for successful execution and continued operational excellence.

The winter season of 2023 presented our operations team with a significant challenge in the form of freezing rain. This weather phenomenon posed considerable difficulties in maintaining operational efficiency and safety standards. Despite these challenges, our dedicated team worked tirelessly to mitigate the impact on airport operations, ensuring minimal disruptions to service delivery.

During the summer of 2023, we engaged a consultant to conduct a passenger experience audit. As an outcome of that audit we created a new training program that all airport employees will receive in person in 2024 – The YYG Connection. The goal of the training is to encourage a customer-centric mindset among the YYG team and partners, and to emphasize the importance of positive interactions and efficient service; all in the interest of living YYG’s brand promise and creating memorable experiences for passengers. Understanding the unique challenges and dynamics of the airport environment is key, so the sessions will include a mix of presentation style theory and interactive methods like group work to simulate real-life scenarios.

CAA engaged Optiv to provide an assessment of its security controls against the Center for Internet Security (CIS) Critical Security Controls (CSC) v8. The CIS Controls are a prioritized set of Safeguards to help mitigate the most prevalent cyber-attacks against systems and networks. Optiv utilizes a tabletop and working session approach to review our information security domains and practices against the CSC domains. The high-level discussion includes a review of the information security practices, identifying areas of improvement, enabling a consistent and objective approach to reviewing, and building sound security controls. The Critical Security Controls Assessment was delivered in December where Optiv delivered a Critical Security Controls Assessment Workbook and Presentation to CAA management. Included were the findings, implementation Group 1 scores, maturity level aggregate scores, implementation percentage by control, and recommendations for improvement within the workbook for 2024 planning.

Environment

YYG’s journey with Airport Carbon Accreditation (ACA) began in 2018, when we joined the program at Level 1 based on our 2017 footprint. Since then, we've undertaken numerous initiatives to progress to Level 2 in 2021 and most recently, to achieve Level 3 in 2023. Levels 1 and 2 of the program focused on Scope 1 (emissions from CAA-operated buildings and vehicles) and Scope 2 (emissions from purchased electricity for CAA airport operations) emissions. In Level 3, our data scope extended to encompass Scope 3 emissions, which includes emissions owned and controlled by airport tenants and other stakeholders. Moving forward, we're committed to ongoing collaboration internally and with stakeholders to decrease the airport's carbon footprint and further advance in the ACA program. We aim to motivate and support our tenants in lowering emissions, nurturing a shared dedication to environmental sustainability throughout the entire airport.

In 2023, we made the transition to our two new aircraft rescue and firefighting apparatus (ARFF) trucks using a more environmentally conscious, fluorine-free firefighting foam. By doing so, we'll be equipped to address emergencies, fulfill annual training obligations, and enhance safeguards for soil, groundwater, and surface water at the airport.

The team developed our first-ever Sustainability Plan throughout 2023, officially unveiling it to the public in early 2024. The Plan sets out goals and key strategies for 2024 through to 2028 in the areas of environmental, social, and governance best practices. The environmental section of the plan is broken down into three subsections; Climate Change, Environmental Management, and Green Construction. The Plan will be updated in 2028 and every three years thereafter to verify our progress towards achieving our goals and consistently revising them as needed.

When we went through the metal detector at YYG my wife had no problem but my suspenders set it off. Out came the wand and he patted me down checking me over. He was very good as he was checking me over and he explained what he was doing and where he was going to check. He was very professional. The team acted in a very professional manner. They have a job to do, and they did it well.

- Glenn St. Arnaud

Capital Program

The 2023 capital program was primarily focused on the initiation of a plan to grow our overall terminal footprint over the coming years. SableArc and CAA embarked on a collaborative endeavor to design a multi-year terminal expansion program. This joint effort represents a significant milestone in the evolution of YYG, signaling our commitment to meeting the growing needs of passengers, airlines, and stakeholders while enhancing the overall airport experience.

The overarching goal of the terminal expansion program is to modernize and expand airport facilities to accommodate increasing passenger volumes, enhance operational efficiency, and elevate the overall passenger experience. Key focus areas of the design include:

1. Increased Capacity
2. Enhanced Passenger Experience
3. Efficient Operations
4. Future-Readiness

In July, we completed construction of The Dock opening this innovative space to passengers just in time for the peak season. The opening marked the culmination of months of hard work, dedication, and collaboration, and celebrated the successful realization of a key milestone in the airport's expansion journey. The Dock is an outdoor space that is the first of its kind in Canada and added much needed additional seating post security.

The installation of electric vehicle charging infrastructure in our short term parking lot opened in the fall. This initiative not only addressed the growing demand for electric vehicles, but also aligns with our broader sustainability objectives and corporate responsibility initiatives. The inclusion of EV chargers in our capital program reflects our forward-thinking mindset and our recognition of the increasing importance of sustainable transportation solutions. By providing access to EV charging stations, we are facilitating the adoption of cleaner, greener modes of transportation for passengers, employees, and visitors.

We also underwent a significant expansion to our operational fleet with the acquisition of two new Aircraft Rescue and Firefighting (ARFF) trucks, a tractor for grass cutting, and several half-ton trucks. These strategic investments underscore our commitment to enhancing safety standards, operational efficiency, and emergency response capabilities at the airport.

