LIAT passenger levels are far lower now than in recent years
Caribbean tourism continues to increase year-on-year but airline seat capacity in the region is in decline despite globally air travel increasing by 1.5 per cent.
The Caribbean recorded the second-largest decline in airline seat capacity in July globally after the Middle East when compared with year-earlier levels, according to the OAG, a UK-based travel analytics firm.
“Global capacity this month has increased by 8.3 million seats, compared to July 2025, equivalent to an increase of 1.5 per cent,” stated the OAG findings. Five regions globally, however, declined in July. Caribbean capacity fell 4.2 per cent year-on-year, a reduction of around 200,000 seats. The Middle East was down 7.0 per cent.
The Caribbean’s contraction for July continues a trend from earlier months. The decline comes amid the combined effects of Hurricane Melissa’s impact on hotel stock and airport infrastructure in Jamaica, the collapse of Spirit Airlines in May, rising fuel costs linked to the conflict in the Middle East, and Caribbean Airlines’ decision to cut unprofitable Eastern Caribbean routes.
Globally, capacity grew 1.5 per cent to 565.5 million seats, driven primarily by Europe, which added six million seats, and North East Asia, which added 3.4 million. Central and Western Africa posted the fastest growth rate at 16.9 per cent.
Earlier this year LIAT’s then-CEO Julie Reifer-Jones said taxation was partly the problem. LIAT, she said, was now moving 750,000 passengers annually compared to one million in the past.
Reifer-Jones said: “The taxes are acting as a significant deterrent to travel across the region. Because we are connecting passengers across several territories, we are actually picking up taxes from three or four territories every time somebody flies from one destination to the next and we also have the issue of in transit taxes because we’re stopping at St Maarten or we’re stopping in St Vincent or we’re stopping in Barbados.”
She said that while LIAT 1974 had raised its base fare by only three per cent between 2009 and 2016, taxes had increased by about 56 per cent.
17 Jul, 2023
24 Mar, 2025
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