Bartlett downplays local impact of Spirit Arlines bankruptcy
Published:Tuesday | November 19, 2024 | 12:07 AMJanet Silvera/Gleaner Writer
WESTERN BUREAU:
Low-cost carrier Spirit Airlines’ Chapter 11 bankruptcy is unlikely to significantly impact visitor arrivals to Jamaica, according to a number of the island’s tourism experts.
Spirit Airlines, the biggest US budget airline, filed for bankruptcy due to financial losses and debt payments. It transports approximately 100,000 passengers annually to the busy Sangster International Airport in the island’s tourism hub, Montego Bay.
“Bankruptcy for the US is a tool for reorganisation, so you can get a chance to discount your debt and reorganise yourself. We won’t lose any seats because they are not going to stop flying,” Tourism Minister Edmund Bartlett told The Gleaner on Monday.
Despite being the 10th-largest airline serving the airport, Spirit’s market share in Jamaica remains relatively small at three per cent. It operates flights to the island primarily from Fort Lauderdale, with seasonal service from Orlando.
In comparison, American Airlines, which also filed for Chapter 11 bankruptcy in 2011 and has since returned to profitability, remains the leading carrier into Jamaica. It holds a commanding 21 per cent market share, bringing in about 900,000 passengers annually to Montego Bay. JetBlue follows with a 16 per cent share, while Delta Airlines ranks third with 13 per cent.
“The markets that are served by Spirit into Jamaica are well served by other airlines. Caribbean Airlines [is] resuming daily service between Fort Lauderdale and Montego Bay, so if Spirit were to pull out, other carriers would be able to serve the market,” said a tourism official, who did not have permission to speak with the media.
Spirit has reportedly lost more than US$2.5 billion since the start of 2020 and faces looming debt payments totalling more than $1 billion in 2025 and 2026.
On Monday, it said that flights, ticket sales, reservations and all other operations continue as normal.
Meanwhile, arrivals into the Sangster International from January to October is 2.1 million visitors, two per cent below the corresponding period last year.