SBA Airlines (Caracas Simón Bolivar) will terminate its existing Caracas Simón Bolivar to Panamá City Tocumen International service with effect from May 19 citing unspecified operational problems with the route. Sources at the carrier state the problems began in January when the Venezuelan currency-control regulatory body, CADIVI, eliminated US Dollar allocations given to Venezuelans travelling to Panama.

In the wake of rising tensions, Caracas cut diplomatic and political ties with the Central American nation in March after accusing it of being a puppet of the United States.

The resulting decline in demand for travel to Panama severely impacted the airline's cash flow culminating in the route's termination, the source said.

As a replacement, SBA will instead begin offering flights to Lima International - a route previously served by TAME Ecuador (Quito International) until it suspended its Venezuelan services in January - also effective May 19.

SBA operates three B757-200s, two B767-300(ER)s and two MD-83s on flights which also include Miami International and Tenerife Norte.