Good afternoon, everyone. On behalf of the GTAA, my colleague Ian and I are happy to be here to present to you today.
I guess I can start by saying this on behalf of the entire aviation industry—some of whom are represented here—and possibly everyone in Canada: COVID sucks. While it certainly feels like a race to the bottom with other hard-hit industries, in spite of these efforts to push through and do everything we can to survive these toughest times, the pain is particularly acute at Canadian airports, notably Toronto Pearson.
As you know, Toronto Pearson is Canada’s largest airport. In 2019, we welcomed over 50 million passengers. The airport is the anchor employer in the second-largest employment zone in the country, which contains 300,000 jobs. It feels like we see daily headlines about job cuts related to Toronto Pearson—from front-line security screening jobs, 500 of which were just cut two weeks ago, to advanced roles like air traffic controllers and engineering, or construction roles tied to the massive capital projects that were under way at Pearson.
We represent a vast ecosystem of what were once stable airport jobs that have now been decimated by the impacts of COVID on our sector. Pre-COVID, more than 400 companies operated on the grounds of Toronto Pearson. As well, 68% of our employees resided in Toronto and Peel region, as many of the local MPs represented here would know. These jobs and economic benefits aren't tied to just the area around Pearson. Pre-COVID, the airport contributed 6% of the province's GDP.
We are proud of the role airport workers played in bringing Canadians home at the beginning of the pandemic. Likewise, we are proud of the role we played in ensuring that supply chains remained open for vital cargo like personal protective equipment and vaccines.
Last week, the Prime Minister announced mandatory COVID-19 testing for all international travellers coming into Canada. This is a welcome requirement and it's one that the GTAA and other stakeholders have been recommending in terms of mandatory testing for some time. Arrivals testing began at Pearson on January 6 and was made mandatory by the Province of Ontario for any international travellers remaining in Ontario past this Monday. Studies show that arrivals testing quickly identifies asymptomatic positive travellers and allows them to be referred to public health for proper management. We support a science-based approach with clear standards on testing that can be implemented by Canadian airports. Last June, we moved quickly to introduce our own healthy airport program.
As you know, the aviation sector has been devastated by the impacts of the pandemic, as have many other sectors. At the airport, we have seen a reduction of jobs by approximately 68%. Over and above well-publicized airline layoffs, we've seen, as I mentioned, front-line jobs being reduced. In recent months, Toronto Pearson is experiencing a general decline in passenger numbers in the range of 85% to 90% compared with 2019. With the new restrictions implemented and announced last week, we expect those numbers to be further reduced.
In the third quarter of 2020, our passenger traffic was down 88% from the same period in 2019. Revenues were reduced by 63%. We made the difficult decision in July to reduce our workforce by 27%, eliminating some 500 roles. We also dramatically decreased operating and capital expenditures.
We have borrowed heavily and taken the unprecedented step of asking our bondholders to relieve us from our debt covenants for 2020 and 2021. We have shuttered basically 45% of Toronto Pearson. Unfortunately, the worst doesn't appear to be over. The year has begun with significant additional challenges. These include the emergence of new variants, continued and stringent travel restrictions, stay-at-home orders and general confusion related to testing requirements.