KNUTSFORD EXPRESS PROFIT DIPS DUE TO THE STATE OF EMERGENCY!

Knutsford Express Services Limited under performed financially during its third quarter ending February, for which the luxury bus company places some blame on the crime-control measures in St James, where it now operates two depots.

Revenue grew in the quarter by 14 per cent to $231.7 million but the company, which operates various bus routes cross-country, had expected better outcomes.

“We believe the increase was somewhat tempered by the establishment of the state of emergency in St James,” said Knutsford Express CEO Oliver Townsend in a statement accompanying the financial results.

The bus company made a profit of $37 million, or seven cents per share, down from $54 million, or 11 cents per share, in the February 2017 quarter.

The state of emergency was implemented on January 18, after which the United Kingdom and Canada, two source countries for tourists to Jamaica, issued travel advisories.

The UK Foreign Office told British tourists to stay in hotels or limit travel. The Canadian government asked its citizens to exercise a higher degree of caution. The United States Department of State already had a travel advisory out for Jamaica.

Going forward, Knutsford expects increased inflows from the addition of a depot at the Sangster International Airport in Montego Bay, which opened for business last November.

“The feedback from our customers flying into Montego Bay has been tremendous and we expect continued passenger growth as a result of this initiative,” the company said.

Knutsford ended the calendar year with 27 buses, and plans to add to the fleet in 2018.

Jamaica is struggling to contain rising murders that amounted to 1,616 in 2017. In St James, where the capital city Montego Bay is also Jamaica’s tourist capital, murders were up 24 per cent to 335 last year.

Under the measure, nearly 1,800 persons have been detained, leading to outcry from different groups about the impact it is having on the lives of regular people, but the Government is defending it, saying murders are down 60 per cent.

business@gleanerjm.com