Port Authority Has Lost $1.2B in Revenue. The Rest of the Year Will Help Define its Future.

Is the Port Authority slowly recovering from the revenue-crippling traffic and passenger downturns that the coronavirus inflicted on its bridges and tunnels, airports and PATH rail system?

The results vary by the facility, with ports being the best performer, and airports and PATH still stuck in a low traffic holding pattern, officials said during Thursday’s board of commissioners meeting.

Overall, the authority lost $1.2 billion in revenue through Sept. 30, which CFO Elizabeth McCarthy called the worst on record for the agency in recent memory. Losses increased by $450 million since June and the authority is on track to lose a predicted $3 billion in revenue, she said.

Compared to 2019, a record breaking year for PATH ridership, bridge and tunnel traffic and airport passengers, those numbers “declined sharply” McCarthy said. Aviation was down 84% compared to 2019 in the third quarter of 2020, PATH ridership was down 79% and bridge and tunnel tolls were down 14%, she said.

The authority’s continuing dismal airport traffic is a reflection of what is affecting airports and the airline industry across the nation.

Port Authority airports are among the hardest hit in the country for air service reductions, according to Airlines for America’s industry statistics.

New York saw the second highest service reductions of 65% year-to-date and New Jersey was fifth with a 57% reduction. Only Washington Reagan airport was worse at 72%.

TSA checkpoint volume is 62% below levels seen one year ago at the same time, Airlines for America reported. In New Jersey, that volume was down almost 75% and New York airports were down by 84%

Conversely, cargo handled at the authority’s ports exceeded 2019 levels by 3%, she said. September was the second month that port traffic increased over 2019.

Th actual amount of revenue collected in the next few months, and a decision on whether the authority gets $3 billion in requested federal aid to offset losses, will be major factors in deciding the future of the the agency’s $32 billion capital plan, said Rick Cotton, executive director.

“The paralysis in Washington is extremely frustrating,” Cotton said. “We need greater clarity on what’s happening in Washington before making a final decision on the capital program.”

Port Authority officials said at a transportation conference in New Jersey that only projects already under construction were guaranteed to move forward. In past months, Cotton identified the ongoing construction of Newark airport Terminal One and the redevelopment of LaGuardia Airport as projects certain to continue.

“We have made quite explicit statements because it is the only sensible course to pursue,” Cotton said. “The projects (are) well into construction, shutting them down is not a viable option. We are committed to completing those.”

Decisions haven’t been made about projects in pre-construction, other than to be on “high alert” on their timelines, he said.

“As we move forward, we will not over commit in terms of our capital capacity,” Cotton said. “We are keeping all projects in the plan at the moment, but not making major commitments and not moving projects on to construction.”

One exception is the LaGuardia Airport Air Train , which is in the federal environmental review process and moving it forward doesn’t require a substantial expense, he said.

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Larry Higgs may be reached at [email protected].

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