EXPRESS Catering Limited swung to a quarterly loss after Hurricane Melissa hammered passenger traffic through Sangster International Airport, cutting the airport concessionaire’s revenue by 40 per cent and forcing a sharper focus on costs as tourism recovers.

The company reported revenue of US$2.97 million for the September-to-November quarter, down from US$4.98 million in the corresponding period a year earlier. Despite reducing administrative expenses by 19 per cent, Express Catering generated operating profit of just US$27,979, compared with US$1.07 million in the prior period.

The sharp drop in passenger traffic and higher finance costs pushed the company to a net loss of US$536,680, compared with net profit of US$443,475 a year earlier.

“The available room count was severely reduced due to the damage to hotels and other operators that provide accommodation. Stopover visitor arrivals were cancelled as a result, and it will be some time into the second half of calendar 2026 before the full complement of room count is restored,” stated the quarterly report signed by CEO Ian Dear and director Andrew Spencer.

Passenger traffic through the airport’s departure lounge fell sharply during the quarter, with 157,000 fewer passengers compared with the same period last year. The month of November alone accounted for 133,000 fewer passengers.

Data from airport operator Grupo Aeroportuario del Pacífico showed that traffic at Sangster International Airport fell 73 per cent in November, declining from 373,000 passengers to 99,100.

“We virtually had zero visitors. The only people we had were people coming in to help with the rescue and response,” Dear said in a call with the Jamaica Observer on Tuesday.

Express Catering operates food and beverage concessions at Sangster International Airport, including brands such as Starbucks, Auntie Anne’s, Cinnabon, Dairy Queen and Bob Marley’s One Love Restaurant. The company’s performance is closely tied to passenger traffic through the airport.

Despite the difficult quarter, Dear said signs of recovery are emerging as hotels gradually reopen along Jamaica’s north coast.

“We are definitely seeing positive momentum and as it stands right now, I think every hotel room that is open in Jamaica, certainly on the North Coast, is seeing some strong, great occupancies,” Dear noted.

Several hotels are expected to reopen in stages, including three Sandals properties in May, four Royalton hotels by September and eight Hyatt properties by November. Dear also noted that short-term rentals have partly helped to offset the shortage of hotel rooms.

Airbnb, he said, has somewhat filled the gap created by the temporary loss of hotel capacity.

Express Catering’s quarterly report indicated that stopover arrivals during the current winter tourism season could fall by as much as 40 per cent compared with the previous year.

Despite the near-term challenges, Dear expressed confidence in the longer-term outlook for Jamaica’s tourism industry.

“What’s going to happen, by all indications from all of our sources, is that the next winter season is going to probably be our strongest we’ve ever seen in our history. We’ll have additional rooms that will be opened, our existing rooms will be expanded, and we have new hotel rooms coming online. We think we will see significant increase in arrivals,” the CEO said.

In the meantime, the company is focusing on stabilising operations while continuing modest upgrades to its facilities.

Dear said the company invested US$92,798 over the six-month period refurbishing its airport food court.

However, plans for a US$5.46-million investment in licences and franchise rights have been delayed as the company prioritises restoring its core operations. The investment was intended to support expansion beyond the tourism market and into Jamaica’s wider food and beverage sector, with the first outlet planned for the landside area of Sangster International Airport.

“That’s slowed down a bit because we’re focused on just getting back on track. We want to focus on the core business, get it stabilised, momentum happening again. Once that’s solidified, we can refocus that effort,” Dear said.

For the six months to November, Express Catering reported revenue of US$9.76 million, down 15 per cent from the previous year. Net profit for the period declined by about a third to US$974,870, compared with US$1.45 million in the prior period.

The company generated US$3.76 million in net profit for its May 2025 financial year.

Express Catering’s total assets increased slightly to US$59.69 million, while cash stood at US$129,760.

Dear said the company has received strong support from lenders as it navigates the downturn in tourism.

“We’re getting strong support and a vote of confidence from our lenders. Everybody is understanding our business model, we have a good solid team, we have a strong business, we have great brands. These are factors outside of our control, but it’s a matter of how you respond and communicate,” he said.