Is Air Jamaica to blame for Caribbean Airlines US$255m loss?

The majority of Caribbean Airlines financial woes can be blamed on Air Jamaica, according to Trinidad-based Guardian Media. In an investigative report, Guardian Media said the airline had  TT$1.7 billion (US$255 million) in losses across 13 years as it bankrolled the Air Jamaica operation - while Kingston has contributed noting despite holding an 11.8% equity stake — a financial imbalance that has already claimed South Florida routes and now threatens higher fares, deeper cuts, and Jamaica's seat at the boardroom table.

Caribbean Airlines (CAL) has accumulated losses of more than TT$1.7 billion (US$255 million) managing Air Jamaica's operations since acquiring the Jamaican carrier in 2011 — and none of that burden has been shared by the Government of Jamaica, according to a Guardian Media investigation.

Unaudited accounts covering 2012 to 2025 place the cumulative figure at US$254,709,575. 

While Air Jamaica's routes have generally turned a profit — the exceptions being 2020 during the COVID-19 pandemic and 2025 — personnel and administration costs have climbed steadily since 2020, eroding those gains.

Under the shareholders' agreement signed on May 26, 2011, Jamaica was granted a 16% equity stake in CAL. That share has since been diluted to 11.8%, and CAL sources warn that further dilution below 10% would strip Jamaica of its right to a seat on the airline's board. Two Jamaican directors currently sit on that board.

CAL, both during the pandemic and more recently through Trinidad and Tobago's Ministry of Finance, formally requested financial support from Kingston — but none has been forthcoming. Jamaica's Minister of Finance, Fayval Williams, did not respond to requests for comment.

The financial strain has had real consequences for travellers. In November 2025, CAL discontinued flights between Fort Lauderdale and both Montego Bay and Kingston, citing poor performance. The airline is also grappling with rising fuel costs, with analysts warning that passengers could face higher ticket prices or fuel surcharges if the funding gap is not addressed.

• CAL has lost more than TT$1.7 billion (US$254,709,575) managing Air Jamaica operations from 2012 to 2025 • The Government of Jamaica has made zero financial contributions to CAL since the 2011 shareholders' agreement • Jamaica's equity stake has been diluted from 16% to 11.8%; falling below 10% would cost Jamaica its board seat • Air Jamaica routes were profitable every year except 2020 and 2025, but rising personnel and admin costs offset gains • CAL cancelled Fort Lauderdale–Montego Bay and Fort Lauderdale–Kingston routes in November 2025 due to poor performance • Trinidad and Tobago taxpayers are effectively bearing the full financial burden of the arrangement

The Impact

The numbers tell a brutal story. Over 13 years, Caribbean Airlines has absorbed more than TT$1.7 billion (US$255 million) in losses that may be tied to the Air Jamaica operation, according to the report — losses borne almost entirely by Trinidad and Tobago taxpayers, while Jamaica's government has not contributed despite holding an 11.8% equity stake in the airline.

Travellers across the region are already feeling the squeeze. CAL axed its Fort Lauderdale–Montego Bay and Fort Lauderdale–Kingston routes in November 2025 due to poor performance, and further route cuts, higher ticket prices, and fuel surcharges remain firmly on the table. 

Jamaica's equity stake, meanwhile, continues to erode — and should it dip below 10%, Kingston would lose its seat at the boardroom table entirely, further weakening its already tenuous influence over an airline carrying its national legacy.

Predictions: • Further route cancellations affecting Jamaica-linked destinations if losses continue into 2026 • Jamaica's equity stake dropping below 10%, triggering loss of board representation • Introduction of a passenger fuel surcharge on CAL routes to offset rising operational costs

The Pulse

When Caribbean Airlines absorbed a financially broken Air Jamaica in 2011, the deal was sold as regional solidarity in action — a stronger Caribbean aviation sector, shared responsibility, shared reward. Fourteen years on, the solidarity has run decidedly one way.

