Caribbean Airlines reports US$109M in losses due to pandemic

…over 1.8M fewer passengers than 2019

Regional air carrier, Caribbean Airlines Limited (CAL) has recorded a US$109.2 million operating loss in 2020 due to the hard hit to travel and tourism as a result of the COVID-19 pandemic.

On Tuesday, the Airline announced its unaudited financial results for the year to the end of December 2020, with the impact of the global pandemic resulting in an operating loss (Earnings Before Interest and Taxes – EBIT) of TT$738m (US$109.2m) on revenue of TT$802m (US$118.6m).

“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,” CEO of Caribbean Airlines, Garvin Medera said in the report.

According to CAL, at times during 2020 passenger flights were 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 a mere 741,676 (371,549 of which travelled on the domestic air bridge between Trinidad and Tobago), in comparison to 2019 when the airline carried 2,595,526 persons.

From the financial angle, 2019 saw a positive EBIT of TT$76m (US$11.2m) on revenue of TT$3bn (US$440m) for the 12-month period. However, operating expenses for 2020 were TT$1.54bn (US$228m), 47 percent lower than 2019 due to fewer flights and strict cost controls.

“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,” Medera added.

Meanwhile, Caribbean Airlines Chairman, Mr. S. Ronnie Mohammed said that though the airline has been significantly impacted, it will continue to positively push forward in the coming years.

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.”