Below is a summary of the 2023 capital program spend by category.

Category	2023 Actuals
ATB & CSB Assets	$2,700,310
Fleet & Equipment	$391,649
Groundside Assets	$176,203
Recurring Capital	$177,182
Total	$3,445,344

PEOPLE
E
I

Human Resources

The past year saw some wonderful career milestone achievements and the opportunity to welcome new and returning members to our team at YYG.

We were very pleased to welcome David MacAulay to our team as a seasonal employee during the winter season. In addition, we welcomed back seasonal employees Robert Murchison, Chris Koughan and Jamie MacKinley.

To help assist our busy terminal during the peak summer of 2023, we were also very fortunate to have Jose Diaz, Alec Mader, and Zac Elsinga join our team as summer students in the role of Passenger Experience Representative. Our students were a great addition to our team and helped deliver on the exceptional passenger experience that we strive for on a daily basis.

A few other highlights of 2023 included Chris Walsh and Keith Panton reaching their fifteen and ten-year respective career milestones and Colton Holroyd completing his first winter season as a Field Foreman.

We would like to acknowledge the entire YYG team for their dedication and commitment in creating a successful 2023 and helping shape a strong and optimistic outlook as we move forward.

Financial Review

YYG was pleased to welcome record passenger levels in 2023 with total passenger traffic surpassing 400,000 for the first time. This resulted in strong financial results driven by Passenger Facility Fee (PFF), concession, parking and aeronautical revenues with increased interest revenues driven by prime interest rate hikes.

The Airport Authority received funding during the year from the Province of Prince Edward Island for air service and route development as well as from ACOA through the Regional Innovation Ecosystem program and Hurricane Fiona Recovery Fund. In addition, property tax grants were provided by the City of Charlottetown and the Province of Prince Edward Island.

We would like to acknowledge and thank our funding partners for their valued support in continuing to help YYG deliver a convenient, modern and sustainable airport that connects people, and supports economic growth in Prince Edward Island.

For best experience when viewing on a phone, view tables in landscape orientation.

2023 Actual vs. Business Plan Forecast

	Plan	Actual	Difference	Explanation
Revenues	12,116,514	13,620,875	1,504,361	Record passenger levels drove PFF, concession and parking revenues while prime interest rate hikes increased interest revenues.
Expenses	10,195,522	10,009,425	186,097	Decreased maintenance, depreciation, utilities, cost recovery and travel costs.
Capital	12,922,500	6,127,324	6,795,176	Deferral of certain terminal expansion costs to future years.

Business Plan Forecast 2024 – 2028

Year	2024	2025	2026	2027	2028
Revenues	15,014,357	14,569,125	14,810,067	15,243,763	15,636,869
Expenses	12,062,024	12,146,613	13,119,100	13,662,821	14,097,899
Capital	9,200,358	17,239,724	10,238,679	6,815,592	3,995,000

Note: Revenues includes Passenger Facility Fees, operations, subsidies, and investment income.

*In accordance with its lease with Transport Canada, Charlottetown Airport Authority is required to report on all contracts in excess of $136,270 ($75,000 in 1994 dollars adjusted by the Consumer Price Index) entered into during the year which were not awarded on the basis of a public competitive tendering process. In 2023, YYG entered into two sole sourced contracts:

A sole source contract for $1,440,760 was awarded Fitzgerald & Snow (2010) Ltd. for the completion of a new outdoor seating area. This decision was made in consultation with our architecture firm to ensure the project was completed on schedule in time for the busy summer season.

A sole source contract for $277,910 was awarded to Halifax International Airport Authority (HIAA) for the provision of common use equipment, implementation services, and annual support services. HIAA is the current provider of our common use program, and sole sourcing was necessary given the specialized nature of the equipment and services required.

Board Governance

Board of Directors

The Charlottetown Airport Authority Board of Directors is composed of twelve directors, nine nominated by the respective entities and three appointed by the board itself, as well as a Corporate Secretary. YYG Charlottetown Airport is very fortunate to have a dedicated group of community leaders and visionaries who consistently put the best interests of the airport at the heart of their discussions.

Directors are appointed/nominated by the following entities:

Government of Canada (2)

Province of Prince Edward Island (1)

City of Charlottetown (2)

City of Summerside (1)

Federation of Prince Edward Island Municipalities (1)

Greater Charlottetown Area Chamber of Commerce (1)

Tourism Industry Association of Prince Edward Island (1)

Charlottetown Airport Authority (3)

The Airport Authority’s Board of Directors meets six times a year with committee meetings taking place on an ongoing basis. The board has five active committees:

Executive
Finance & Audit
Infrastructure & Development
Governance
Nominating

*Board of Directors remuneration consisting of honorariums and per diems $69,804.

Code of Conduct for Directors

All directors of the Authority are required to comply with a Code of Conduct and rules concerning Conflict of Interest. These require that directors avoid and refrain from involvement in conflict-of-interest situations. There were no instances of conflict of interest brought before the Board of Directors in 2023.