Airlines are cancelling flights to Cuba left and right. But why and how’s that going to affect the country’s economy?

So, Cuba is facing a serious fuel crisis right now, and it’s starting to affect almost every part of daily life.

Airlines have been told they won’t be able to access jet fuel at several of the country’s main airports, including Havana’s largest international hub. That’s caused airlines to cancel flights, schedule changes and make refuelling stops in other countries just to complete their routes.

Some governments, including Canada and the UK, have even warned travellers about disruptions. But it’s not just tourists feeling it.

Inside Cuba, it’s almost impossible to get gas. Plus the limited supply has caused public transport to be scaled back. Rolling blackouts are once again part of daily life. Businesses have also started operating on reduced hours and some state services are being rationed to conserve energy.

So why is this happening now?

See, Cuba, like a lot of Caribbean countries, depends heavily on imported oil. It doesn’t produce enough to power the island on its own and has traditionally relied on allies like Venezuela and, more recently, Mexico for fuel. We all know what’s happening in Venezuela, so those supply flows have stopped.

At the same time, the United States has tightened sanctions and applied additional pressure aimed at restricting Cuba’s access to oil and foreign currency. That makes it harder for the island to secure shipments or pay suppliers. When fewer tankers arrive, shortages show up almost immediately because Cuba’s energy system was already fragile.

The country has ageing power plants, limited foreign exchange reserves and an economy still recovering from the pandemic’s hit to tourism. So when oil shipments slow down, there isn’t a lot of wiggle room.

But the aviation issue is especially serious because tourism is one of Cuba’s main sources of foreign currency. If flights are disrupted, hotel bookings fall. If hotel bookings fall, the government earns less hard currency. And if the government earns less foreign currency, it becomes even harder to pay for oil. 

It’s a cycle.

And that’s the bottom line.