Narayan AmmachchiUS airlines collectively increased their seating capacity by nearly 1 million seats to various destinations in the Caribbean during the fiscal year ending March 31st, 2024.
This surge in capacity reflects a strategic response to the rising demand from American travelers seeking leisure experiences in the region. Leading the charge in this endeavor are Delta and United Airlines.
Delta alone added 246,000 seats, a 32% increase in its previous capacity. United Airlines expanded its seating capacity by 170,000 seats, a roughly 31% increase.
Frontier Airlines increased capacity by 100,000 seats, marking a notable 29% rise compared to the corresponding period in 2023, as per Cirium data.
JetBlue, which already has an established presence in the Caribbean, expanded its seating capacity by approximately 11%.
Despite these expansions, the heightened competition and consequent saturation of capacity in Caribbean destinations have resulted in financial setbacks for several carriers.
According to Forbes, JetBlue reported a US$145 million loss in the first quarter. CEO Joanna Geraghty attributed the loss to challenges faced in Latin American routes due to surplus capacity.
Latin America constitutes 35% of JetBlue’s total capacity. The airline services 25 airports in the region from its hubs in New York, Boston and Fort Lauderdale.
Apart from the Caribbean, American carriers have also increased their flights to popular Mexican tourist destinations. Capacity to Cancun and Tulum, in particular, witnessed an uptick of approximately 20% between the first quarters of 2023 and 2024.
The inauguration of Tulum International Airport further catalyzed this growth, prompting all ten US carriers flying to Cancun to bolster their capacity. In the first quarter, Cancun boasted approximately 2 million seats, whereas Tulum, still in its nascent stages, offered around 4,000 seats.
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