Caribbean Airlines Suffers Massive Loss Due To Covid-19 Pandemic

Caribbean Airlines has recorded an operating loss of US$109.2 million on revenue of US$118.6 million, based on unaudited financial results for the year to the end of December 2020.

The previous year saw a positive (Earnings Before Interest &Taxes) EBIT of US$11.2 million on revenue of US$440 million for the 12-month period.

Operating expenses for 2020 were US$228m, 47 percent lower than 2019 due to fewer flights and strict cost controls.

CAL CEO Garvin Medera said: “The first two months of 2020 continued our upward trajectory of the previous three years and the next phase of our strategic plan was commencing strongly.

However, COVID-19 has taken a sledgehammer to international travel and tourism for the past 10 months and our financial results for last year fully reflect this new reality.”

He added: “Nonetheless, in spite of the pandemic, and reduced flying, we managed to add new destinations to our network and expanded our cargo offerings to include charter services. We also provided support through repatriation flights for a number of Caribbean nations and resumed operations in some destinations outside of Trinidad and Tobago where borders are open.”

Last year saw passenger flights at times 90 percent lower than the same period for the previous year as a result of international border closures from March 2020 onwards.

Passenger numbers for 2020 fell substantially by 71 percent to 741,676 (371,549 of which traveled on the domestic air bridge between Trinidad and Tobago), in comparison to 2019 when the airline carried 2,595,526 persons.

CAL Chairman Ronnie Mohammed said: “2020 was the worst year on record for the global travel industry and specifically for aviation. Regrettably, Caribbean Airlines was hit hard.

From a promising period of progress and profitability, we were severely negatively impacted. However, the Board of Directors and Management remain committed to the sustainability of Caribbean Airlines in 2020 and beyond.”