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For Cuba, further US airline capacity cuts are likely, as USA trade relations cool

Analysis

On the grounds that the thawing of relations between USA and Cuba introduced by the previous US government was enriching the Cuban military and the intelligence services that contribute so much to oppression on the island, US President Donald Trump has reversed the legislation that had begun to open the Caribbean island to arrivals from the USA.

The decision of the Barack Obama administration to thaw relations between USA and Cuba was seen as a landmark ruling opening the island up to 110 daily commercial flights from the US. But despite the strong interest from US airlines for the traffic rights, particularly into Havana, the anticipated demand has not materialised and five airlines have already suspended or cut routes into Cuba citing high costs and weak bookings.

Despite this, traffic levels between the two countries over the first six months of 2017 have grown to record levels, putting a strain on the country's ageing tourist infrastructure.

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