Air Jamaica losses lead to Caribbean Airlines being US$52m in the red

The Air Jamaica operations of Caribbean Airlines recorded an unaudited loss of US$38.1 million over the last financial year.

PORT-OF-SPAIN, Trinidad and Tobago, Thursday May 10, 2012 – The debts of Caribbean Airlines Ltd. (CAL) has a multi-million dollar debt burden valued at more than US$42 million.
 
And, on top of that, CAL recorded a consolidated unaudited loss of US$52.8 million for the financial year ending December 31, 2011, US$38.1 million of which are losses incurred by its Air Jamaica subsidiary.

These figures were revealed recently by Finance Minister Winston Dookeran as he replied to Opposition questions in Trinidad Parliament about the performance of the Trinidad-based international air carrier.

In outlining CAL’s debt position, Dookeran revealed that, at March 2012, the airlines debts included US$8.1 million to the Trinidad and Tobago Airports Authority of, plus US$6.1 million in taxes payable to the US Internal Revenue Service.

On the fuel subsidy given to the carrier, Dookeran reported that the total fuel subsidy provided to CAL as at March 15, 2012 was equivalent to US$22 million, of which US$6.3 million was outstanding.”

He also said Cabinet had agreed to an extension of the fuel-hedge mechanism for CAL to cover January 1 to December 31, 2012 at the benchmark fuel price of US$1.50 per gallon for CAL and US$2.34 per gallon for the Air Jamaica operations.

Dookeran said CAL has submitted claims for fuel subsidy for the Air Jamaica operations in the amount of US$3.1 million for the three-month period from January 1 to March 31, 2012, but payment could only be made after the claims were audited by the Central Audit committee of the Ministry of Finance. Click here to receive free news bulletins via email from Caribbean360. (View sample)