Port Authority Expects Full Recovery From COVID By 2024: Audit

NEW JERSEY — Bridge and tunnel traffic is almost back to pre-pandemic levels, but airport and PATH train activity is still lagging from 2019, the Port Authority of New York and New Jersey says.

The Port Authority recently released the results of its audited 2021 financial statement, which included an update on the impact of COVID to ridership totals. Download the full report here.

According to the audit, all of the Port Authority’s facilities are expected to recover to their 2019 levels by early 2022 to 2024. The notable exception is the agency’s seaports, which saw 20.3 percent more cargo containers in 2021 than before the pandemic began.

PATH ridership is still trending down, with 2021 activity “well-below pre-COVID-19 levels” and a slow recovery on the horizon, the agency said.

But the situation is looking brighter at road crossings and airports in 2022, the agency stated:

“Weekday activity at the Port Authority’s bridges and tunnels is close to or at 2019 levels and appears headed to achieve pre-COVID-19 pandemic levels on a sustained basis in the coming months … Activity at the Port Authority’s airports is expected to recover closer to pre-COVID-19 levels during 2022, but is forecasted to be approximately 10% below pre-COVID-19 levels across the full year.”

However, it’s unclear if the current pace will continue, the agency said, noting that factors such as the recent omicron surge or the war in Ukraine may set the recovery timetable back.

About a third of the Port Authority’s revenues come from tolls and fares.

The agency manages facilities that include Newark, JFK and LaGuardia airports, the George Washington Bridge, the Lincoln Tunnel, the Holland Tunnel, Bayonne Bridge, Goethals Bridge and Outerbridge Crossing.

Other findings from the audit included:

REVENUES - As activity levels at Port Authority facilities continue to recover from the 2020 lows, 2021 revenues increased significantly with tolls and fares, percentage-based rentals, and airport parking primarily driving an $800 million increase in gross operating revenues from 2020. Despite these increases, gross operating revenues remain $400 million, or 7 percent, lower than pre-COVID 2019 levels. Similarly, Passenger Facility Charges remain $130 million below pre-COVID 2019 levels as a result of lower passenger activity levels at the regions three major airports.

NET OPERATING INCOME - During 2021, net operating income increased nearly $1 billion from 2020, primarily due to the continued recovery in activity levels across all facilities and continued cost containment measures. However, net operating income remains $70 million below pre-COVID 2019 amounts.

EXPENSES - In 2021, the agency’s operating expenses totaled $3.1 billion, which was a 5 percent or $160 million decrease from the 2020 operating expenses. Additionally, 2021 capital investment in facilities totaled $2 billion – a decrease of approximately $549 million, or 21 percent, as compared to 2020. The 2021 total also represented a decrease of $1.3 billion from 2019. This 40 percent decline in capital spending from 2019 levels resulted from a decision to moderate capital spending in response to lower net revenues as a result of COVID-19.

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