Airports Authority to spend $9.5 billion upgrading airports as Hurricane Melissa fallout lingers | Business

anchorashland@gmail.com
3 Min Read


The Airports Authority of Jamaica (AAJ) plans to spend more on capital projects in the fiscal year ending 2027 than at any point since the pandemic as it works to modernise the country’s aviation infrastructure against the backdrop of a sector still recovering from Hurricane Melissa’s fallout.

“Capital investment by AAJ for 2026-27 is budgeted at $9.5 billion,” stated the Jamaica Public Bodies report published this month by the Ministry of Finance.

The centrepiece of the programme is the continued rehabilitation of the aircraft apron at Norman Manley International Airport (NMIA) in Kingston, budgeted at $5.0 billion. At the other end of the island, $2.1 billion has been earmarked for capital works at Ian Fleming International Airport in St Mary and Jamaica’s domestic aerodromes –Tinson Pen, Ken Jones and Negril. Shoreline protection works along the Palisadoes, the narrow spit of land on which NMIA sits, are also expected to be finalised at a cost of $159 million, a project aimed at strengthening resilience against storm surge risk highlighted by Hurricane Melissa.

AAJ retains ownership of both Sangster International Airport (SIA) and NMIA though day-to-day operations are managed by concessionaires MBJ Airports Limited and PAC Kingston Airport Limited (PACKAL), both majority owned by Mexico based Pacific Airport Group. AAJ manages Ian Fleming directly along with the domestic aerodrome network.

The investment comes as the aviation sector continues to absorb Melissa’s impact. Data from the Jamaica Civil Aviation Authority show passenger traffic through Ian Fleming plunged 77 per cent in the October-December quarter, reflecting wider disruption in surrounding parishes. Sangster International, which bore the brunt of the storm, recorded a 73.4 per cent decline in passenger traffic in November. The Ministry of Finance projects total passenger traffic at SIA of 4.1 million for 2026, down from 4.3 million in 2025.

“Passenger traffic at SIA was impacted negatively by the passage of Hurricane Melissa in late 2025, however, projections indicate a full recovery by July 2026,” AAJ said in the Jamaica Public Bodies document.

NMIA fared considerably better, with minimal hurricane impact. Traffic there is projected to grow from 1.7 million in 2025 to 1.8 million in 2026.

Despite the capital push, AAJ projects a deficit of $186.7 million for the 2026-27 fiscal year, compared with a $600 million surplus in 2025-26.

“AAJ remains committed to developing and modernising Jamaica’s airport system, strengthening infrastructure, improving efficiency, and supporting growth in the aviation sector,” the agency stated.

AAJ capital spend based on estimates totalled $3.8 billion in fiscal 2026, $650 million in 2025, $586 million in 2024, $645 million in 2023, $450 million in 2022, $1.6 billion in 2021, and $1.0 billion in 2020.

business@gleanerjm.com



Source link

Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *