Bahamasair incurred loss of $11.7 million in 2012

The national airline of The Bahamas, Bahamasair, recorded a loss of US$11.7 million in 2012 as compared with US$9.8 million in 2011. This was revealed by the deputy Prime Minister and Minister of Works and Urban Development, Philip Davis.

During the period July-December 2012, the airline’s revenue amounted to US$37.4 million, while expenses totaled US$49.1 million.

The increase in net loss was attributed mainly to challenges associated with an aged fleet of aircraft and increases in airport and fuel charges

Davis said that throughout the 2012/2013-budget preparation exercise, Bahamasair had requested US$28 million in subvention funding, but that US$18.6 million had been approved.

“The budget re-forecast for Bahamasair is under review, as it is estimated that additional subvention funding in the amount of US$11.2 million will be needed to cover a shortfall of US$5.5 million from the previous year’s budget, a shortfall of US$3.9 million for operations in the current fiscal year, along with personal emolument increases resulting from the recent grant of increments to Bahamasair’s employees in accordance with the terms of agreements with the relevant unions.

A new business plan for Bahamasair has been prepared by its management and has been presented for consideration by the cabinet with a view towards changing Bahamasair’s business model. The airline continues to struggle and that a full financial report will be submitted soon.