Despite higher oil prices…Caribbean Airlines records TT$96 million profit

Nov 02, 2018 News

Caribbean Airlines which had some years ago earned the title of Guyana’s flagship carrier has made a whopping profit of TT$96 million for the first nine months of this year. This is according to information released by the company.
A summary of the airline’s unaudited financial results for the nine months, ending September 30, 2018, reveals that it has moved into an operating profit and is net income positive for the year-to-date.
“The unaudited accounts for the nine months up to September 30, 2018 show Earnings Before Interest and Taxes [EBIT] of positive TT$96m. This is comprised of TT$118m on international and other operations and negative TT$22m on the domestic air bridge,” the airline shared in a statement.
The airline’s total net income of TT$48m comprises TT$83m on international and other operations and a loss of TT$35m on the air bridge. Year- to- date total revenues, the company divulged, showed a 15 percent year-on-year improvement of TT$291M. However, fuel of TT$450.4M was a major expenditure for the same period, compared to TT$345.5M in 2017 resulting in a year-on-year increase of TT$104.9M.
According to the airline too, it was able to improve its performance despite evident losses on the air bridge which continues to occur.
The airline also revealed that “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.” It was also revealed that “The actual break even 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 is occupying a seat.”
With respect to the improved performance, the airline’s Chairman, Mr. S. Ronnie Mohammed, stated, “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 to be great news for the Caribbean Region, driven by the team’s high level of professionalism, efficiency and customer focus.”
The airline’s Chief Executive Officer, Mr. Garvin Medera, said too 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.”
Other highlights for the period January to September 2018 includes: Improved cargo and freighter revenue and profit; increased passenger numbers and load factors on many key routes; launch of new products, features and services including: Caribbean View, Caribbean, Upgrade, Caribbean Plus, Caribbean Explorer, online Caribbean Miles redemption, Online Webchat, WhatsApp Chat, and Caribbean Café.
The airline also introduced New services from Port of Spain to Cuba and from St. Vincent to New York; developed new cargo website; executed interline ticketing with Hainan Airlines and introduced online interline bookings with three Regional Partners.
Caribbean Airlines has ranked 25th out of 164 global airlines for September 2018, for on time performance by the Official Aviation Guide (OAG) Star Ranking. It was also voted as winner of ‘Caribbean’s Leading Airline’ for the eighth consecutive year and was also selected as the ‘Caribbean’s Leading Airline Brand 2018’. As it relates to its Air-Bridge Performance the company operated a total of 11,372 flights and the total seats provided were 805,233 while the Total Passengers carried was 716,299.

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Despite higher oil prices…Caribbean Airlines records TT$96 million profit

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