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IOL News
3 hours ago
- Business
- IOL News
BRICS+ Series: Cuban Tourism Set Back as United Airlines Ends Direct Flights, Brazil steps in
Brazilian and Cuban flag Image: TV BRICS Cuba's tourism sector, already contending with external pressures and regulatory complexities, faces a new challenge as United Airlines prepares to suspend its only direct flight between Houston and Havana. This development threatens to weaken a key transport link for American travellers outside Florida and could further strain Cuba's tourism-dependent economy. As Cuba navigates this loss, it is simultaneously pursuing alternative partnerships, notably with Brazil through BRICS, to safeguard its visitor numbers and sustain the sector's economic contribution. Cuban Tourism Challenge Cuba's tourism sector is facing a significant challenge following United Airlines' decision to discontinue its nonstop service between Houston's George Bush Intercontinental Airport and Havana's José Martí International Airport. The route, scheduled to cease on 2 September 2025, was the only direct flight to Cuba operated by a U.S. airline based outside Florida. This move comes amid fluctuating demand and ongoing changes in U.S. travel regulations related to Cuba. The cancellation is expected to have a notable impact on travel between the U.S. and Cuba, particularly for tourists from Texas and neighbouring states who have relied on the Houston-Havana route as a key link to the island. Cuba's economy, especially in Havana and surrounding areas, has long depended on American tourism. Visitors from the U.S. contribute substantially to sectors such as hospitality, local transport, and cultural services. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Destinations Impacted Cuban destinations like Old Havana, Varadero, and Trinidad—known for their historical, cultural, and natural attractions—may suffer economically as a result of decreased tourist access. With fewer direct flight options, American visitors may find it more difficult to reach these popular sites, potentially leading to a decline in visitor numbers during off-peak periods. Tourism in Cuba typically peaks during the U.S. winter, when favourable weather encourages travel to the Caribbean. However, in the low season, decreased demand makes certain routes harder for airlines to sustain. United's suspension reflects how seasonal variations and unpredictable market conditions can undermine route viability. Although Cuba has made efforts to attract a broader international audience, American travellers remain among its most important markets. Reduced accessibility from the U.S. could hurt Cuban-owned businesses that rely on foreign spending. At the same time, uncertainty surrounding U.S. policy on Cuba has made it difficult for airlines to plan long-term routes, as travel permissions and restrictions continue to shift under different administrations. With fewer direct links, some U.S. travellers may opt for alternative Caribbean destinations that are easier to access and face fewer regulatory hurdles. This could see Cuba losing ground to regional competitors in terms of tourism numbers. The suspension of the Houston-Havana service reflects wider trends in international travel, where airline decisions are increasingly influenced by political shifts, profitability concerns, and seasonal changes in demand. For Cuba, maintaining its tourism industry may now require expanding ties beyond the U.S. market and forging new partnerships to support its economic recovery. Brazil's Cuban Agreement Brazil and Cuba have taken steps to reinforce their cooperation in the tourism sector during a meeting in Rio de Janeiro, where their respective tourism ministers discussed new strategies to boost mutual visitor numbers, according to an official statement from the Brazilian government. A key item on the agenda was the introduction of a weekly direct flight linking São Paulo and Havana, intended to ease travel between the two nations, which currently often requires layovers in other Latin American countries. The talks also considered reopening a Brazilian branch of Cuba's national tourism agency. This office would not only help promote travel packages but also provide support on trade matters, particularly those involving the supply of products and services vital to the Cuban tourism industry. Brazil's Tourism Minister, Celso Sabino, emphasised the strong historical ties between the two countries and reaffirmed their joint commitment to restoring direct air links. The meeting, attended by representatives from Embratur and the UN Tourism Office for the Americas and the Caribbean, reflected a shared ambition to enhance regional travel connectivity and deepen cooperation in the tourism domain. The termination of the Houston-Havana route highlights the fragility of Cuba's reliance on U.S. tourism amid shifting policy and market dynamics. However, renewed collaboration with countries like Brazil and BRICS offers a potential path forward. By strengthening regional partnerships and diversifying its source markets, Cuba may be able to mitigate the impact of U.S. travel constraints and build greater resilience within its tourism industry. Written by: *Dr Iqbal Survé Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN *Cole Jackson Lead Associate at BRICS+ Consulting Group Chinese & South American Specialist **The Views expressed do not necessarily reflect the views of Independent Media or IOL. ** MORE ARTICLES ON OUR WEBSITE ** Follow @brics_daily on X/Twitter & @brics_daily on Instagram for daily BRICS+ updates
Reuters
19 hours ago
- Business
- Reuters
Southwest misses profit expectations as weak domestic demand erodes fares
July 23 (Reuters) - Southwest Airlines (LUV.N), opens new tab missed Wall Street estimates for second-quarter profit on Wednesday, pressured by weak domestic travel demand that has led to more empty seats and softer fares. Shares of the carrier were down 2% in aftermarket trading. The budget carrier reported an adjusted profit per share of 43 cents, compared with analysts' average expectations of 51 cents, according to data compiled by LSEG. In April, several major U.S. carriers scrapped their financial forecasts, citing uncertainty linked to President Donald Trump's broad tariff measures and government spending cuts, which pressured consumers to scale back travel plans. Since then, airline executives and analysts have signaled that demand trends and the broader travel environment are showing signs of steadiness. Even so, the domestic market remains under pressure, with cost-conscious travelers continuing to exercise caution as household budgets tighten. Summer, typically the peak money-making season for airlines, is falling short this year as sluggish demand for standard economy seats forces carriers to cut fares, undermining their pricing power. Delta Air Lines (DAL.N), opens new tab and United Airlines (UAL.O), opens new tab have seen strong revenue gains from premium cabins, buoyed by affluent travelers willing to pay for upgrades. By contrast, low-cost carriers such as Southwest, which relies heavily on standard economy seats, are under pressure to maintain profitability as price-sensitive travelers remain cautious with discretionary spending. Southwest reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier.
