John Pepper, BermudAir's chief commercial officer, at Routes World 2026 in Frankfurt.
Three years after launching from Bermuda, BermudAir is extending its premium leisure model across the Caribbean, seeking underserved island markets where travelers may pay higher fares for nonstop service.
The privately owned carrier became Bermuda’s first locally based airline when it began flying in 2023. It is now pursuing an unusual growth strategy: building separate networks around individual destinations, shifting capacity with seasonal demand and avoiding direct competition with larger airlines where possible.
BermudAir Chief Commercial Officer John Pepper outlined the strategy during an airline briefing at Routes World 2026 in Frankfurt. The former Allegiant Air executive, who joined BermudAir six months ago, said the airline is borrowing elements of the U.S. leisure carrier’s playbook—including flexible capacity and vacation packages—but focusing on a more premium customer.
“If this sounds a lot like some other flexible capacity airlines, that’s absolutely intentional,” Pepper said. “The key differentiator for us, though, is going to be that we’re really targeting a little bit more of a premium customer.”
The strategy began expanding beyond Bermuda in December 2025, when BermudAir launched seasonal service to Anguilla. The carrier is extending the model to Turks and Caicos, with flights linking Providenciales to several North American gateways and service to South Caicos, while also expanding into Belize.
Rather than routing those passengers through Bermuda, BermudAir is creating distinct networks around destinations capable of supporting premium leisure traffic.
Pepper said about 70% of BermudAir’s routes have no nonstop competition. In Anguilla, he said the number of Boston passengers increased from roughly one per day in each direction to 20 after nonstop service began.
“We’re really looking for a destination where we can at least start with about three or four nonstop routes in the U.S. that don’t have that competition,” Pepper said.
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Unlike some regional air services in the U.S., BermudAir’s expansion does not depend heavily on government subsidies. Pepper said most Caribbean destinations provide marketing assistance rather than direct financial guarantees, although some routes, including South Caicos, benefit from government and private-sector partnerships. Such support can be particularly important when introducing U.S. travelers to less familiar island destinations.
BermudAir has identified opportunities across 22 island markets. They include smaller destinations in the Bahamas, such as Eleuthera, Exuma and Abaco, where international links remain heavily concentrated on Florida. The airline is also studying alternative resort gateways in Jamaica, Roatan in Honduras and islands across the Eastern and Southern Caribbean.
Pepper believes that broader opportunity could eventually support a fleet of 25 to 40 aircraft.
Seasonality is central to the model. Bermuda’s demand peaks during summer, while Anguilla, Belize and Turks and Caicos are stronger winter destinations. Jamaica offers another complementary demand pattern, potentially allowing BermudAir to keep aircraft productive as demand shifts between markets.
“We think that we can hit the winter and the summer season and really make those both peak,” Pepper said.
Bermuda itself may support three or four aircraft during summer but only one in winter. BermudAir would continue providing year-round connectivity while redeploying the remaining capacity to stronger seasonal markets.
The airline is also using its British air operator certificate and fifth-freedom rights to operate beyond British Overseas Territories, including in Belize and Guatemala. Pepper described the approach as “one of the most unique uses of these rights worldwide.”
BermudAir currently operates five Embraer aircraft and expects its fleet to grow to eight by year-end and 11 in 2027, when its first Airbus A220s are due to arrive. The carrier has 10 firm A220 orders and 10 options and is aiming to operate about 20 aircraft by 2030.
The A220 will provide 39 more seats than BermudAir’s E190s, as well as greater range and a three-class cabin.
BermudAir is also seeking to generate more revenue beyond ticket sales. Its BermudAir Holidays unit packages flights with hotels, golf, rental cars and other activities. The carrier wants vacation packages to increase from about 3% to 4% of bookings to more than 10%.
One longer-term question is whether the airline’s name will continue to fit an increasingly dispersed network. Pepper acknowledged that BermudAir could eventually outgrow its Bermuda-centered identity, although the island’s premium reputation and British associations provide useful brand recognition.
“For now, BermudAir is going to be the brand,” Pepper said. “Longer-term, in my mind, should the name better match what we operate? Probably.”
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