Caribbean Airlines Evaluated Potential Panama Flights

The carrier is reviewing route economics after a bilateral air agreement was signed with the Panamanian government.

Updated on Sept. 23, 2026 in Central America

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Caribbean Airlines is conducting an economic feasibility study for new flight routes to Panama following a recently ratified bilateral air agreement. AI Illustration. Upload story photo >

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Caribbean Airlines has entered discussions regarding potential flight operations to Panama. The airline is currently evaluating the economic viability of the route following a formal agreement signed by Trinidad and Tobago.

Why it matters

The proposed service expansion follows a new bilateral agreement, signaling a move to strengthen connectivity between the two nations. It could challenge the existing market presence held by other regional carriers.

Copa Airlines currently maintains a consistent service schedule with up to 10 weekly flights to Trinidad. Caribbean Airlines is now conducting an economic assessment to determine if establishing its own operations is feasible.

The players

Caribbean Airlines

The national carrier of Trinidad and Tobago operates as the primary airline for the region.

Varma Khillawan

He serves as the Acting CEO of Caribbean Airlines.

Diomedes Carles

He is the Panamanian ambassador who met with airline leadership.

Copa Airlines

The Panamanian flag carrier currently operates routes between Panama and Trinidad.

The details

Acting Caribbean Airlines CEO Varma Khillawan met with Panamanian ambassador Diomedes Carles to discuss the invitation to begin operations. The airline must complete a review of route economics and submit necessary regulatory filings if it chooses to move forward.

Timeline

  1. September 2026: The Air Services Agreement was signed.

  2. September 22, 2026: Ambassador Diomedes Carles met with Acting CAL CEO Varma Khillawan.

Travel Outlook

This development follows the established pattern of international aviation policy liberalization seen in various global Open Skies agreements. It positions Caribbean Airlines to potentially capture a larger share of the traffic connecting the Caribbean to Central American hubs.

Travelers currently flying between Trinidad and Panama should monitor potential updates to airline schedules and capacity changes. The introduction of a new carrier on the route could eventually lead to more competitive pricing options for passengers.

The takeaway

The airline's internal review will determine if the route's economics justify the entry into a market currently served by established competitors. Passengers interested in the region should watch for official service announcements in the coming months.

Further reading

For more information on regional aviation developments, visit the Central America section.

Source note: This article includes information reported by CNC3.

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Would you choose a new direct flight route if it became available from your local airport?