Caribbean Airlines achieves operating profit

The Trinidad & 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 (EBITA) of positive TT$96 million (US$15.36 million).

Caribbean Airlines said the earnings comprise TT$118 million (US$18.88 million) on international and other operations, and negative TT$22 million (US$3.52 million) on the domestic air bridge.

The total net income of TT$48 million (US$7.68 million) comprises TT$83 million (US$13.28 million) on international and other operations, and a loss of TT$35 million (US$5.6 million) on the air bridge.

Year-to-date total revenues show a 15 percent year-on-year improvement of TT$291 million (US$46.56 million), Caribbean Airlines said.

It said fuel of TT$450.4 million (US$72.04 million) was a major expenditure for the same period, compared to TT$345.5 million (US$55.28 million) in 2017 resulting in a year-on-year increase of TT$104.9 million (US$16.78 million.

“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 (US$24) 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 (US$48) one-way.

Of that sum, the passenger currently pays TT$150 (US24), the government subsidy to the adult passenger only is TT$50 (US$8) – children receive no subsidy from the government – and Caribbean Airlines absorbs the loss for the remaining TT$100 (US$16) or TT$150 (US$24) 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 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. -(CMC)