Saturday 24 August, 2019

CAL achieves unaudited operating profit for fiscal year 2018

Caribbean Airlines has said that a summary of its unaudited 2018 financial results show the airline has moved into an operating profit and is net income positive for the year.

According to a statement issued by the airline on Friday, the unaudited accounts for the fiscal year ending December 2018 show Earnings Before Interest and Taxes (EBIT) of positive TT$111m comprising of TT$158m on international and other operations, and negative TT$47m on the domestic air bridge.

The combined net income resulted in an overall figure of TT$42m, comprising of $TT109m on the international and other operations and a net loss of $TT67m on the air bridge.

Total year-to-date revenues showed an improvement of eleven per cent (11%) year-on-year of TT$292M. Fuel of TT$597m was a major expenditure for the same period, compared to TT$471m in 2017 resulting in a year-on-year increase of TT$126m, driven by a WTI (West Texas Intermediate) Oil price of US$64.94 per barrel from WTI US$50.88 per barrel in 2017.

Commenting on the achievement, Caribbean Airlines Chairman Mr. S. Ronnie Mohammed stated: “With the continuous improvement of our technological footprint and the meticulous, hard work of our employees, Caribbean Airlines is happy to confirm that it was able to record an operating profit in 2018 in contrast to a loss just two years ago.

"We consider this an exceptional achievement for our airline and for the Caribbean. The Board of Directors will continue to support the management team towards the sustainability of this commercial success in 2019 and beyond. We thank our employees for their dedication and our customers for their loyal support.”

The airline’s Chief Executive Officer, Mr. Garvin Medera praised the Caribbean Airlines Team and noted: "The significant improvement in the financial results in 2018 is attributable in large part to our focus on an improved experience for customers, more efficient use of resources and better utilisation of the route network.

"Profitability gives us a strong foundation to develop the business further, including improved training and support for our employees, a refreshed brand, added enhancements to the customer experience, and more advances in the use of technology, both inside the business and customer facing. By making the right investments now, we can yield extremely positive long-term results."

CAL also highlighted a number of key achievements over the last year including:

-World Travel Awards winner - the Caribbean’s Leading Airline Brand
-World Travel Awards winner for the eighth year – the Caribbean’s Leading Airline

New products, features and services:
-Caribbean View – free wireless in-flight entertainment
-Caribbean Upgrade – economy ticket holders can bid for Business Class seats on all eligible routes
-Caribbean Plus – extra legroom in rows 4-10 in the economy cabin of the Boeing 737-800 jet aircraft
-Caribbean Explorer – travelers can go to several islands on one affordable fare
-Caribbean Café – Caribbean manufactured products for sale on board
-Online Caribbean Club access
-Online Caribbean Miles rewards redemption
-WhatsApp chat for tier members
-Online Hotel Bookings

New flight services:
-Twice weekly between Port of Spain, Trinidad, and Havana, Cuba
-Nonstop between St Vincent and the Grenadines to John F. Kennedy, New York

-New Cargo website and On-line tracking of Packages
-Expanded freighter schedule between Miami and the Caribbean

Agreements with Industry Partners:
-Interline ticketing with Hainan Airlines, China
-Online interline booking capability with LIAT, Bahamas Air, and Suriname Airways

In 2019, under the Caribbean Identity corporate campaign, the airline continues to roll out new products and services. Caribbean Airlines thanks its valued customers and stakeholders for their contribution to and support of the airline’s success.

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