Regional carrier Caribbean Airlines Limited (CAL), headquartered in Trinidad & Tobago, continues to be buffeted by financial woes and operational difficulties.

For the first quarter of the year, Caribbean Airlines reported losses of US$26 million and a 75 per cent drop in revenues compared to the same period last year.

Since the COVID-19 pandemic outbreak began in March 2020, CAL has racked up operating losses of US$190 million.

COVID-19 has decimated the airline industry across the world, forcing many carriers, including CAL, to restructure their operations. CAL is now flying two million passengers less than it did last year.

Launched back in 2006, Caribbean Airlines was able to report a profit in both 2018 and in 2019 and the future looked bright. The airline flies to 18 destinations throughout the Caribbean, Canada and the United States.

Now, with COVID-19 in its second year and with practically no regional assistance, CAL has to go into retrenchment and scale back its operations.

“We will need to adjust operations to cater for a reduced scale of demand after the opening of borders. Put simply, passenger demand in the short to medium term is not going to recover sufficiently to support the existing company structure,” St Maarten’s Daily Herald reported the airline as saying.

CAL’s CEO, Garvin Madeira, is faced with the conundrum of ensuring that a quality service that satisfies passengers exists while exercising financial prudence by reducing its operational capacity.

He is constantly regaled with how lousy and unreliable the regional airline is and will have to do his utmost to reassure the people of the Caribbean that the airline is both viable and capable of transporting its citizens in an efficient and comfortable manner.

Speaking with Our Today from Austria, Captain Daniel Norton, formerly of Qatar Airways, said: “COVID has hit the industry hard but it has especially highlighted the intrinsic weaknesses of Caribbean Airlines. It always faced challenges linking the region efficiently and cost effectively. It almost costs you and takes as much time as going from one island to the other as it does flying to England.

“Then, the brunt of the responsibility and cost is allowed to remain with Trinidad despite Jamaica having near to a 17 per cent stake. You have to ask the question, are Caribbean governments really serious about having their own regional carrier? One get’s the feeling many of them want something for nothing. Right there with Caribbean Airlines you see why CARICOM is a joke. Trinidad has plowed about US$100 million into Caribbean Airlines to prop it up during these difficult times. Who else has made a meaningful contribution?”

In a statement, CAL somberly announced that it will now have to reduce staff and many will have to face salary cuts.

“In terms of employees, the airline has determined that 25 per cent of its workforce or about 450 positions throughout its network are surplus to its current needs. The company will embark on consultation with the employees and other stakeholders, with respect to treating with this surplus labour situation.”

The Caribbean carrier has six ATR 72-600 turboprops in operation as well as seven Boeing 737-800s. It has ordered an additional five Boeing 737 Max aircraft.

NOT HOLDING OUT CONFIDENCE

Its fleet size will now have to be recalibrated as turbulent times takes hold.

“As part of the streamlining strategy, the number of jets in the fleet will be reduced for the time being, over the course of 2021. Its route network will also be adjusted to reflect the changing market,” said the airline via a statement.

Caribbean Airlines is not holding out much confidence in its fortunes in the near future and is signaling that its contraction of operations will not be readjusted anytime soon.

“The announcement that the borders of Trinidad & Tobago may soon reopen is welcome news, but all forecasts suggest that the recommencement of travel will not be in the same volumes as they were pre-COVID.

“Therefore, until air travel regains its pre-COVID momentum, the airline will need to adjust its operations to cater for a reduced scale of demand after the opening of the borders,” declared CAL in a statement.

It’s not all bad news though.

Caribbean Airlines is expected to fly between Trinidad and Tobago and the Eastern Caribbean on July 17, 2021. It will resume flights to New York, Miami and Toronto, thus linking the Diaspora.

From August 13 and 16, it will lay on flights to St Lucia, Jamaica and Orlando, then add on more destinations.

With Tropical Storm Elsa expected to pass through the Caribbean this weekend, Caribbean Airlines has cancelled a number of flights in the Eastern Caribbean.