Caribbean Airlines is getting rid of its direct flights from Jamaica to Florida.  Will this affect prices on other airlines?

So, Caribbean Airlines recently announced that it will be discontinuing its flights from Kingston and Montego Bay, Jamaica to Fort Lauderdale, Florida, effective November 2.

The airline, which is owned by the Trinidad and Tobago government, said the decision is part of a “network optimisation programme.” 

Essentially, they’re looking at which routes make money and which ones don’t, and focusing on the ones that do better. 

T&T Prime Minister Kamla Persad Bissessar announced that the airline does not operate a single profitable route.  She’s given management two years to get the company’s finances in order.

So I guess with that warning looming large, this is the company’s first step to fixing things. According to Caribbean Airlines, there was already low demand on the Jamaica to Florida flights. In May of this year, only 32% of the seats were filled on the flights between Kingston and Fort Lauderdale.  It was a similar case on the Mobay route. And that ratio is far too low to cover costs, which are rising.  Fuel prices are up, airport fees are up, and paying crew is expensive.  Plus when fewer people fly, costs per passenger also go up. 

Then there’s the strong competition from US airlines like JetBlue, Spirit, and American in South Florida, which made it hard for Caribbean Airlines to win many customers on those routes.  The airline said it needs to reallocate resources focusing on routes that are more successful. 

Passengers who booked flights after November 1 will get full refunds. The airline also said it will use other gateways in its network to keep serving Jamaica. 

But with one less carrier on the route, will the other airlines now raise their prices?  That remains to be seen.  Jamaicans do still have a lot of other options, so maybe not.

And that’s the bottom line.