PASSENGER traffic through Sangster International Airport fell 40 per cent in the aftermath of Hurricane Melissa, halving revenue and sharply cutting profits at Express Catering Limited (ECL), even as the company moves to expand its food offerings ahead of an expected tourism recovery.

Express Catering Limited said it is preparing to launch two new food court concepts at the airport, positioning for a rebound in visitor arrivals later this year.

“The company continues to advance the development of its food court offerings. Build-out and installation of fixtures for the Freshens and Bento Sushi concepts are underway, with both units expected to be fully operational ahead of the Winter Tourist Season commencing December 2026,” ECL said in its third quarter report ending February 2026.

The food and beverage concessions company reported a drop from 652,656 passengers to 393,579 accessing the post-security departure lounge at Sangster International Airport during its third quarter, a 40 per cent reduction linked to hurricane-related disruptions across the tourism sector. That decline translated directly into a sharp contraction in earnings. Revenue fell from US$7.43 million to US$3.82 million, while operating profit dropped 65 per cent from US$2.38 million to US$822,992.

This means the company’s performance is tightly tied to passenger volumes, making earnings highly sensitive to disruptions in tourism activity.

Although administrative expenses fell 45 per cent to US$1.16 million, the company’s operating profit still dropped sharply, reflecting the scale of the decline in passenger traffic.

An improvement in finance income of US$447,251 resulted in the company reporting a net profit of US$647,787, a 63 per cent decline compared to the US$1.77 million earned in Q3 2025.

“Several hotels and accommodation providers sustained damage, resulting in a material reduction in available room stock. Recovery is underway, with a number of properties expected to return to operation in the latter half of calendar 2026, and a more substantial recovery anticipated in the final quarter of the year,” the company said.

The third-quarter contraction reflects a broader slowdown in performance since October 2025. For the nine-month period, ECL’s revenue declined 28 per cent from US$18.89 million to US$13.58 million. Even with lower administrative expenses, operating profit fell 41 per cent to US$2.99 million, while net profit was cut in half from US$3.22 million to US$1.62 million.

There are early signs of recovery in passenger traffic. The Montego Bay airport welcomed more than 350,000 passengers in March, the first month since the hurricane that arrivals exceeded 300,000.

“As accommodation inventory continues to be restored and tourism activity normalises, passenger volumes are expected to recover steadily. The company remains well positioned to benefit from this recovery through its established presence within the airport and ongoing investments in its food and beverage offerings,” ECL directors Ian Dear and Professor Andrew Spencer said.

ECL’s asset base grew three per cent over the nine-month period to US$60.43 million, with its related party balance of US$21.73 million to Margaritaville Limited being its largest current asset. Total liabilities declined marginally to US$48.60 million, with total long-term loans at US$15 million. Equity increased 16 per cent to US$11.83 million.

ECL’s stock price closed Tuesday at $2.35, leaving it down two per cent year to date with a market capitalisation of $3.85 billion. Mayberry Jamaican Equities Limited increased its stake during the quarter, purchasing an additional 3,147,668 ordinary shares to become the fourth-largest shareholder with 2.88 per cent of the company. Margaritaville St Lucia Inc remains the largest shareholder with 62.32 per cent of issued shares.