Covid-19 results in $6.9M revenue loss for CPA

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THE Covid-19 pandemic has caused an unprecedented decrease in tourist arrivals, resulting in a $6.9 million revenue loss for the Commonwealth Ports Authority in fiscal year 2020, CPA said.

During the Financial Affairs Committee meeting of the CPA board in the Aircraft Rescue and Firefighting classroom on Wednesday, CPA comptroller Skye A. Hofschneider presented two different scenarios of ports operations under a reduced budget. Both scenarios, she added, assume that the number of flights will drop throughout the fiscal year.

Commonwealth Ports Authority Executive Director Christopher Tenorio, left, looks on as CPA board members Thomas P. Villagomez and Pete P. Reyes listen to board member Barry Toves of Rota speak during a phone call. Photo by Emmanuel T. Erediano

The CPA total revenue requirement for the current fiscal year is $15 million, but Hofschneider said with the suspension of flights for eight months, they anticipate a revenue loss of $6,997,860. Of this amount, $4,286,376 represents aviation revenue and $2,192,358 represents non-aviation revenue.

In his own report, CPA Executive Director Christopher Tenorio said, “The Covid-19 pandemic has led to an unprecedented decrease in visitor arrivals from China, Korea and Japan.”

“As a result of this decrease in our visitor arrivals,” he added, “CPA’s revenues have dramatically declined. This dramatic decrease in revenues has made it necessary for CPA to implement the following measures: reduction of employees’ standard biweekly working hours to 64; continued budget review and realignment, adjustment of operating, maintenance and capital budgets and tenant rental fee assistance program.”

But, Hofschneider said, with the approval of CARES Act funding, CPA will again revise its budget projection to reflect the $22.7 million in federal financial aid.

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