Express Catering anticipates stronger revenues in summer season
As geopolitical tensions and shifting foreign policies continue to affect air travel, Express Catering Limited (ECL), a leading food and beverage provider at Montego Bay’s Sangster International Airport (SIA), is optimistic about a boost in revenues as it heads into the summer season.
Coming off an almost flat third-quarter and nine-month performance, the company is hopeful that the upcoming summer months will bring stronger passenger traffic and increased sales.
Express Catering closed the third quarter of 2025 with revenues of US$7.4 million, just five per cent above the US$7.1 million earned for the same period of 2024. Similarly, for the nine-month period, revenue climbed slightly to US$18.9 million, up from US$18.7 million in the previous year. Despite these modest gains, the company’s profits, however, increased significantly — reaching US$1.8 million and US$3.2 million for the respective three- and nine-month periods.
For the first three months of 2025, air traffic at the usually busy SIA, operated by Pacific Airport Group, fell by approximately eight per cent to total 1.3 million passengers. As the larger of the island’s two main airports, SIA — which typically handles the bulk of tourist arrivals — has, since the start of this year, witnessed some slowdown, particularly as traffic from key source markets such as the US softened, following rising uncertainties over blowback from recent tariff impositions.
“Total passengers accessing the post security departure lounge of the SIA during the third quarter was 652,656. This generated revenue of US$7.43 million for a spend rate per passenger of US$11.38. For the similar quarter in the prior year, 705,116 passengers accessed the departure lounge. Total revenue of US$7.04 million was earned at a spend rate per passenger of US$10.05,” the company’s directors said in its latest financial report.
Despite the decline in total passenger numbers, the directors, however, noted that both total revenue and the spend rate per passenger showed improvement. The rise in the spend rate was seen as a key achievement, attributed to strategic initiatives implemented by ECL to enhance customer experience and maximise its revenue per traveller.
“For the nine months to date, the passenger total was 1.80 million. This generated revenue of US$18.89 million for a spend per passenger rate of US$10.49. The metrics for the similar nine months in the prior year were passenger total of 1.96 million passengers, revenue of US$18.67 million and spend rate of US$9.53,” the report noted.
Over the reporting period, a key area of improvement for ECL has been its ability to reduce costs, particularly in the areas of cost of sales and staffing. The company recorded a nearly seven-percentage-point improvement in cost of sales for the quarter and just under five percentage points for the nine-month period. These savings were mainly attributed to a combination of price increases, more effective portion control, and better agreements with suppliers.
“Savings were also recorded in salaries and wages, in line with the previously stated intention to better utilise resources. There was also a shift in cost allocation from property rental expenses to lease amortisation, in line with the increase in lease obligation under IFRS 16 rules,” the directors noted.
“The team intends to build on this trend for the rest of the year as we continue to review all cost categories for additional savings,” they added.
With its improved operational efficiencies and a rebound in passenger arrivals on the horizon, the Ian Dear-led company is hoping to capitalise on a potential spike in travel and deliver stronger results to close out the financial year. To this end, its leadership remains confident about the company’s prospects for the final quarter of 2025 and the upcoming summer season, which is expected to bring an increase in air traffic as vacationers return to the skies.
With the winter season almost behind, the company is now positioning itself for what it anticipates will be a busy summer, which should see more travellers flocking to Jamaica.
“The winter season is now ending but the outlook is for an excellent summer season, and we are ready to serve our many patrons,” the directors stated.