Yahoo
19 hours ago
- Business
- Yahoo
Southwest misses profit expectations as weak domestic demand erodes fares
(Reuters) -Southwest Airlines missed Wall Street estimates for second-quarter profit on Wednesday, pressured by weak domestic travel demand that has led to more empty seats and softer fares. Shares of the carrier were down 2% in aftermarket trading. The budget carrier reported an adjusted profit per share of 43 cents, compared with analysts' average expectations of 51 cents, according to data compiled by LSEG. In April, several major U.S. carriers scrapped their financial forecasts, citing uncertainty linked to President Donald Trump's broad tariff measures and government spending cuts, which pressured consumers to scale back travel plans. Since then, airline executives and analysts have signaled that demand trends and the broader travel environment are showing signs of steadiness. Even so, the domestic market remains under pressure, with cost-conscious travelers continuing to exercise caution as household budgets tighten. Summer, typically the peak money-making season for airlines, is falling short this year as sluggish demand for standard economy seats forces carriers to cut fares, undermining their pricing power. Delta Air Lines and United Airlines have seen strong revenue gains from premium cabins, buoyed by affluent travelers willing to pay for upgrades. By contrast, low-cost carriers such as Southwest, which relies heavily on standard economy seats, are under pressure to maintain profitability as price-sensitive travelers remain cautious with discretionary spending. Southwest reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier.
Yahoo
a day ago
- Business
- Yahoo
Hilton lifts 2025 profit forecast on US demand recovery
(Reuters) -Hotel operator Hilton Worldwide lifted its forecast for 2025 profit, as travel demand in the U.S. recovers from a downturn in March and April. Earlier this year, domestic travel took a hit after U.S. President Donald Trump's aggressive tariff announcements triggered fears of an economic recession that led consumers to rein in discretionary expenses. Some travel companies, such as Delta Air Lines and United Airlines have recently flagged that travel demand in the U.S. has steadied, although the recovery has been slower than anticipated. McLean, Virginia-based Hilton now expects full-year adjusted profit to be in the range of $7.83 and $8 per share, compared with its earlier forecast of $7.76 to $7.94. The Waldorf Astoria-parent posted an adjusted profit of $2.20 per share in the second quarter, compared with $1.91 a year ago. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
United Airlines Holdings Inc (UAL): Get With The Program, Says Jim Cramer
We recently published . United Airlines Holdings Inc (NASDAQ:UAL) is one of the stocks Jim Cramer recently discussed. United Airlines Holdings Inc (NASDAQ:UAL) is one of the largest airlines in America. Its shares have lost 4.4% year-to-date and are down by 14% since their February peak. Travel stocks were booming until February as bullishness about consumer spending and pent-up demand fueled investor optimism. However, since then, worries about spending and inflation have harmed the sector. Cramer previously described the strength in travel stocks as a bull market and wondered if recent indicators are hinting at its resurgence: 'The backlogs we're talking about, it's just that such a bull market in travel and flight that makes me say like you knowraising numbers Marriott, raising, United Airlines of course had to go wreck things. Scott, Scott, get with the program. A bird's eye view of a large commercial jetliner taking off from an airport runway. Previously, the CNBC TV host discussed an unbelievable price target for United Airlines Holdings Inc (NASDAQ:UAL): '[On airlines price target upgrades] Did you see that price target of United? While we acknowledge the potential of UAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
