For the year ended March 31, 2024

Management’s Discussion and Analysis (MD&A) outlines CATSA’s financial results and operational changes for the year ended March 31, 2024. This MD&A should be read in conjunction with CATSA’s audited annual financial statements and accompanying notes for the year ended March 31, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS). The information in this report is expressed in thousands of Canadian dollars and is current to June 19, 2024, unless otherwise stated.

CATSA is an agent Crown corporation with a Board of Directors appointed by the Governor in Council on the recommendation of the Minister of Transport.

Table 1: Results for the Implementation of CATSA’s Mandate

The following table identifies key performance indicators (KPIs), which correspond to the organization’s performance in the management of its mandated operations. These KPIs are reported to the Senior Management Committee and the Board of Directors on a quarterly basis for oversight and management of the organization’s performance.

Effectiveness

Given the sensitivity of this performance category and its associated results, this data cannot be included in a public document.

Risk management is embedded into strategic decision-making and resource allocation within CATSA, thereby allowing the organization to make informed decisions at the corporate and operational levels. CATSA recognizes the principle of risk-reward, and manages its risks knowing that:

• The complete elimination of risk is not possible;
• Risk aversion is not the same as risk management; and
• Acceptance of risk can lead to positive outcomes for the organization.

CATSA’s overall risk attitude can be described as conservative and flexible.

Security is a shared responsibility in Canada’s aviation industry. CATSA works with airlines, airport authorities, and its third-party screening contractors, with particular focus on improving the traveller journey. As well, the organization engages with a number of Government of Canada departments and agencies, most notably its regulator Transport Canada, the Canadian Transportation Agency, the Canada Border Services Agency, the Royal Canadian Mounted Police, and the Canadian Security Intelligence Service.

Culture of Diversity, Equity and Inclusion

CATSA promotes a culture of diversity, equity, and inclusion in its security screening operations, screening officers and its own workforce. The organization has been undertaking a variety of initiatives to improve and promote these values. As well, CATSA prioritizes efforts to ensure that screening technologies and procedures respect Canada’s diverse population, to the extent that the regulatory framework will allow.

Passenger Traffic and Screening Operations

Supported by nearly 9,000 screening officers, employed through service agreements with third-party screening contractors, CATSA screened 66.6 million passengers in 2023/24, reflecting a 16.6% increase from the 57.1 million passengers screened in 2022/23, and 2% below pre-pandemic passenger traffic. In the coming years, it is anticipated that screened passenger traffic will further increase to an estimated 73.1 million in 2024/25, and 78.8 million in 2025/26.

Reflecting on my inaugural year as President and CEO of CATSA, I am genuinely impressed by the professionalism and resilience demonstrated throughout the organization, as well as the remarkable achievements attained. These accomplishments serve as a testament to the dedication and hard work of every individual, from our staff and Board of Directors to our valued partners and screening officers who, together, work to ensure the security of Canada’s air transportation system.

As I reflect on my first year as Chairperson of CATSA’s Board of Directors, I am filled with immense pride to be part of an organization entrusted with such a significant mandate that contributes to the security of air travellers. It has been a year marked by collaborative efforts, meaningful strides and excellent outcomes. I look forward to continuing this important mission in the years ahead.

Core Responsibility

As per the Treasury Board of Canada Secretariat Policy on Results, Crown corporations are expected to comply with the requirement to identify Core Responsibilities in order to support the publication of the Main Estimates, Supplementary Estimates and Public Accounts. CATSA has one Core Responsibility, which is to deliver effective, efficient and consistent security at designated airports.