Wednesday, Nov 14, 2018

Caribbean Airlines achieves operating profit

Caribbean Airlines achieves operating profit
07 Nov
2018

The Trinidad and Tobago based carrier, Caribbean Airlines says it has achieved an operating profit and is “net income positive for the year-to-date.”

The airline which is jointly owned by Trinidad & Tobago and Jamaica on Saturday reported a summary of its unaudited financial results, for the nine months ending September 30.

The accounts show earnings before interest and taxes (EBIT) of positive TT$96 million.

Caribbean Airlines said the earnings comprise TT$118m on international and other operations, and negative TT$22m on the domestic air bridge.

The total net income of TT$48m comprise TT$83m on international and other operations, and a loss of TT$35m on the air bridge.

Year- to- date total revenues show a 15 per cent year-on-year improvement of TT$291M, Caribbean Airlines said.

It said fuel of TT$450.4m was a major expenditure for the same period, compared to TT$345.5M in 2017 resulting in a year-on-year increase of TT$104.9M.

“Caribbean Airlines’ improved performance has been achieved despite the aforementioned losses on the air bridge, which continue to occur,” the statement said.

“Since 2005, the adult fare on the air bridge has been fixed at TT$150 one way, irrespective of rising fuel costs, for which the airline receives no subsidy,” it added.

The airline said the actual breakeven fare on the air bridge is TT$300 one-way.

Of that sum, the passenger currently pays TT$150, the government subsidy to the adult passenger only is TT$50 (children receive no subsidy from the government) and Caribbean Airlines absorbs the loss for the remaining TT$100 or TT$150 depending on if the passenger is a child but occupying a seat, the statement said.

“This is an exceptional achievement for Caribbean Airlines, particularly against a headwind of higher oil prices and our increased support of the domestic operations,” said S. Ronnie Mohammed, chairman, Caribbean Airlines. “We consider this to be great news for the Caribbean region, driven by the team’s high level of professionalism, efficiency and customer focus.”

Garvin Medera, chief executive officer, Caribbean Airlines, said that “this success is testimony to the commitment of our employees and to the loyalty of our customers, who support us throughout the network.

“There is still more to do to build on this foundation, particularly as we enter a traditionally challenging time of year,” he added.

Caribbean Airlines said it is ranked 25th of 164 global airlines for September 2018 for on-time performance by the OAG (Official Aviation Guide) Star Ranking.

Caribbean Airlines operates more than 600 weekly flights to 20 destinations in the Caribbean and North and South America.