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Recovery well underway in the current quarter with hotels reopening

Durrant Pate/Contributor

Montego Bay airport concessionaire, Express Catering, has been hit hard by the closure of hotels in Western Jamaica in the aftermath of Hurricane Melissa.

For the quarter ended February 2026, Express Catering incurred a decline in profit, revenue as well as a contraction in passenger spend. Net profit closed the quarter under review at US$647,787, resulting in earnings per share (EPS) of 0.040 US cents, down by more than 130% from US$1.77 million and EPS of 0.108 US cents last year.

Revenue was down by more than 100% to US$3.82 million, down from US$7.43 million in the prior year. Spend per passenger was down US$9.71, compared to US$11.38 in 2025.

A total of 393,579 passengers accessed the post-security departure lounge at Sangster International Airport during the quarter, compared to 652,656 passengers in 2025. This represents a decline of 258,878 passengers, or 39.7%, primarily attributable to the impact of Hurricane Melissa. 

The reduction in passenger throughput reflects the significant disruption to accommodation inventory across Montego Bay and surrounding resort areas following the hurricane. Several hotels and accommodation providers sustained damage, resulting in a material reduction in available room stock. 

Managing cost pressures

Cost containment initiatives were implemented during the period, including workforce adjustments in response to reduced business activity. Express Catering remains focused on aligning its cost structure with current demand levels.

Utilities, particularly electricity, have shown upward pressure during the fiscal year, with an approximate 6% increase in rates observed between June and December. The management continues to assess mitigation strategies to manage these cost pressures. 

As for capital projects and development, 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 in December 2026. 

Positive outlook for current quarter

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 is anticipated in the final quarter of the year. Passenger volumes, and by extension revenues, are expected to improve progressively in line with this recovery. 

The company is encouraged by early signs of recovery in passenger volumes. Monthly trends indicate a progressive improvement, with March showing stronger performance relative to February, and February outperforming January. 

As accommodation inventory continues to be restored and tourism activity normalizes, passenger volumes are expected to recover steadily. Express Catering remains well-positioned to benefit from this recovery through its established presence within the airport and ongoing investments in its food and beverage offerings.