JAMAICA’S two key international airports brought in a collective US$66.58 million ($10.20 billion) in revenue during the first quarter for concession operator Grupo Aeroportuario del Pacífico, S.A.B. de C.V (Pacific Airport Group), as both facilities processed 1.85 million passengers.

MBJ Airports Limited recorded an eight per cent improvement in total passengers processed to 1.46 million passengers, with a monthly historic high 522,900 passengers going through the Sangster International Airport (SIA) in March 2024. This translated to a five per cent increase in total revenue to US$44.35 million during the period, however there was a six per cent reduction in operating income to US$17.11 million due to an increase in concession taxes and cost of services. Net profit was US$9.12 million for the quarter.

“We have been working very well with the authorities, indeed in the GAP Day we had the Minister of the Transportation [Daryl Vaz] in Jamaica and the communication, the relationship is very good. We have been working and we have a final proposal, however we haven’t achieved the final document signed to be applied but we feel very comfortable with both results in the negotiations for both airports. So, we are fine for now but we cannot disclose yet the result of the negotiation,” said Chief Financial Officer Saúl Villarreal García on the company’s April 24 earnings call with analysts about Jamaican regulatory reviews.

PAC had submitted a petition to review the tariffs, capital expenditures, and the terms and conditions of the concession agreement for both airports due to the impact of the COVID-19 pandemic. PAC operates both airports under concession agreements set to expire in 2033 and 2044 for SIA and Norman Manley International Airport (NMIA), respectively. These agreements required PAC to spend particular amounts on the improvement of both facilities.

MBJ’s capital development programme for 2020-2024 was set at US$111.7 million while NMIA’s capital spend was set at US$101.4 million for the same period. They received deferrals during the 2020 and 2021 periods for both airports and currently expect a decision this year on their petition. However, the airport operators have been spending heavily on improving the airports.

MBJ spent US$18.6 million during 2023 on the expansion and renovation of the terminal building, modernisation of equipment such as replacement of the airports’ IT system, jet bridges and X-ray machines, plus installation of another 2MW solar photovoltaic power plant. PAC Kingston Airport Limited (PACKAL), which operates NMIA, spent US$5.7 million largely to rehabilitate restrooms and for the procurement of a new passenger loading bridge.

At their investor day on April 17 PAC outlined how SIA should have a US$120-million investment over the next three years for the terminal expansion. This is meant to complement the eight new international routes in 2023 and new route in 2024, along with the new 12,300 hotel rooms between 2024-2026. NMIA is set to receive a US$150-million investment over the next four years which will include a 300-metre runway extension over the sea, rehabilitation of the Customs hall and arrivals and runway overlays, among other things. This will be facilitated by Shane Monroe and Sitara English-Byfield who are the first Jamaican CEOs of MBJ and Packal, respectively.