SATA Ends Direct Flights to North America

Airline Announces End of Unprofitable Routes

SATA, the airline operating through its subsidiary Azores Airlines, has revealed plans to discontinue direct flights connecting Madeira with the United States and Canada. This decision comes just over two years after the Madeira–New York route was launched and less than a year after flights to Boston and Toronto were introduced.

The announcement was made in the Azores yesterday and confirmed today. According to a report, these routes have been losing between €12 and €15 million annually, prompting their inclusion in SATA’s Financial Sustainability Plan.

In 2023, Azores Airlines’ operation between Madeira and the Azores is extremely positive. The bet on direct flights between Madeira and North America outcomes from the success of the operation between New York and Funchal

Teresa Gonçalves, Executive President of Azores Airlines.

Financial Challenges Lead to Route Cuts

Rui Coutinho, president of the SATA Group, addressed the decision in a press conference. Coutinho, who took over in July 2024 with a mandate to stabilize the airline’s finances, said the losses became evident as summer operations unfolded. The airline will maintain flights connecting North America to the Azores via Ponta Delgada. However, direct services from Madeira and Porto to New York, Boston, and Toronto will be halted later this year.

A Setback for Regional Promotion Efforts

The launch of the Madeira–New York route in November 2022 was initially supported by the Madeira Regional Government through the Madeira Promotion Association. Joint marketing campaigns and promotional activities in the U.S. were aimed at strengthening Madeira’s presence in the North American market. The recent decision effectively nullifies these investments, casting uncertainty on future promotional efforts targeting the region.

Madeira’s Connection to North America in Question

As it stands, it is unclear if direct flights to any of the three North American cities will resume in the future. The decision underscores the challenges faced by regional carriers in balancing expansion with financial viability.

Source: Diário de Notícias da Madeira