Trinidad and Tobago's taxpayers have quietly absorbed over TT$1.7 billion (US$255 million) in cumulative losses managing the Air Jamaica base from 2012 to 2025. Jamaica, meanwhile, has contributed zero — not during the pandemic, not after it, not ever — despite holding an equity stake that has already slipped from 16 per cent to 11.8 per cent.

But the Air Jamaica routes themselves have largely pulled their weight, turning profits in most years outside of 2020 and 2025. The bleeding has come from relentlessly climbing personnel and administration costs — a structural problem.

With low-cost carriers squeezing CAL from every angle, fuel costs rising, Fort Lauderdale routes already axed, and Jamaica's board representation hanging by a thread at the 10% threshold, the region is confronting an uncomfortable truth: a partnership built without enforceable financial commitments was never really a partnership at all.

Trinidad & Tobago Taxpayers: For over a decade, T&T taxpayers have bankrolled a regional aviation arrangement that was supposed to be a shared responsibility. With Jamaica contributing zero dollars while holding an 11.8 per cent equity stake, the burden of US$255 million in losses has fallen squarely on Port of Spain's shoulders. The cancellation of Fort Lauderdale routes in November 2025 is the latest consequence — and analysts warn that fuel surcharges and higher ticket prices could be next. Trinidadians are rightfully asking: how long is enough?

Jamaican Travellers & Diaspora: The Jamaican diaspora — particularly in South Florida — now faces fewer direct options after CAL axed its Fort Lauderdale–Kingston and Fort Lauderdale–Montego Bay routes. Former Civil Aviation Authority director Ramesh Lutchmedial argued bluntly that the Jamaican diaspora 'never supported CAL,' opting instead for competing carriers. If Kingston won't invest in the airline and its own nationals won't fly it, Jamaica risks losing both its board representation and its aviation lifeline — a costly double blow for the island's connectivity. In contrast, many Jamaicans feel that CAL never supported Jamaicans.

Regional Aviation Analysts: The CAL–Air Jamaica arrangement exposes a persistent weakness in Caribbean regional cooperation: partnerships built on goodwill rather than enforceable financial commitments. With Jamaica's equity stake eroding toward the critical ten per cent threshold — below which it loses its board seat entirely — the structural imbalance is becoming impossible to ignore. Without a renegotiated agreement that fairly distributes costs, the model risks collapse, setting a chilling precedent for future regional integration efforts.

C360 View (Editorial)

Thirteen years. TT$1.7 billion. Zero dollars from Jamaica.

That is the blunt arithmetic of a partnership that was always more political than practical. When Trinidad and Tobago absorbed Air Jamaica in 2011, it inherited a troubled airline, a diaspora loyal to cheaper competitors, and a shareholders' agreement that quietly placed the financial burden squarely on Port of Spain.

But at the time of the transfer, many of the pilots and crew who worked for Air Jamaica had to find other employment - with many shifting to top line airlines in the Middle East, including Qatar Airways, Emirates and Etihad - a loss to the Jamaican economy and society. Later, during the pandemic, many of those pilots had to leave the Middle East to find employment in the United States and elsewhere.

The loss of Air Jamaica was hard for many Jamaicans who had pride in their national airline. The idea that Jamaica was a part of Caribbean Airlines - if only a minority stakeholder - was never really accepted or believed. Caribbean Airlines was simply thought of as a rebranded BWIA, which had subsumed Air Jamaica.  It is possible that many Trinidadians thought the same thing.

As a result, many Jamaicans turned instead to budget American airlines for their travel, or even legacy carriers, particularly to Fort Lauderdale and elsewhere in the United States - at often better rates.

During the period Jamaica has watched its equity stake in the airline shrink from 16% to 11.8% — and still holds two board seats. That is an unusual arrangement, and Trinidad and Tobago taxpayers deserve better than silence from Kingston.

CAL is already cutting routes - particularly from and to Jamaica. Fuel surcharges loom. If Jamaica's government cannot or will not honour the spirit of this partnership, the region must ask honestly: is this arrangement still worth keeping - and was it ever?

The move to blame Air Jamaica for Caribbean Airline's woes is not likely to fly in Jamaica, and the government would likely get much pushback from voters if they tried to place some of that burden on Jamaican taxpayers.