4 months ago
22
Knutsford Express Services Limited, a luxury bus service popular among tourists and Jamaican commuters, faced rising costs as air travel slowed.
For the February third quarter, its profit was sliced in half, dropping to $49 million, even as revenue edged higher.
“Jamaica’s subdued passenger arrival numbers linger generally,” the company reported to shareholders.
Knutsford Express, led by founder and CEO Oliver Townsend, provides an alternative to Jamaica’s underfunded inter-parish bus system.
From January to March, air travel through Jamaica’s two major airports declined by five per cent to 1.76 million passengers, a count that includes both arrivals and departures. Montego Bay saw an eight per cent drop to 1.33 million passengers, while Kingston bucked the trend, rising nine per cent to 428,100 passengers, according to the Pacific Airport Group which operates both major airports.
Nevertheless, Knutsford’s revenue climbed by five per cent to $593 million during the quarter, but the company faced mounting operational costs that eroded customer gains.
The company’s investments in digitisation and fleet modernisation aim to position it for growth, but the spend puts pressure on its margins in the short-term amid economic headwinds.
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The bus company’s administrative and general expenses jumped 20 per cent to $520 million for the quarter, with higher fleet maintenance costs, fuel prices, and investments weighing on its performance.
“We will deepen our efforts to further digitise our processes to bring improved efficiencies to our operations and enhance both customer and employee satisfaction,” Townsend said.
Over nine months ending February, Knutsford Express’ revenue showed resilience, growing by more than seven per cent to $1.64 billion, from $1.53 billion in 2024. However, net profit for the same period fell by one-third to $170 million, from $269 million. The company’s operating profit also declined by 24.5 per cent, reflecting rising costs at the core of its operations.
Knutsford Express continued to invest in its fleet and infrastructure, with total assets expanding by 10.7 per cent to $2.13 billion, up from $1.93 billion in February 2024. Meanwhile, cash reserves dwindled to $70 million, from $110 million at the start of the fiscal year, as cash flows were impacted by dividend payments and capital expenditures.
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