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VIRGIN ISLANDS TAKE FLIGHT:
Major Airline Expansions Will Transform Caribbean Access
Kristi Query
July 24, 2025
Southwest Airlines launches first new destination since 202 with St. Thomas service, while American Airlines enhances BVI connectivity with expanded Miami schedule-positioning both territories for unprecedented tourism growth.
Southwest Airlines to St Thomas (U.S. Virgin Islands)
Southwest Airlines announced it will launch service to Cyril E. King International Airport in St. Thomas in early 2026, marking the airline’s first new destination since 2021 . This is particularly significant because:
ECONOMIC IMPACT
- Expected routes include daily flights from Orlando with potential weekend-only flights from Baltimore/Washington and Nashville
- St. Thomas will become Southwest’s ninth island destination in the Atlantic region
- No passport required for U.S. travelers, making it highly accessible
- Southwest’s signature perks (two free bags, no change fees) will make travel more affordable
TOURISM GROWTH
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The timing is excellent given the USVI’s current momentum. The territory achieved record arrivals in 2024, with air arrivals at Cyril E. King Airport reaching 932,265 passengers—a 16.5% increase from 2023 . Hotel occupancy rates have surged 4.3% in 2025, with hotel tax collections exceeding 2024 levels by 6.7% .
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American Airlines Enhanced Service to Beef Island (British Virgin Islands)
American Airlines is adding late evening arrivals from Miami International Airport into Terrance B. Lettsome International Airport, followed by early morning departures at 8:00 a.m. from EIS to MIA . The BVI Minister announced “Starting this winter, American Airlines is offering daily flights out of the Virgin Islands at 8am, returning at 10pm” .
STRATEGIC ADVANTAGES
Connectivity improvement:
These schedule adjustments cater to the needs of the local population, business community, and visitors alike, offering greater flexibility and much-needed options for early arrivals into Miami and for connecting late evening flights
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Business travel facilitation:
Early morning departures allow same-day connections to major U.S. cities
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Tourism access:
Late evening arrivals accommodate travelers coming from various U.S. connections
BROADER REGIONAL IMPLICATIONS
Competitive Positioning:
These additions strengthen both territories’ competitive positions in the Caribbean. The USVI now ranks third in the Caribbean for both average daily rate and revenue per available room, each more than 30 percent above the regional average . According to Cvent, St. Thomas is now ranked as the fifth most preferred Caribbean destination for incentive travel, ahead of Puerto Rico and Jamaica .
Economic Diversification:
Both territories benefit from reduced seasonal dependency. The strategic discussions centered on unlocking new market opportunities, reinforcing existing routes, and developing strategies to mitigate seasonal fluctuations in travel demand .
Regional Cooperation:
These developments create opportunities for inter-island tourism, as travelers can now more easily visit both territories. The proximity and improved connectivity could boost regional cruise and day-trip markets.
THE BOTTOM LINE
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These airline expansions represent a tourism infrastructure leap for both Virgin Islands territories. For the USVI, Southwest’s entry democratizes access with affordable, convenient service from major mainland markets. For the BVI, American’s enhanced schedule transforms business travel efficiency and connection opportunities. Together, these changes position both territories to capture increased market share in the competitive Caribbean tourism landscape while building more resilient, year-round visitor economies.
WHAT DOES THIS MEAN FOR OUR YACHT CHARTER GUESTS?
FINALLY, SOME AIRLINE PRICE RELIEF
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Here's what happens when Southwest enter the market: everybody else panics and drops their prices, which we've already seen. Remember when they first started flying to Hawaii and suddenly United and American were offering $300 roundtrips? Same thing's about to happen to the Virgin Islands.
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When Southwest launches St. Thomas service in 2026, you can bet Delta, American, and JetBlue will be scrambling to match those famous Southwest fares. We're talking potential savings of $200-$400 per person compared to what you're paying now. That's real money that can go towards boat upgrades, longer charters, or splurging on dinners ashore.
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BETTER CONNECTION TIMES, MORE FREQUENT SALES PROMOTIONS, IMPROVED ON-TIME PERFORMANCE
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If you've been putting off booking a charter vacation because flights were eating up too much of your vacation budget, these changes are your green light. Your charter dreams just got more affordable!
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We'll see you in the Virgin Islands!!
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Jim and Kristi Query
NAVIGATING BVI REGULATIONS CHANGES
New BVI Legislation Will Change the Charter Industry in the Virgin Islands
Kristi Query
May 21, 2025
As you may or may not be aware, a large part of our focus over the past several years has been managing the ever-changing landscape of running charters into the BVI. While we have been extremely effective and navigating this issue, the government of the British Virgin Islands has drawn a line in the sand that will change chartering in the Virgin Islands beginning this upcoming season.
The Changing Charter Landscape
The British Virgin Islands government has recently implemented significant changes to its charter fee structure. These new regulations dramatically increase the annual fees for USVI-based charter vessels entering BVI waters from approximately $400 to $24,000 for unlimited charters - a nearly 6,000% increase. This substantial change will significantly impact the USVI charter industry and how vessels operate between the territories.
The secondary option would give each charter vessel a maximum of 7 charters per season, with a 3-night maximum within the BVI territory. These yachts will be subject to a $7,500 annual fee, which does not make this a reasonable option for the
yacht owners in our fleet or for our charter clients.
USVI vs BVI Charter Analysis
After careful analysis of every charter over the past two years, we have found that 30% of our charters are USVI only, while the remaining 70% travel to the BVI for more than three nights.
Charterers who choose to stay within the USVI cruising grounds typically, do so for one of four reasons:
1. Quieter, less crowded mooring fields
2. Ease of travel
3. They don't want the expense or hassle of clearing BVI Customs and Immigration
4. Some, or all, of their group, do not have passports
Given this data set, Virgin Islands Yacht Charters, in furthering its commitment to our yacht owners and charter guests, has taken the following actions:
We have established a base in the heart of Road Town, Tortola, in the beautiful Village Cay Marina and Hotel (www.villagecaybvi.com). Village Cay Marina, while already a comfortable base of operations, is in the process of a $100M expansion and beautification project that will allow us to grow and flourish in the absolute center of the BVI cruising grounds. Provisioning is within walking distance, an onsite restaurant, and all that Road Town has to offer is right out the door.
We are maintaining our base at Compass Point Marina on St Thomas, USVI. Vessels based at Compass Point will be US-only charter vessels. VIYC will maintain a smaller fleet, largely consisting of our slightly older yet wonderfully maintained charter vessels aimed at our value-driven customer base and for those looking to explore the beautiful islands of St Thomas, St John, Water Island, and St Croix. Not to mention the extended option of sailing to the Spanish Virgins Culebra, Culebrita, and Vieques.
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OTHER OPTIONS for YACHTS HOME BASED IN THE BVI
There are other options for yachts that are based in the BVI to be able to include charter time in both territories:
1. Charter 100% in BVI waters.
2. Include the USVI in your itinerary by clearing out of BVI.
3. Begin your charter in the BVI and return the vessel to our St Thomas base to fly out of the St Thomas airport. There is a relocation fee.
While change is never easy, our commitment at Virgin Islands Yacht Charters has always been to provide our valued yacht owners, broker partners, and charter clients with the easiest and best options for navigating the waters of the US and British Virgin Islands without missing a
thing.
We strongly believe that the two-tiered strategy laid out in this email will mitigate the negative effect of the new BVI regulations and give our guests options.
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Thank you for chartering with us and we'll see you in the Virgin Islands!!
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Jim and Kristi Query