Billy Bishop expansion's $4–5B cost raises financing questions

The Toronto Port Authority says it will fund a proposed Billy Bishop Airport expansion costing $4 to $5 billion entirely through its own revenue—but some aviation experts doubt that's realistic.

Port Authority CEO RJ Steenstra told a provincial committee last month the expansion would not require taxpayer money or federal government support. The authority, a financially self-sufficient arms-length federal agency, plans to cover borrowing costs through user fees, including the $29 airport improvement fee charged to each departing passenger.

Yet the port authority's 2025 financial records complicate that picture. Billy Bishop brought in $58 million in total revenue last year, with a net income of $16.9 million after operating expenses.

"To me the answer is it's not viable," said John Gradek, a faculty lecturer in supply networks and aviation management at McGill University. Even if the port authority doubled or tripled user fees, he said, it's hard to imagine $5 billion would be a sound investment for what remains a small regional airport.

Fred Lazar, an associate professor of economics at York University, estimates the authority would need to bring in at least an additional $250 million net revenue annually to repay borrowed funds. That would technically be possible if the expansion does lead to 10 million passengers yearly—up from 1.7 million last year, as the province has touted—but Lazar said there's a gap between spreadsheet projections and reality.

The port authority said a financing model will be developed after a plan is completed and costs are confirmed.