PORT OF SPAIN, Trinidad, Thursday November 1, 2018 – Caribbean Airlines has moved from recording losses to registering operating profit.
The Trinidad-based airline says a reported a summary of its unaudited financial results for the nine months ended September 30, 2018, show it has moved into an operating profit and is net income positive for the year-to-date.
The unaudited accounts for the nine months show Earnings Before Interest and Taxes (EBIT) of positive TT$96 million (US$14.3 million) – this is comprised of TT$118 million (US$17.5 million) on international and other operations and negative TT$22 million (US$3.3 million) on the domestic air bridge. The airline’s total net income of TT$48 million (US$7.1 million) is comprised of TT$83 million (US$12.3 million) on international and other operations and a loss of TT$35 million (US$5.2 million) on the air bridge.
Year-to-date total revenues showed a 15 per cent year-on-year improvement. Fuel of TT$450.4 milllion (US$66.8 million) was a major expenditure for the same period, compared to TT$345.5 million (US$51.3 million) in 2017 resulting in a year-on-year increase of TT$104.9 million (US$15.6 million).
Caribbean Airlines said its improved performance has been achieved despite the aforementioned losses on the air bridge which continue to occur. Since 2005, the adult fare on the air bridge has been fixed, irrespective of rising fuel costs, for which the airline receives no subsidy.
The airline’s Chairman, S. Ronnie Mohammed said the improved performance is an exceptional achievement for Caribbean Airlines, particularly against a headwind of higher oil prices and increased support of the domestic operations.
“We consider this to be great news for the Caribbean region, driven by the team’s high level of professionalism, efficiency and customer focus,” he said.
Caribbean Airlines CEO Garvin Medera added that the success was testimony to the commitment of the employees and to the loyalty of customers, who support the carrier throughout the network.
However, he noted, “there is still more to do to build on this foundation, particularly as we enter a traditionally challenging time of year”.
Other highlights for the period January to September 2018 were: improved cargo and freighter revenue and profit; increased passenger numbers and load factors on many key routes; and the launch of new products, features and services.