Knutsford Express has reported a 23?cline in pre-tax profits, falling to $290 million for the financial year ended May 31.
Managing Director Oliver Townsend attributed the dip to a sharp $219 million increase in operating expenses compared to the previous year.
The company said the higher expenses were driven primarily by an $85 million rise in staff costs and a $193 million fuel bill.
Additionally, Knutsford Express is now subject to the full 25% corporate tax rate following its graduation from the Junior Stock Exchange, a move that removed its previous 50% tax concession.
The intercity bus operator is also facing new competition from the Jamaica Urban Transit Company (JUTC), which recently began offering low-cost fares on select rural routes.
Despite the pricing of pressure, Townsend emphasised that Knutsford Express will not compete on price, but will instead focus on maintaining its premium service quality.
The company is banking on its extensive network of 16-passenger destinations, access to all three international airports and its strong cash reserves of $317 million to sustain its market position.
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