Caribbean Airlines set to cut fleet and workforce due to COVID-19 losses

Trinidad & Tobago-based Caribbean Airlines (CAL) is planning a major restructuring as the COVID-19 pandemic decimates revenues.
The regional carrier is planning to cut its workforce by 25 percent and reduce its 17-strong fleet. The decision comes on the back of another major loss for the airline, forcing long-term changes.

The carrier, which is the flag carrier of Trinidad & Tobago, Jamaica, and Guyana, saw its revenues fall by a massive 75 percent during the first quarter of 2021. This resulted in a loss of TT$172.7 million (US$25.4 million) for the quarter, aided by steep cost cuts made in the last year.

CAL will slash 450 jobs and in addition, the carrier is looking to exit unprofitable markets, by resizing route networks. In an earlier attempt to save jobs and reduce its salary bill also, the company took steps which saw some of its employees being sent on no-pay leave, while some got salary cuts and another set laid off.

In a statement about the upcoming restructuring, the airline said:

“These steps include major cost reductions in all areas of the airline’s operations, specifically its human resource complement, its fleet and other assets, and its route network. Since the beginning of the COVID-19 pandemic and the suspension of operations at its base in Trinidad & Tobago, the airline has seen passenger numbers plummet, and flight numbers reduced to less than 10 percent of normal operation.”

Presently, Caribbean Airlines operates a fleet of 17 aircraft, consisting of 7 ATR 72s and 10 Boeing 737-800s.
Currently, 4 planes remain parked – 3 737s and 1 ATR 72s. These 4 aircraft could be the ones that could be permanently grounded.

Prior to the outbreak of the pandemic in 2020, CAL had a 2-year streak in profits earning TT$27.2 million (US$4 million) and TT$74.8 million (US$11 million) in 2018 and 2019, respectively. Since last year, the carrier’s operating loss has, however, significantly grown to TT$738 million (US$190 million) as the airline transported approximately 1.8 million less passengers than it did in the previous year.