(Trinidad Guardian) Caribbean Airlines may have achieved a Parliamentary Committee’s expectation: it moved from losses into operating profit. But the airline is still incurring losses on the domestic airbridge, according to a summary of CAL’s unaudited financial results released by CAL yesterday.
In a media statement, Caribbean Airlines reported “a summary of its unaudited financial results, for the nine months ended September 30, 2018, which show the airline has moved into an operating profit and is net income positive for the year-to-date.”
Chairman S. Ronnie Mohammed was quoted saying, “This is an exceptional achievement for Caribbean Airlines, particularly against a headwind of higher oil prices and our increased support of the domestic operations. We consider this great news for the Caribbean region, driven by the team’s high level of professionalism, efficiency and customer focus.”
The statement noted that the unaudited accounts for the nine months to September 30, 2018 show Earnings Before Interest and Taxes (EBIT) of positive TT$96 million—comprised of $118m on international and other operations and negative $22m on the domestic airbridge.
CAL’s total net income of $48m comprises $83m on international and other operations—and a loss of $35m on the airbridge.
Year-to-date total revenues showed a 15 per cent year-on-year improvement of $291m.
Fuel of $450.4m was a significant expenditure for the same period, compared to $345.5m in 2017, resulting in a year-on-year increase of $104.9m.
CAL said its improved performance was achieved despite the continuing airbridge losses.
CAL explained, “Since 2005, the adult fare on the air bridge has been fixed at $150 one way, irrespective of rising fuel costs, for which the airline receives no subsidy. The actual breakeven fare on the air bridge is $300 one-way. Of that sum, the passenger currently pays $150, the Government subsidy to the adult passenger only is $50 (children receive no subsidy from the Government) and Caribbean Airlines absorbs the loss for the remaining $100 or $150 depending on if the passenger is a child but occupying a seat.”
