Friday 18 September, 2020

CAL working to bring financials up to date

Efforts are being made to bring Caribbean Airlines outstanding financials up to date.

Garvin Medera, Chief Executive Officer of Caribbean Airlines, said they are hoping to complete the outstanding financials by the end of the year.

Speaking to the media at the launch of the airline's Caribbean Plus initiative, Medera said the company’s financials are behind by two years.

In his address, Medera said the airline was off to a good start in the first quarter of 2018.

Unaudited results showed that Caribbean Airlines had a better first quarter than the same period in 2017.

He said the overall numbers show an increase of 21 percent in revenue and 64 percent in earnings year on year.

“These outstanding results are attributable to a seven percent increase in demand on passenger revenue and to a larger extent to revenue management initiatives and tighter controls on costs, even in spite of a 14 percent increase in fuel prices,” he said.

Pressed to elaborate further, Medera told the media in some areas they made a profit while in some they made a loss.

“The reality is the airline is very seasonal and each quarter will present different challenges, it is not a constant throughout the rest of the year.  So profitability as a whole for the airline doesn’t necessarily hinge on any quarter or the other but what we represented is that we improved significantly year on year,” he said.

Medera said the result represents overall profitability and was derived from improvements on other routes and not the air bridge, which he said is not profitable.

Asked about the fuel prices, Medera said the bottom line shows that they have improved despite any increases in that area.

“We budgeted this year for $60 a barrel, we are well beyond that. That is a consequence to doing business in this industry. We have to think in terms of innovation to improve the revenue beyond those extra costs and other means of optimising our costs along the way. If we look at progress so far we already improved beyond fuel prices so far.”

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