Sangster records first flight cancellation - Airport operator revising travel forecast as COVID-19 fear spreads

MBJ Airports Limited, the operator of Sangster International Airport, will revise its passenger forecast for the remainder of 2020 due to travel concerns surrounding the outbreak of the coronavirus, especially the markets from which the most of Jamaica’s travel traffic emanates.

Jamaica joined the growing list of countries with confirmed cases on Tuesday.

The revision also comes as Sangster’s, which is Jamaica’s and the Caribbean’s largest airport, had its first suspension of flights this week by Neos, an Italian carrier.

Neos operated twice weekly flights on a mid-sized 787 aircraft, which has a capacity of 240 passengers. On its website, the Neos flights from Italy to Montego Bay between February 28 and March 28 are marked as ‘deleted’.

Up to then, the airport had been seeing rising numbers. Passenger movements for January and February are higher than a year ago, but travel restrictions in Italy and China, as well as a rising aversion to travel are weighing on MBJ management.

The same holds for the entire travel and hospitality markets, which, as virus cases escalate, were weighing the potential industry fallout at a closed-door meeting led Tuesday by Minister of Tourism Edmund Bartlett at Jamaica Pegasus Hotel in New Kingston.

More cancellations of travel plans and flights are likely.

“Right now, traffic performance is positive above last year but the situation is very fluid and we have to watch it daily,” CEO of MBJ Airports Limited Shane Munroe told the Financial Gleaner. Munroe took over as the CEO of MBJ on February 1 of this year.

MBJ Airport is the vehicle used by Mexican company Pacific Airport Group, GAP, to hold and operate the Sangster International concession. GAP also took full control of the operation of the Norman Manley International Airport in Kingston last October, which it also operates under concession from the Airports Authority of Jamaica through a different subsidiary.

In February, total passenger movements which includes domestic and international travellers, totalled 426,000 at Sangster, up five per cent year on year; and 122,600, reflecting a 10.8 per cent increase in passenger traffic.

Erosion of gains anticipated

MBJ anticipates the gains will erode as the year progresses, as fears continue to mount about the transmission of COVID-19 and more deaths are added to the global tally.

In Italy, the virus has infected more than 10,000 and killed over 630 people. In the United States, where the most of Jamaica’s travel traffic emanates, there are about 28 deaths and more than 750 confirmed cases.

Worldwide, there have been more than 115,000 cases and 4,000 deaths so far – and the numbers keep rising.

MBJ is taking stock of that reality and its impact on travel to revise its expectations for business at Sangster International, especially in relation to source markets China, Italy, South Korea, Singapore, Iran and a few others, the airport executive said.

“Internally we are reviewing the numbers now, primarily the loss of Neos from Italy,” said Munroe. “The team will be working on a revised forecast,” he said.

He explained that the revision requires additional information from other airports to create an accurate projection, but expects the new forecast to be completed before monthend.

“We expected single digit growth for the airport this year. The industry was not in a bad position leading up to this year, and Jamaica so far this year between January and February has seen minimal impact,” he said.

But as for the wider Latin American region, carriers experienced a 3.7 per cent dip in demand in January, according to industry group, the International Air Transport Association, IATA.

“Traffic for Latin American carriers has now been particularly weak for four consecutive months, reflecting continued social unrest and economic difficulties in a number of countries in the region unrelated to COVID-19,” said IATA.

Capacity fell four per cent, it said.

steven.jackson@gleanerjm.com