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Regina’s airport is balancing growth ambitions with rising costs and uncertain travel demand.
At the Regina Airport Authority’s annual general meeting, CEO James Bogusz outlined the biggest pressures and opportunities facing the airport — from fuel prices and U.S. flight subsidies to new routes, privatization discussions and the broader economic outlook.
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“We’re going to keep delivering value to the airlines to encourage them to fly,” Bogusz said. “We keep our fees and charges low, so when an airline lands a plane in our market, it costs less, which means they have a better chance of profitability.”
Revenue guarantees remain key
One of the biggest talking points was the future of minimum-revenue-guarantee subsidies used to support direct U.S. flights.
Bogusz said the airport currently has agreements in place for Minneapolis and Denver, and he’s urging the province to continue backing them.
“It would be our strong encouragement to the provincial government to consider continuing on with providing a minimum revenue guarantee on these flights,” he said.
The issue has taken on added importance after Saskatchewan extended a $2.2 million annual backstop for Saskatoon’s Minneapolis route, which hit its maximum payout in most years of the original deal.
Bogusz said those supports are critical as demand for U.S. travel shifts.
“There’s some Canadians who are saying, ‘I’m not going to go to the U.S. right now,’” he said. “So having any reduction to demand … is never a good thing.”
He added that while the Denver route is meeting expectations, Minneapolis has struggled in recent months.
Fuel prices driving costs
Rising fuel costs are adding another layer of pressure across the industry.
“We’ve got Jet A, which has doubled in price in recent months,” Bogus said.
He said that’s already being reflected in ticket prices, with some fares increasing by $50 to $100 depending on the route.
“Profitability for airlines is of critical importance to maintain these routes,” he said.
Bogusz warned that if those pressures continue, airlines could start making adjustments.
“You’ll see trimming or tweaking of existing routes … maybe an airline may not bring back a particular route… because it lacked profitability,” he said.
Ottawa route and Porter push
On the growth side, Bogusz said the airport is actively working to bring new routes to Regina, with Ottawa at the top of the list.
“Ottawa is unserved. We think that Ottawa is the play for Porter (Airlines),” he said.
Saskatoon already offers a service to the capital, but Bogusz said Regina is pitching aggressively, including offering incentives to airlines.
“We’ve given them… a very aggressive incentive package,” he said. “But Porter has to be able to make this as a business decision.”
He noted that attracting service is more difficult for smaller markets, especially when airlines face challenges maintaining routes in larger cities.
“If an airline is having trouble being year-round in a larger market, it makes it more difficult when the smaller city is pitching on the flight,” he said.
Privatization discussions
Bogusz also addressed ongoing federal discussions around airport privatization, saying Regina already operates as a private, not-for-profit entity.
“The Regina Airport has been, and will continue to be, a private company,” he said.
He said potential changes could involve opening the door to new types of investment, such as pension funds, rather than traditional bank financing for large projects.
“We haven’t had those consultations yet,” he said. “But we welcome that discussion.”
Bogusz added that the airport’s current model ensures revenue is reinvested locally rather than paid to shareholders.
Economic outlook and uncertainty
Looking ahead, Bogusz said the aviation sector remains highly sensitive to economic shifts.
“I’ve been doing this for 25 years; it’s a very dynamic industry,” he said.
While he doesn’t expect a major downturn like during the COVID-19 pandemic, he said airlines will continue adjusting routes based on profitability.
“Do expect little schedule adjustments in the coming months if these headwinds continue,” he said.
Despite those challenges, Bogusz said the airport is in a stable financial position, reporting a loss of about $800,000 but generating more than $9 million in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and continuing to invest in infrastructure.
Bogusz said the long-term goal remains growth while keeping costs low enough to attract airlines and passengers.
“We are looking at growth to watch our airport be better than it’s ever been,” he said.
He also thanked travellers for supporting Regina’s airport despite having other options.
“People have choice but people have been supporting YQR,” he said. “We’re going to keep pushing forward.”
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