The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

BAHA Mar yesterday revealed it is on target to beat “historical trends” through July and August occupancies “in the high 80 to low 90 percent” range even as Bahamian aviation operators battle to emerge “unscathed” from high and volatile fuel prices.

Robert Sands, Baha Mar's senior vice-president of government and external affairs, told Tribune Business in messaged replies to this newspaper’s inquires that the Cable Beach mega resort is on pace to buck Bahamian tourism’s traditionally softer summer after ending June with occupancies also in the low-90 percent space.

Acknowledging that the increased number of Canadian visitors to The Bahamas, aided by increased airlift connectivity between that nation and Nassau, as well as “robust” group business has helped maintain Baha Mar’s relatively high occupancy levels, he added that visitor demand has remained “resilient” despite the travel uncertainties and inflationary pressures sparked by the Middle East conflict which are now “beginning to ease”.

“We’re encouraged by how the summer is shaping up,” Mr Sands told this newspaper. “June finished with occupancy in the low-90 percent range, and July and August are currently tracking in the high-80 percent to low-90 percent range, with average daily rates remaining healthy and generally in line with our expectations.

“While summer has traditionally been a softer period for the destination, Baha Mar continues to outperform historical trends through a balanced mix of leisure, group and luxury travel.”

He added: “Canadian airlift has been an important contributor to that performance. We’ve seen continued strength from the Canadian market, supported by expanded air service and sustained demand. At the same time, our group and meetings business has remained robust, helping to complement leisure travel and provide consistent occupancy throughout the summer months.

“While geopolitical tensions, higher fuel prices and broader economic uncertainty have presented challenges across the global travel industry, we are seeing continued resilience in consumer demand. Travellers continue to prioritise meaningful travel experiences, and The Bahamas remains a highly desirable destination. Although some external uncertainties remain, there are encouraging signs that several of the headwinds affecting tourism over the past year are beginning to ease.

“Overall, we’re optimistic about the balance of the summer and the remainder of the year. Strong air connectivity, a diversified customer base and continued investment in our product and programming position Baha Mar well for continued success.” However, similar levels of optimism have yet to fully take hold in the Bahamian aviation industry, which plays a key role in connecting visitors and local travellers with Family Islands and local communities.

Anthony Hamilton, president of the Bahamas Association of Air Transport Operators, told Tribune Business that the industry remains in “a holding pattern” with no sign yet of any fuel cost relief that would enable it to reverse up to 10 percent ticket price hikes imposed on consumers earlier this year. He added that the one positive for a sector already operating on “slim margins” is that demand is still steadfast given the need for travel between Nassau and the Family Islands.

The International Air Transport Association’s (IATA) weekly jet fuel price monitor shows that, for the seven-day period to June 26, the Latin American and Caribbean average stood at $123.83 per barrel. While this represented a 23.2 percent decline on May 2026’s average, it was still some 33.5 percent higher than the prior year, and Mr Hamilton said Bahamian aviation operators have yet to see any substantial easing of fuel costs locally despite the recent falls.

While some local operators yesterday suggested that jet and aviation gas prices have stabilised, and even started to fall, Mr Hamilton said: “It’s still holding. We are still basically holding because it’s a volatile situation and we’re just holding on to this right now. The [ticket price] adjustments already made are holding until anything material develops and then we’d respond but, as it stands right now, it’s a holding pattern.

“There is nothing in sight just yet. We are monitoring it. Everyone is just trying to make their way right now until something emerges, and then we will have to respond to it, but right now it’s a holding pattern. The margins are already slim, and we pretty much have to eat it as it goes. There’s a great deal of uncertainty until everything levels out.

“It’s already on pins with the nature of the margins. If anything adverse occurs, we are sensitive to it. We try to optimise our best shot at it in terms of maintaining consistency and keeping the business afloat. We’re hoping for the best right now, trying to hold on and come through unscathed.” Western Air told this newspaper earlier this year that it was bracing for a 40 percent increase in jet fuel prices after the Middle East conflict broke out, while Bahamasair said 50 percent.

While The Bahamas’ proximity to its key source markets, principally the US, and location from the Middle East conflict zone have helped sustain tourism demand, but aviation cost pressures persist according to Mr Hamilton. Conceding that “business is a risk”, he added that the industry is awaiting “an upward tick to the benefit of all of us” with operators focused on “prudently” managing their businesses to avoid “adding adversity”.

“So we are trying to maximise operating with good judgment,” Mr Hamilton told Tribune Business. “This environment right now is putting all our business acumen to the rest. We are trying to get the best performance, recognising that in this industry safety is of the utmost importance, so we are operating to maintain viable operations. Prudent business practices are at an optimum. That’s the business we are in right now. We are trying to get the greatest efficiencies with the resources we have.”

Now, with the May 12 general election in the history books, Mr Hamilton said Bahamian aviation operators are hoping investment projects get “unlocked and stimulated” in the very Family Island communities that they serve to drive an increase in traveller traffic and passenger load factors. However, he added that fuel costs in those destinations are even higher than those in New Providence.

“You may have to pick up fuel in the Family Islands, and the bottom line takes a further hit,” Mr Hamilton said. “We are trying to make the best business judgments to avoid these encumbrances that can be very costly. The cost can vary from island to island, but the further south you go the more expensive it becomes.

“You import to New Providence and ship on to the Family Islands. The logistics, all these things tag on, so the end user bears the cost of that. The further south you go, the more costly the fuel gets on you.”