During its earnings report Wednesday, Vail Resorts said the two chairlifts that were to be installed at Park City Mountain this summer are headed to Canada.
Wrapping up its fiscal year, Vail announced Wednesday that overall pass sales are up 6% compared to last year, Epic and Epic Local pass sales are down 10% - and its unsuccessful attempt to put new chairlifts in at Park City Mountain cost it millions.
The city had approved the resort's application to upgrade the Silverlode and Eagle lifts in the spring, but that was successfully appealed by four residents, who claimed the upgrade didn’t match the resort’s pre-approved mountain plan.
But the chairlifts had already been delivered. Now the resort is moving them to a more receptive location - Whistler Blackcomb in Canada.
The company also failed to upgrade a lift this offseason at Keystone in Colorado, after the U.S. Forest Service found sensitive areas had been impacted.
Vail reported that the failed projects at Park City and Keystone are costing the company roughly $20 million.
Park City Mountain Vice President and Chief Operating Officer Deirdra Walsh told KPCW they will keep pursuing the permit and hope to eventually upgrade the Silverlode and Eagle lifts.
“Once we’ve resolved our permit with the city, we plan to purchase the lifts and equipment necessary for the installation," Walsh said.
"In the meantime, we will move the two previously purchased lifts to Whistler Blackcomb where, subject to approvals, they can have a positive impact on the guest experience in time for their 23/24 season. We’re very optimistic about the future of Park City Mountain and look forward to sharing more about upcoming projects and capital investments here soon.”
Pass sales were up nearly 50% in 2021 compared to the prior season, largely due to the company cutting prices by 20%.
The majority of the company’s skier visits come from pass holders.
In other news Wednesday, Vail plans to test a new feature this winter that will allow guests to download their pass or lift ticket on their phone. It would allow skiers to get scanned hands-free thanks to bluetooth technology. People will be able to stick with a plastic card if they preferred.
The feature is being tested this winter and will be fully implemented for the 23/24 season.
Vail’s stock (MTN) was up over 3% in after-hours trading Wednesday evening. CEO Kirsten Lynch attributed the strong fourth quarter financial results to visitation at the company’s resorts in Australia.
Shares of the company are down over 30% year-to-date. In the same timeframe, the S&P 500 is down over 20%.
