Luxury bus company Knutsford Express has witnessed a sharp decline in profits with management citing ongoing uncertainties in the global travel market as a key factor behind the downturn.

For the quarter ended February 28, 2025, the company’s net profit plunged by almost 96 per cent to total $49.9 million — down from $110.8 million. For the nine-month period consolidated earnings also fell to $169.6 million — down from the $268.6-million earned for the similar period in 2024.

CEO Oliver Townsend, in an assessment of the performance, told shareholders in a recent report that the, “Combined effects of Jamaica’s subdued passenger arrival numbers linger generally.”

Jamaica, traditionally a popular tourist destination, has experienced slower growth in recent quarters, culminating in a 0.3 per cent contraction during the October-December 2024 period. This, according to data provided by the Statistical Institute of Jamaica (Statin), largely stemmed from a 0.8 per cent decline in the arrival of foreign nationals to the island, primarily due to a 2.8 per cent reduction in arrivals from the United States — the primary source market responsible for more than 70 per cent of the island’s total arrivals. This was despite increased arrivals from other markets such as Canada (up one per cent), Europe (up 2.3 per cent) and Latin America (up 27.7 per cent).

The US travel market, said to be going through a period of unpredictability — the worst seen in over a decade — stems from the recent imposition of wholesale reciprocal tariffs by the Trump Administration which has pushed American consumers to become more cautious in their discretionary spending, particularly on travel. While some consumers continue to opt for more budget-friendly vacations others have moved to postpone or even cancel their trips altogether.

In light of the downturns, travel industry experts have urged companies operating in the sector to brace for a prolonged period of volatility in the US market, especially now as the impact of global supply chain disruptions, coupled with ongoing geopolitical tensions, suggest that consumer behaviour is likely to remain unpredictable for the foreseeable future.

As the busy summer travel season approaches, the industry is, however, closely watching to see whether consumer confidence will rebound and if travel demand will stabilise at sustainable levels.

Despite the significant drop in profits, Knutsford Express saw modest revenue growth during the period. For the third quarter, the company’s revenue amounted to $593 million, marking a 4.8 per cent increase over the $566 million recorded for the same period in 2024. For the nine-month period, revenue grew by 7.3 per cent, rising from $1.5 billion to $1.6 billion.

This revenue increase comes as the transport and courier services company continues to expand its fleet and improve digital services. The company has been investing heavily in infrastructure, with plans to inject millions in capital over the next three years. The investments are aimed at driving greater operational efficiency and expanding services offered by the company to all parishes, including St Thomas, where it planned to start operations earlier this year.

“Our ongoing efforts to bolster our fleet of coaches have resulted in total assets growing by over 10.7 per cent in the third quarter, moving from $1.9 billion to $2.1 billion,” the directors noted.

Currently undertaking the necessary reforms needed to embrace greater digital technologies, the company has been busy adding advanced passenger processing systems and improved boarding procedures.

“We will deepen our efforts to further digitise our processes in order to bring improved efficiencies to our operations and more importantly, to enhance both customer and employee satisfaction,” they further stated.